The budget needed to take over a pub lease depends wildly on the pub in question. It also depends on the brewery or company who are offering the lease. There are many factors that affect the initial price of a lease, the upfront costs involved in the monthly rent too. If you are considering a new career as a pub landlord then you should be aware of the costs involved. Whilst it is true that taking on a pub lease gives many more people the opportunity to run a pub business there are some initial payments that are needed and some costs that you may not have thought of. This article provides all the financial information about taking over a pub lease and provides information on how you can find the cheapest pub leases.
There are different types of pubs available for rent all across the UK. From chocolate box pubs in villages to small city establishments, there is a lot of variation. The lease agreement and monthly rental fees of a bustling pub with bed and breakfast accommodation in the heart of the English countryside is going to be more than a small city pub that has less trade and no kitchen facilities. If you want to keep costs down whilst taking on a pub lease then you need to look to pubs with fewer overheads and in cheaper parts of the country. The upfront costs will be much lower if you choose small premises and you are likely to find good deals. There may be additional work required to provide marketing and drum up trade, however the financial rewards may be worthwhile.
When you take on a lease you are entering into a contract with the brewery or company who own the property. Whilst you are in charge of running the business, they continue to own the building and charge you a monthly rent for being there. This can be extremely beneficial for anyone who wants to own a pub and run a business but doesn’t have the large amount of capital necessary to buy one outright. There are some privately owned pubs in the UK but they are costly to purchase and there are not too many for sale at any one time so your choice of location is limited.
Because there are a large number of pubs available for lease in the UK then you can have your pick of location. If you want to stay rooted in one particular part of the country that is fine, if you want to look elsewhere you will have plenty of choice open to you. Aside from the monthly rental fee you will need to provide a deposit to the brewery which is refundable at the end of the tenancy (minus any outstanding payments to the brewery.) You will also need to purchase the stock and fixtures and fittings from the outgoing landlord and have enough working capital available to get the business off to a good start. There is a requirement of several thousand pounds therefore that needs to be available before you are able to become a pub tenant.
Having the brewery at your side however can ensure that your pub adventure is a successful one. At the end of the lease there will be the opportunity to extend too so you can keep growing and expanding your business. Pub leases give a much greater number of people the opportunity of living their dream. Finding pubs to rent is easy with the help of online search tools and the brewery will be on hand to provide help and advice when needed. If you want to manage a pub then taking a lease is the ideal solution. You can keep costs to a minimum by investing in smaller premises with fewer facilities in cheaper parts of the country.