As a public house (pub) owner, grappling with the intricacies of rent reviews and understanding the pub code can be a daunting task. The legal process of rent reviews is commonly used in the pub industry to adjust the rent for commercial properties.
However, it is important to have a good understanding of this process to ensure that you are not overpaying. This article aims to provide a comprehensive explanation of rent reviews and the pub code, along with a plethora of tips to help you navigate these processes effectively.
Rent reviews entail the legal process of adjusting the rent for commercial properties such as pubs, based on the current market value of the property. Typically, the reviews occur every five years, and the new rent established by taking into account the prevailing market conditions. The exercise often results in substantial rent increase, which may pose a challenge for pub owners, particularly if their business is not thriving.
The Pub Code
The pub code, established in 2016, was designed to regulate the relationship between pub tenants and their landlords. The code’s objective is to ensure that tenants receive fair treatment and are not subjected to unreasonable practices by their landlords. The pub code provides specific guidelines for rent reviews, including the requirement for landlords to provide a detailed rent assessment and the right for tenants to have their rent assessed by an independent expert.
Tips for Navigating Rent Reviews and the Pub Code
1. Start Your Preparations Early
In preparation for rent reviews, it is vital to commence early planning. Gathering all relevant information, such as your lease agreement and previous rent assessments. Ensures that you have a clear understanding of your current rent and any potential rent increments.
2. Seek Expert Assistance
Navigating rent reviews and the pub code can be a daunting task, which necessitates expert assistance from accounting professionals with specialised knowledge of the pub industry. These professionals can assist you in evaluating your current rent, negotiating with your landlord, and navigating the rent review process.
3. Understand Your Rights
It is critical to have a comprehensive understanding of your rights under the pub code. It is incumbent upon pub owners to ensure that landlords adhere to the guidelines set out in the code. If you believe that your rights infringed, seek legal advice immediately.
4. Negotiate Effectively
Negotiating with your landlord can be a challenging process, but with the right approach, you can achieve a favourable outcome. Ensure you have all your facts on hand to support your case. Prepared to make a strong and well backed case as to why your rent should remain the same or reduced and negotiate from a position of strength.
How Carroll Accountants Can Help
Carroll Accountants well-equipped to provide professional advice and assistance to pub owners. Helping you to successfully navigate rent reviews and the pub code. Our team of experienced accountants can provide expert advice on rent assessments, negotiations, and the pub code. We can also support you with bookkeeping, payroll, and tax preparation, ensuring that your financial operations run efficiently and smoothly. Please contact us today to learn more about how we can help you with your pub accounting requirements.