Tied Tenancy, Questions that you need to Ask and Answers that you need to know. (Part 1)

By | April 28, 2018

Beer Pump Handles

 

Tied Tenancy, Questions that you need to Ask and Answers that you need to know. (Part 1)

All these questions you need positive answers to in writing from your Landlord or Brewer before you take a Tied Tenancy or you consult a Solicitor/Commercial Lawyer. In our opinion these Q.A’s. should be part of a Commercial Agents Pub Details and would save a lot of potential problems and wasted time by potential purchasers.

These questions are based on a standard Tied Tenancy, they do not represent or replace using a Commercial Lawyer or legal advice, they are all issues that people failed to understand or caused, in many cases created problems for people taking Tied Tenancy.

There are two copies of the Q.A’s, the first you need to ask any Landlord or Pub Co whose property you may be considering, for written answers, do not accept blanks or verbal answers under any circumstances.

A Traditional Tenancy as used by the Family Brewers is to sell the products that they brew or manufacture.

A Tenancy is normally short term, the Brewer owns and insures the pub. Pays for repairs, alterations, improvements. The tenant buys the Fixtures and Fittings (F&F) and Stock at Valuation, the only capital they have to find when they buy a pub.

See Note Below for the second set of Q.A’s

Landlords Copy to view and complete, if they refuse or leave blanks, don’t have anything to do with that company.

The Tenancy.

1. What happens if I fail to pay the rent?

Landlords Answer:-

2. What happens if I fail to pay the Business Rates?

Landlords Answer:-

3. Why do I need a Survey?

Landlords Answer:-

4. Why do I need dated photographic evidence of any survey faults?

Landlords Answer:-

5. Why do I need approval to carry out improvements to the property?

Landlords Answer:-

6. Can I sell or change the Fixtures and Fittings (F&F)?

Landlords Answer:-

7. Why do I have to pay a deposit to the Landlord and how much?

Landlords Answer:-

8. Do I have to use the Landlords Insurers?

Landlords Answer:-

9. Does the Landlord have right of entry to the premises at any time?

Landlords Answer:-

10. Do I have to have Brulines or similar as a monitoring system?

Landlords Answer:-

Training.

11. How many qualifications do I need to take and which ones?

Landlords Answer:-

12. How long will these courses take and how much do they cost?

Landlords Answer:-

13. How much training will I get after I have taken on the Tenancy?

Landlords Answer:-

14. How much training do I need to become a Reasonably Efficient Operator (REO)?

Landlords Answer:-

Landlords Supply Tie

15. What is the Supply Tie?

Landlords Answer:-

16. How much credit do I get with the Supply Tie?

Landlords Answer:-

17. Do I get any discount?

Landlords Answer:-

18. Can I buy out in an emergency?

Landlords Answer:-

19. What happens if I can’t pay my Supply Tie Account?

Landlords Answer:-

20. What happens if I go on to a Rescue Package?

Landlords Answer:-

Rent Reviews or Tenancy Renewals

21. Do I need professional Advice on a Rent Review or Tenancy Renewals?

Landlords Answer:-

Trade

22. The business is Tied, how much increase in the Tied business would you consider realistic?

As a guide any estimation over 5% in the first year is pure speculation. Surveyors and pub owning companies have for many used Comparables, based on vaguely similar pubs within a ten mile radius, as explained to me by the Chairman of one of the larger Commercial Agents, which I disagreed with and discussed with the RICS, the assumption being that business is infinite, which it is not.

Business is finite within an area, especially when you first take over, the business you are buying it’s existing business is it’s Market Share, any growth has to be taken from another business, who will fight to retain that business.

You may have a large employer set up a business close by, which is an additional boost, but it could take several years to increase your market share under normal circumstances.

Your business plan should be conservative any over estimation, could be regarded as Retailer Failure if you fail to make your projections.

Landlords Answer:-

Handing back a Tenancy

23. What happens if I hand the Tenancy back to the Landlord/Brewer?

Landlords Answer:-

Details of the different types of Pubs  LINK

Click on this LINK for our thoughts on Answers to the Questions above, so that you may be able ask suitably direct questions and get answers that you understand.

copyright (©) 2018 www.buyingapub.com

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.