Industry expert slams "unfair" pub tenancy deals
A trade expert has blasted unfair tenancy and lease agreements - saying they would "only attract the attention of idiots".
Barry Gillham, chairman of property agent Fleurets, slammed agreements written to favour landlords, saying a prospective tenant would have to be naive to sign.
He added: "I believe in many cases our trade has some way to go before it can design tenancy agreements that will attract the talent the industry deserves, not just setting out a number of water-tight clauses that suit the landlord."
Gillham pointed out the common sense behind fair tenancy agreements.
He said: "If there are clauses in the lease that are detrimental to the tenant's interest, generally speaking, it will result in less tenant interest or a tenant looking for compensation - both of these will result in lower rent."
But he also pointed out the problems in creating an equitable agreement.
"The balance between the right agreement for the landlord and an attractive agreement for the tenant is a difficult one to get right, particularly given that most benefits to the landlord are likely to be negative factors to a tenant," Gillham added.
He has called for tenancy agreements to be structured in such a way that the tenant can make a good living within an agreement that allows for, and rewards, the entrepreneur.
The Federation of Licensed Victuallers Associations chief executive Tony Payne said many tenants had fallen foul of un-fair agreements.
He said: "This happens all the time. People are so eager to get started they don't seek advice."
Payne also recommended asking a trade body as well as a solicitor to look at the tenancy agreement.
"We look at cost as well as the legal side. Solicitors may be able to tell you whether everything is legal, but we look at whether the agreement is economically viable for the property," he added.
For further info on tenancy agreements and to book a consultation, visit www.flva.co.uk
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Your CommentsRobert Feal-Martinez via email 11/05/2006"These comments are very welcome but about 10 years late. Since being a tenant of Inntrepreneur/Unique Pubco company from 1994 to 1999 and escaping with my shirt (just). I have spent a considerable amount of time, shall we say, being a thorn in the sides of the big Pubco's. I have travelled extensively trying to help those who have fallen foul of lease agreements. Over the last 2 to 3 years, despite the DTIE enquiry things have got worse. Pubco's routinely ignore older 'lease' clauses tenants inherit on assignment. They force tenants into agreeing a new lease. Brulines are forced on tenants when under existing leases Pubco's cannot insist. Anyone who resists feels the full corporate might of the Pubco. Space if too short to list here what occurs. Either Barry is very naive or he knows that Pubco's will not change their lease conditions, no matter who is asking. As I have said previously the DTIC missed an ideal opportunity to regulate leases and remove the one way only clauses. If anyone wants genuine independent advice, based on experience and knowledge of how the Pubco's work, I am more that willing to offer free advice. If a full analysis of a pubs potential is required I can also do that, obviously for a fee. I also have many genuine, professional colleagues at hand who can assist with finance, etc. I can be contacted on 01793 822997 or r.feal-martinez@btconnect.com. It is a great industry provided you start off with a genuine partnership with your Landlord or Brewery. It is better to walk away now, with your shirt rather than in two years time without even your underpants for comfort."
Ken Nason via email 11/05/2006"As with Bob I spend much time during the week helping, advising and informing prospective tenants of the minefield they wish to enter.
Consistantly over the last decade the Pubcos have systematically increased the number of costs involved in the property on to the tenants back whilst raising rents at an ever increasing rate. They have "negotiated" by whatever method or formulea that has been to THEIR advantage quoting" industry standards" that they themselves have set. At every turn they have conived to bully, manipulate to achieve their aims which are of course maximum profit for their shareholders. Which is of course the aim of all businesses and in itself is not immoral.
What is immoral is the way that the vast majority of tenants have been lied to, manipulated and bullied for these aims under the guise of a "parnership" and a promise of support and understanding( their words not mine) and how the "establishment" has allowed it to happen despite all in the trade know what goes on.
How can a contract be fair and equitable when a landlord insists on supplying the tenant his tools in trade, does not define the basis for rent calculation, and spends 85% of the contract defining the obligations and penalties for the tenant and 5% their own.
They may be legal but equitable? never!
If the licensed trade landlord /tenant relationship were applied to other business premises in this country(to which it is always compared) the country would be up in arms.
It's like saying a shoe shop has to buy all their shoes from their property landlord but only the styles he says and at whatever price he charges.
Oh and of course the landlord will want full access to your books and you have to pay him over the odds to be trained( whether you need it or not) as well!Madness!!Ken Nason
E B Cant via email, 18/08/2006ROBERT & KEN are both right in their coments, hopefully all tied contracts will be gone in the future, keeping our fingers crossed, but at what price, publicans will still be the work horse for the pubcos, redundancies will be immenent, at HO, althought they will at present deny this & lie throught their teeth, qouting jobs are safe, income & profits to the pubco`s will not change, there greed has gone on for to long, & will not change.
