PUB RENT REVIEW
A well-established public house in Harrogate instructed Mike Hughes when they received the initial correspondence for a rent review.
The pub is owned by a major PubCo and tenants at the pub were assessing the possibility of taking advantage of the opportunity to request an MRO lease. The tenants’ understood that the rent review was a trigger so realised they must decide how to progress within a tight timescale. Following a conversation between the tenants and Mike Hughes it was decided that an MRO lease would have no advantage for the business. This was due in the main to the high percentage of food sales the business enjoyed as part of the overall turnover.
Having instructed Mike Hughes, he was able to quickly identify that the PubCo had not adhered to their own code of practice in respect to the rent review process. This allowed the tenants to decline the initial rent review offer from the PubCo and demand a reassessment, taking full account of the PubCo’s own code of practice. The result was a lower rent agreed at rent review by the tenants and establishing a more professional process for future negotiations between the tenant and the PubCo.