A survey commissioned by the Pubs Code Adjudicator has revealed that 72% of tied pub tenants are aware of the Pubs Code after 18 months - but their level of understanding of it is low.
The survey reveals that 63% of tenants are aware of their right to a five yearly rent review - but only 36% feel they are able to make informed decisions about the ode, and only 36% know of their right to request an MRO.
The role of a good business development manager (BDM) was highlighted as important to successful tenant-landlord relationship.
Tenants said they needed access to the right information to make a genuine choice, with 26% who said they experienced an MRO event but did not request an MRO did not know they could.
Meanwhile 55% of tenants do not feel they have a genuine choice when it comes to the Pubs Code.
Brigid Simmonds, chief executive of the British Beer and Pub Association, said: “A majority also stated that the relationship with Business Development Managers continues to demonstrate real value. The findings show that some tenants are not aware of specific elements of the Code and the role of the Adjudicator. It is clear that the PCA has a role to play in expanding knowledge, awareness and clarity.
“It is important to acknowledge that the first set of results account for a period in which tenants and pub owning companies were adapting to a new and complex system of regulation. There was no transition or implementation period for the Code, so it is inevitable that new processes and relationships have taken time.”
