Pub tenants warned to keep an eye on rent review dates

By Gurjit Degun

- Last updated on GMT

Related tags Rent review Renting Lease Leasing

Pub tenants should keep a closer eye on rent review dates, or face paying a higher rent for a longer period than they should — that’s the warning from licensing surveyor Morgan & Clarke.

The firm revealed that various pub company and brewery codes of practice state that notification of a rent review should be tabled at least six months before the due date.

However, Morgan & Clarke said it is finding “an alarming number of situations where no notification has been given at all, often despite constant reminders”. The firm said this was the case with half of its clients.

The firm used the example of a current client to show how long rent reviews can take. The Milford Arms in Isleworth, west London, had a rent review date of 2010, but the case has still not been resolved.

David Morgan said: “The simple fact exists that almost all rents on either lease renewal or rent review will go down, some by as much as 50%.

“It is thus not in the interests of your freeholder to alert you to the fact of the rent being reviewed as if the due date slips quietly by, you continue to pay the higher rent until and if the full procedures are activated.”

Simon Clarke added: “The tenant should be checking their leases to see when their rent review is due.

“If they have not heard anything from their landlord, they should write a letter (also known as a section 26) reminding the company to send through a rent review notice.

“There’s a fair chance the tenant is paying more rent than they should be.

“They need to be aware of the rent review and make sure that it takes place as soon as possible.

“It is worth getting a lawyer to draft the letter for you, or the tenant could find a section 26 form to fill in.”

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