Tenancy

What is a Pub Tenancy?

A standard pub tenancy agreement is normally a renewable tenancy over a fixed period of time. Most pub companies will offer a tenancy agreement over 3 or 5 years and some will offer a short 6 month tenancy agreement initially to ensure the ingoing tenant is suitable and equally the pub is suitable for the new licensee. Tenancy agreements normally have rent appraisals agreed on a three year cycle.

A pub tenant will be responsible for the rent on a monthly basis, but will normally have to purchase the fixtures and fittings of the public house. Some pub companies will allow you to purchase the fixtures and fittings over the term of the tenancy, this known as an assisted tenancy plan. However you will have to purchase the stock when you take over the pub and will be expected to have some working capital.

Fixtures and fittings will include carpets, curtains, tables and chairs, pictures, lighting and all the equipment needed to run a pub.

Tenants are normally responsible for repairs; this can include thing such as drains and other repairs always check with what you are responsible for before signing a pub tenancy agreement.

Pub tenancy agreements will normally be tied to a brewery for the stock you can order. This will normally mean that you are tied to purchase all beer, bottled beer and alcopops. Some tenancy agreements will exclude a tie on spirits and soft drinks. Again you will need to check on what your proposed pub tenancy agreements includes.