Despite significant changes in lifestyle and leisure activities over the last 20 years or so, traditional public houses remain an integral part of our British social life, culture and heritage. Ranging in style and character from wet-led boozers to gastro-pubs, from family friendly pubs to late night bars and from village locals to town centre sports bars, they are dear to our hearts.
Usually valued and rentalised on a Profits Basis where the parties are required to assess the Fair Maintainable Turnover (“FMT”) and Fair Maintainable Operating Profit (“FMOP”) of the Reasonably Efficient Operator (“REO”), they can be a minefield for the unwary. Assessing barrellage, factoring in food sales and income from letting rooms, adjusting for Tied or Free of Tie arrangements and allowing for improvements and business-related occupational costs requires skill and experience.
The Lease Advisory Team at DCL has a wealth of experience in the traditional pub sector, being well versed in the Profits method and with access to a broad range of comparable market transactions. Acting for property companies, investors and institutions within the Free of Tie sector and for smaller pub companies and tenants within the Tied market, we provide comprehensive rental advice.
Acting within the Pubs Code etc Regulations of 2016, we offer guidance and support to tied tenants undertaking Market Rent Options (“MRO”).
Howard Day also acts as Independent Expert under the Pubs Independent Rent Review Service (“PIRRS”), which is low cost rent dispute service which tenants can opt for.