How to untie a pub tenant!
The tenants of the very large pub companies have been complaining for years about how they are treated by their landlords – not just through the drinks tie that means that they can’t negotiate discounts with suppliers but also because of onerous lease terms to do with repairs, the use of the property, licensing conditions, pay as you go meters and onerous buy-back provisions (just to mention a few!).
However, help is at hand in the shape of the Pubs Code Regulations 2016 and the Pubs Code Adjudicator – as long as you can navigate the complexities of the new rules, which is where Guest Walker come in.
We can help tenants to obtain a free of tie MRO (Market Rent Only) lease which will allow them to get the benefit of all those big discounts and a modern form of agreement that is fit for the 21st century.
There are certain eligibility hurdles to clear first and the right to claim an MRO lease only occurs in certain circumstances (e.g. rent review or lease renewal) but if the potential benefits are substantial enough then it’s worth sticking with the process.
We can advise on the cost of all of this and on getting expert professional advice on rent terms etc. It needn’t be that expensive!
We can also help tenants to look at the option of staying with their landlords within the tie – something that might be attractive if the landlords make the kind of offers that we’ve seen recently from large pub companies who clearly don’t want to see good operators escaping from the tie through the MRO option.
Contact John Walker on 01904 624903 or by e-mail at firstname.lastname@example.org for an informal (free of tie!) chat if you’d like to know more.