Pubs Independent Rent Review Scheme (PIRRS)
Why Does PIRRS Exsist?
Most property leases and tenancy agreements state that if landlords and tenants can’t agree on new rent, the issue must go to Arbitration or an Independent Expert. While these processes function well in the commercial sector, they can be time-consuming, costly, and require specialist knowledge.
It was feared that tenants were often agreeing the rentals set before them by their landlords simply because they couldn’t financially afford to do otherwise.
In 2008, the Pubs Independent Rent Review Scheme (PIRRS) was established to offer a cost-effective method for resolving rental disputes in the industry.
Rent is determined by an independent expert chosen by the tenant from the PIRRS panel, with the tenant’s choice being final unless conflicts of interest arise.
The cost for the tenant ranges from £1,650 to £3,000 plus VAT, along with a £125 administration fee. PIRRS is now governed by the Pub Governing Body (PGB).
PIRRS is the trading name of Pubs Independent Rent Review Scheme. A private company limited by guarantee, registered in England and Wales, Company No. 7162516,
Apply for PIRRS Here
Procedure Papers
The PIRRS (Pub Independent Rent Review Scheme) procedure papers guide pub tenants and pub-owning companies in a fair rent review process. They detail evidence gathering, information requirements, and the evaluation by an independent assessor. The goal is to ensure transparency, minimize disputes, and provide a quicker, cost-effective alternative to formal arbitration, facilitating reasonable rent agreements.
PIRRS Independent Experts
PIRRS independent experts are impartial professionals appointed to review the evidence provided by both the pub tenant and the pub company during a rent dispute. Their role is to deliver a fair, unbiased rent assessment that helps both parties reach a transparent and balanced agreement.
How Much Does It Cost?
The fee structures of PIRRS Independent Experts are based upon the passing rent of the licensed premises when entering into the PIRRS procedure. Should a reasoned Determination be required this will increase the Independent Expert’s charges quoted below in each case by £2,000 plus VAT.
London Side of M25
Passing rent Under $40,000 p.a.
Passing rent Over $40,000 p.a.
England & Wales Outside M25
Passing rent Under $40,000 p.a.
Passing rent Over $40,000 p.a.
Scotland
Passing rent Under $40,000 p.a.
Passing rent Over $40,000 p.a.
Payments can be made via BACS, please contact the PIRRS team for further information.
Reasoned Determination
PIRRS Independent Experts will, if required by either or both the parties, provide reasoned Determinations. If a reasoned determination is required this must be clearly identified and paid for prior to the Independent Expert making their inspection of the premises. The price of a PIRRS Reasoned Determination is £2000 (+VAT).
Find Out More About Reasoned Determination
It is not usual for an Independent Expert to provide the reasoning behind their rental Determination figure but, in response to demand, the PGB has now provided that PIRRS Independent Experts will, if required by either or both the parties, provide reasoned Determinations. If a reasoned determination is required this must be clearly identified and paid for prior to the Independent Expert making their inspection of the premises.
The additional cost of this is:
£2000 (+VAT)
It will be left to the landlord and the tenant to decide how this fee should be apportioned between them. If the parties cannot agree on such apportionment a reasoned Determination will not be provided.
Reasons given by Independent Experts in a PIRRS Reasoned Determination will be less extensive than those written by Arbitrators in a reasoned Award, not least because there is no obligation upon an Independent Expert to deal with all the arguments put forward by the parties.
A reasoned Determination will usually contain both a calculation and comments as to how such calculation has been arrived at but the extent of such comments will be at the Independent Expert’s absolute discretion and he will not subsequently expand on them further.
It is important to understand that an Independent Expert will under such circumstances provide reasoned Determinations to both the parties notwithstanding whether or not each has contributed to the additional cost involved.
How to Apply to PIRRS
To apply to PIRRS, the initiating party must fill out the tenant or landlord application form, providing details about the rent review dispute and agreeing to the PIRRS process. After submitting the correct form and signed declaration, an independent expert will be appointed to assess the case.
Alongside submitting the PIRRS application, both parties must sign a declaration confirming that all other resolution routes have been exhausted and that they waive any right to arbitration or appeal. They also accept that the independent expert’s final rent valuation is confidential, cannot be challenged, and that the PIRRS is not liable for any dispute with the chosen valuer.
The PGB Group
The Pub Governing Body Ltd group is made up of three separate and distinctive schemes/companies:
PGB
Overall governance body, responsible for establishing minimum standards of practice & case protocols for PIRRS & PICA-Services
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PICA-Services
Pub Independent Conciliation & Arbitration Services; a dispute resolution service for tied tenants/lessees.
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PIRRS
Pub Independent Rent Review Scheme; a rent dispute resolution procedure for tenants/leeses.