Pub Companies Trying to Make Life Hard For Tenants

PUB CODE CHANGES

Following changes to the pub codes last year implemented options for certain tenants to be released from pub ties and the complete removal of a gaming machine tie a report has emerged showing that pub operators are not making the market rent only option easy for tenants.

The pubs code adjudicator has commissioned a report stating that pub operators are going against the spirit of the code by blocking tied tenants access to the market rent only option (MR0).

Evidence in the report outlines that operating businesses covered by the pubs code have implemented a number of strategies to make it difficult for tied tenants to exercise their MRO.

The report has highlighted incidents in which pub operators have withheld information, offered tenants unreasonably high rents and unusual terms, as well as failing to engage in meaningful negotiations – all with the intent of making the MRO less attractive to tenants.

The report also found the most significant barrier was the insistence by pub operators that a brand new tenancy agreement was required rather than a deed of variation. With the latter, tenants can be released from tie, fully and partially, without changing the other terms, however costly stipulations can be inserted into completely new agreements.

Such actions have prompted some tenants to refer their disputes to the Pubs adjudicator which creates added costs with legal fees and stress.

Changes to the pub codes in July last year mean that tenants in England and Wales with gaming machines are no longer tied to certain suppliers providing they are with pub owning businesses that have 500 or more tied pubs. Tenants with a lease pre dating 26th May 2016 will, however, still be tied to machines until their next rent review.

You could be entitled to have your gaming and amusement machines from any supplier which will also mean more money in your pocket. give us a call to chat about this in more detail and to find out if you can have the latest fruit machine or digital jukebox in your pub on a far better deal today.

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