Guide to Pub Tenancies - By: Kathryn Dawson

There is no question that pub tenancies vary from pub to pub and brewery to brewery. Depending on what you are looking for will depend on the type of pub you end up with and the type of tenancy you take on. Taking on a pub tenancy can be an excellent career and lifestyle choice. There are pubs up and down the country that are for rent and anyone regardless of background and experience can take on the lease. Are you looking for a new career or a new direction in life? Running a pub could be the very thing that you are looking for. If you are new to the pub game or are just curious as to what it is involved in a pub tenancy then read on.

As mentioned, tenancies vary from pub to pub. A standard length of time however is 3 years and of course there is always the opportunity to renew the tenancy at the end of the agreement. It is not a great idea to undertake a tenancy for less than 3 years because you need a decent amount of time to ensure you have the best chance of making the business a success. Like any business, running a pub can be hard work. You need time to implement changes and see the returns. Whilst there are some privately owned public houses in the UK, a large number are owned by breweries. It is the breweries that provide the tenancy agreement. As well as providing some or all of your drinks, they will also act as your ongoing business partner providing help and assistance when necessary.

The tenant and the brewery have clear roles in a tenancy. As the landlord you are in charge of running the pub from day to day. That means you are in charge of marketing, recruitment, management and everything else necessary to open up and maintain a successful pub business. The brewery is in charge of any major structural repairs and maintenance for the building because they own the premises, but you are responsible for minor repairs and tasks related to the building. You are also required to maintain fixtures and fittings and equipment used. For example if a wall needs painting or the dishwasher breaks, as the tenant you will organise and pay for repairs. If the roof is leaking or an exterior wall needs repointing, the brewery will step in to ensure the repairs are carried out.

When you become a pub landlord you are required to have some upfront capital. It does vary depending on which brewery you are dealing with, but generally speaking you should expect the following initial payments:
- purchase of the fixtures and fittings from the outgoing landlord.
- purchase of all glassware, catering equipment and other equipment necessary to running of the pub.
- purchase of all existing stock from outgoing landlord
- deposit payable to the brewery. This figure varies depending on size and location of pub but you should budget for several thousand.
You will also need to have a sum available as the working capital to get the pub up and running. This figure is a fixed amount that the brewery allocates per pub. For the lease of some pubs you may be required to have many thousands of pounds available as working capital. For smaller pubs with fewer overheads you may not be required to have as much.

Once your application has been accepted you will be handed the keys to your very own pub business. You are able to run the pub as you see fit. You can introduce food to the establishment if you wish, perhaps organise some theme nights too for extra revenue. If there is no pool table then you could even provide a games room. You can go as far as you wish with your pub under your tenancy agreement. Pub tenancies are a great way for people to live the dream. Having the brewery as pub partners ensures you have help and advice on hand and can get your business off on the right foot.

About the Author

Kathryn Dawson writes articles for Badger Pubs, helping you to get started with your dream pub business. Your search for the perfect pub begins with Badger Pubs, who can help you with a range of issues including pub tenancies, finding pub partners and support and training services.

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