Industry sector:

Public house: Rent

If you are a free trader and own your own pub you will not pay rent, so there is no need to enter anything here.

If you are a tenant/lessee your landlord will charge you a rent, which may be payable weekly, fortnightly or monthly, depending on the terms of your agreement.

There are a number of ways in which the rent can be calculated, such as:

  • as a percentage of estimated annual turnover
  • on a barrelage basis - the estimated number of barrels bought during the year is multiplied by a per barrel rate
  • as a percentage of net profit
  • as a percentage of the market value of the pub

The licensed property agent/valuer will be able to help you with this, but as a broad rule of thumb annual rents can be between 8% and 15% of turnover, depending on the location and popularity of the pub.

The rent may be reviewed at periodic intervals.

You should enter in your cash flow forecast the amount of rent you estimate you will have to pay - bear in mind that you may be required to pay several months in advance.