MRO LEASE 2025: WHAT SHOULD TENANTS DO & HOW CAN MDE PUB CONSULTANTS HELP? 

If you’re a pub tenant tied to a large pub company, you might be wondering if there’s a better way to run your business in 2025. The Market Rent Only (MRO) option could be your answer. It’s a right under the Pubs Code that lets you request a free-of-tie lease. This means you could have more freedom to choose your suppliers, potentially reduce pub beer costs, and boost your profits. But switching to an MRO lease is a big step. It involves understanding your pub tenant rights and navigating what can seem like a complicated process. That’s where getting expert pub lease advice from industry experts like MDE Pub Consultants can make all the difference. 

What Exactly is a Market Rent Only (MRO) Lease? 

Simply put, an MRO lease means you can break free from buying all your beer and other tied products directly from your pub company. This usually happens when it’s time for a pub rent review or pub lease renewal. 

Instead of the usual tied arrangement, you’d pay a fair market rent for the pub, similar to what you’d pay if it was always a free-of-tie pub lease. The goal of the Pubs Code rules here is to make sure you’re no worse off than if you were already free-of-tie. While it sounds great, the process of getting an MRO lease and agreeing on the terms needs careful handling. 

Key Considerations for Tenants Before Switching to MRO in 2025 

Deciding to go for an MRO lease isn’t just a quick switch. Here’s what you need to consider: 

1. The MRO Procedure: The process involves formal notices and detailed negotiations with your PubCo. This can be a time-consuming and legally complex journey, often taking 6-8 months in England and Wales. Expert pub lease help is often needed. 

2. Will it Pay Off? A thorough financial analysis is crucial. While the prospect of sourcing cheaper supplies is attractive, you must compare the proposed MRO rent against your current tied rent and assess the overall impact on your overall business. Look closely at your pub tenancy agreements for all the details. 

3. What are the Costs? Engaging with the MRO process can incur costs, particularly if pub lease disputes arise and the Pubs Code Adjudicator is required. It’s important to budget for professional advice to guide you.  

4. Running Your Pub Free-of-Tie: Operating free-of-tie means you’ll be in charge of finding all your own suppliers and managing stock. This gives you more control but also means new responsibilities. Considering this is part of good pub business strategic planning. 

5. A Stronger Negotiating Hand: Starting the MRO process can give you more power when discussing your current tied terms. It can be a tool for better pub rent negotiation. 

6. Your Pub Company Relationship: The Pubs Code is there to ensure fairness, but it’s good to think about how these discussions might affect your day-to-day relationship with your pub company. 

7. What’s New in 2025? Keep an eye on any updates or key focus areas from the Pubs Code Adjudicator (the body that oversees the Code). Being aware of current pub lease legislation and guidance is important 

8. Knowing Your Rights: The Pubs Code gives you important pub tenant legal rights. Understanding these, especially around MRO, rent discussions (Pubs Rent Review), and the information your pub company must provide, is vital. 

Read More: Fighting for True Free-of-Tie Freedom Case 

How MDE Pub Consultants Can Make the MRO Process Smoother  

Trying to figure out the MRO lease alone can be tough. MDE Pub Consultants specialises in helping pub tenants across the UK. They offer industry consultancy and are very experienced with pub lease negotiations, rent reviews, and everything to do with the Pubs Code in the UK, including guidance on the Scottish Pubs Code for tenants in Scotland. 

Here’s how MDE Pub Consultants can provide practical pub lease support:  

• Clear Guidance Through the MRO Process: MDE Pub Consultants offers the entire MRO process for pub tenants, from sending the first notice to negotiating the lease terms, and representing you if disagreements need settling. As your pub lease consultant, they simplify the complex. 

• Strategic Advice and Financial Analysis: They help you look at the MRO offer properly, compare it to your current situation, and figure out what’s best for your pub’s finances.  

• Expert Negotiators on Your Side: With a balanced perspective gained from working with both tenants and pub companies, MDE Pub Consultants can effectively negotiate with PubCos to secure fair rent negotiations for pubs or leverage the MRO option for a better tied deal, potentially leading to a significant rent reduction for pubs. 

• Explaining Your Rights Clearly: They cut through the jargon to make sure you understand your rights under the  Pubs Code and what your pub company should be doing. You’ll get straightforward pub tenancy advice. 

• Challenging Unfair Terms: MDE Pub Consultants has a proven track record in challenging excessive rent demands and ensuring that MRO-compliant leases are fair and reasonable, providing crucial assistance with pub rent reviews. 

• Up-to-Date for 2025: MDE Pub Consultants keeps on top of all Pubs Code changes and official guidance, so your advice is always current, helping you with Pubs Code compliance. 

• Dispute Resolution: While they’re not a law firm, MDE Pub Consultants gives expert advice if you face pub lease disputes or issues around the pub rent reduction process. They aim to solve problems and can help you prepare if an issue needs to go to arbitration under the Pubs Code. 

Michael Erridge, founder of MDE Pub Consultants, says: 

“The Market Rent Only lease is a really important choice for tied pub tenants who want more control and a fairer deal. But it’s a big decision. In 2025, it’s more important than ever for tenants to be well-informed. At MDE Pub Consultants, our job as specialist Pubs Code Consultants is to give tenants clear pub tenant rent advice and the strong support they need to get through the MRO process successfully.” 

Before making the switch, it’s a good idea to get advice from a pub lease expert to understand the nuances of the process for a more profitable and independent pub business. To talk about your MRO lease in confidence and find out how MDE Pub Consultants can provide pub lease help, get in touch at: 

Email: info@mdepc.co.uk

Phone: 0330 088 3133