Pub companies have changed their approach to rent reviews to avoid referrals to the BII’s low-cost rent review dispute resolution service, according to a review of its first 12 months in operation, writes Paul Charity.
The Pub Independent Rent Review Scheme (PIRRS) has had 98 inquiries and 15 cases go “live” so far with five cases completed.
A review of the first 12 months said the initial surge in requests for information had decreased although activity on the PIRRS website remained consistent.
“This may be due to a wider industry understanding of the scheme, but is most likely also due to a change in pub companies approach to rent reviews,” the review said.
Two of the five cases completed wholly via the PIRRS have seen tenants representing themselves. “Critics claim that for tenants to use the scheme effectively they must seek representation which undermines the low cost nature of the scheme.
“However PIRRS have been made aware, although not quantitatively, that the cases in which the tenant represented themselves resolved in favour of the tenant.
“The PIRRS has maintained that this is unnecessary, and advises tenants who state that they feel they require assistance to seek it from membership organisations such as BII who have assisted at no additional charge.
"However further debate as to how the process can be simplified for tenants should be considered.
“Industry representative for the scheme Phil Dixon has also, where appropriate, actively offered guidance to individual licensees on the pros and cons of the scheme.”
It said feedback had been “good” and any strategic issues had been addressed by the PIRRS board. The time taken to complete a case “can vary dramatically” and “essentially hinges upon the quality of the information provided by both parties at application, and the speed with which both parties manage any complications which arise”.
It added: “A model case example was processed in just under four months indicating that this can be a speedy resolution process.”
Neil Robertson, BII chief executive, said: “The Rent Review Service (PIRRS) has been established through the co-operation of the representative bodies of both the pub owning companies and tenants and leaseholders and shows what can be achieved through the industry working together for its mutual benefit.”
