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Business Support : Do you think your rent is too high and unsustainable
Nigel Wakefield
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I have been investigating the way Pub Co's have raised all pub rents in the majority of cases to an unsustainable level in respect of turnover, trading conditions and viability. I have raised a number of issues with the Royal Institution of CharteredSurveyors, whose guidelines for valuation would appear to have been cherry picked and misused by a number of their Surveyors creating the massive difficulties that a vast number of lessees are in. Again in my opinion these unsustainable rent levels have been used to over value their estate values to gain further funding for aquisitions. If you agree with these statements please put your comments on the Forum and would you please write to the Valuations Dept, RICS, 12 Great George St, Parliament Square, London SW1 P3AD, with your views and comments, please do not send abusive comments I am relying on their assistance to remove this abuse and help all struggling lessees.
11 Posts(s) found for this thread: Now displaying page 2 of 2
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Nigel Wakefield 19/08/2008 13:42:06 |
Do you think your rent is too high and unsustainable Inez, send it to the Head of the Valuation Department in the RICS don't mention my name, otherwise he will assume it is a put up job. From their correspondence they appear to be totally out of touch with what is actually going on under their Professiional Banner. An extract from their letter. We do not see how a landlord will benefit, in the long term, by agreeing rents at an artificially high level. If it puts an individual business in jeopardy, it will have a negative effect on the overall business. What is important is that valuers fully understand what they are doing and how to do it. The Profits Method of Valuation has always been the most appropriate method to adopt; it is the application that is key to a successful market. At the same time, the market needs to reflect changing circumstances, but inevitably there will be some lag due to the nature of property transactions. The current economic situation is clearly causing difficulties to all types of retailer; public houses included. The fact that the industry is also suffering the effects of the Smoking Ban and the severe competition from the off-trade, are matters that experienced licensed property valuers are well aware of and seek to reflect in the advice they provide. We believe most public house landlord companies are well aware of these facts. We cannot comment upon the recruitment processes of the PubCos other than to say that they appear top provide more support and training today than has been the case in the past. The principle of FMT etc This post replies to Inez Ward > Do you think your rent is too high and unsustainable |
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