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Pub Tenancy Deposits: How Much You’ll Pay & When You Get It Back

Last updated: 24 April 2026

Most people signing a pub tenancy assume the deposit is like a rental deposit on a flat — you pay it, you get it back at the end if you’ve done no damage. That’s not quite how it works in the pub industry, and the surprise can cost you thousands. When I took on Teal Farm Pub in Washington three years ago on a Marston’s CRP agreement, the deposit conversation was brief: here’s the sum, here’s the account it’s held in, here’s what happens if you breach your tenancy terms. What wasn’t explained was the grey area between “normal wear and tear” and “damage chargeable to you” — and that’s where most licensees get caught. This guide covers exactly how much a pub tenancy deposit is, what it actually covers, and the hard truth about getting it back.

How Much Is a Pub Tenancy Deposit in 2026?

Pub tenancy deposits typically range from £1,000 to £5,000, depending on the pubco, the pub’s turnover, and the tenancy type. On a standard Marston’s CRP (Community Rent and Profit) agreement like mine, the deposit sits around £1,500 to £2,500 for a wet-led pub doing 180 covers a week. For larger estate pubs or those with significant tied product obligations, you’ll be looking at £3,000–£5,000 or more.

Greene King, Stonegate, and Admiral Taverns all have different deposit bands. Some pubcos tie the deposit amount to your projected turnover or the value of stock you’re taking on. Others use a flat figure based on pub size. The worst scenario I’ve seen is when a pubco retroactively increases the deposit after you’ve signed — though this is becoming less common after the 2025 regulatory push for transparency in pubco agreements.

The deposit is held in a separate, ringfenced account. It is not your money to spend. It’s security. Think of it like a mortgage deposit, except the pubco holds it, not a conveyancer, and the rules around what triggers a deduction are much murkier. Before you sign anything, ask your pubco:

• What is the exact deposit amount and how was it calculated?
• Which account is it held in and can I see written confirmation?
• What specific breaches or scenarios trigger a deduction?
• What is the refund process and timeline if I leave with no breaches?

If you can’t get clear written answers to these four questions, you’re dealing with a pubco that isn’t taking this seriously. That’s a red flag for every other aspect of your tenancy too.

What Does a Pub Deposit Actually Cover?

A pub tenancy deposit is held as security against breach of your tenancy agreement, meaning the pubco can deduct costs for structural damage, damage to fixtures and fittings, outstanding rent, utilities, or tied product arrears. What it does not cover — and where the confusion lives — is routine maintenance, wear and tear, or failures caused by licensee negligence that fall short of deliberate damage.

Here’s what the pubco can legally claim against your deposit:

• Damage to the fabric of the building beyond normal wear (broken windows, damaged walls, roof leaks from neglect)
• Damage to fixtures and fittings you’re responsible for maintaining (broken pipes, damaged bar tops, non-working tills or EPOS systems)
• Outstanding rent, business rates, or utilities at the end of your tenancy
• Unpaid tied product invoices or unreturned kegs
• Cleaning or remediation costs if the pub is left in an unacceptable condition

What they should not claim:

• Routine wear and tear (scuffed paintwork, worn carpets from normal use)
• Maintenance costs you’ve logged in writing and the pubco failed to act on
• Damage caused by pubco negligence or failure to maintain the structure
• Stock shortfalls from till errors or shrinkage (unless you’ve breached stocktake procedures)
• Costs for work the pubco could have done during your tenancy

The problem is enforcement. If your pubco deducts £800 from your deposit for “carpet replacement,” and you have no photographs of the carpet condition on day one, you have almost no recourse. This is why documentation is everything — and why most licensees get partial rather than full deposit refunds. The pubco holds the cards. You need to change that balance through paperwork from day one.

When planning your pub profit margin calculator numbers before you sign, include the realistic assumption that you’ll lose 15–30% of your deposit to end-of-tenancy deductions. This is not cynicism. This is what happens in practice.

Will You Actually Get Your Deposit Back?

The honest answer: not all of it, and probably not without a fight. My experience and conversations with other licensed operators suggest that full deposit returns are the exception, not the rule. Most licensees get 60–85% back. Some get nothing.

The deductions fall into three categories:

Legitimate Deductions (Defensible)

Unpaid rent, utilities, or tied product arrears. If you owe the pubco money at the end of your tenancy, they will deduct it. No argument. You signed to that.

Reasonable Deductions (Often Disputed)

Repairs to damage the pubco says you caused. The problem here is the burden of proof lies with you to disprove the claim. If they say you damaged the cellar pipe and it cost £1,200 to fix, they will deduct it unless you have written evidence — ideally photographs and dated maintenance logs — showing the damage existed before you took the tenancy or was the result of pubco negligence.

Questionable Deductions (Fight These)

Cosmetic refresh costs, repainting, “professional cleaning,” or vague facility upgrades that the pubco frames as your responsibility. These are the ones to challenge. If you leave the pub clean and in reasonable condition, you should not be paying for a full repaint or carpet replacement unless you visibly damaged it.

The real issue is that most tenancy agreements use wording like “the premises must be returned in good decorative order and condition” — which is subjective. What the pubco considers “good condition” and what you consider “normal wear after 5 years” are often different things. This is where you lose money.

How Deposits Work on Different Pubco Agreements

Deposit terms vary significantly depending on which pubco you’re with and what type of agreement you sign. Here are the main ones you’ll encounter:

Marston’s CRP (Community Rent and Profit)

Deposits are typically £1,500–£2,500 for a standard wet-led pub. Held in a Marston’s account, not a third-party escrow. Deductions can be claimed for breach of tenancy, damage, or outstanding liabilities. The NSF audit (which I passed in March 2026) doesn’t directly affect the deposit, but it does set the baseline for what condition standards the pubco will enforce at end of tenancy. CRP agreements are relatively tight on deposit usage — the terms are clearer than some others — but the onus is still on you to document everything.

Greene King Tenancy

Deposits sit around £1,200–£3,000 depending on estate size. Greene King uses a similar model to Marston’s but deposits are sometimes held by a third party (like a solicitor’s client account) if you push for it. Ask for this in negotiation. It gives you legal protection if Greene King enters administration or goes into dispute with you over deductions.

Stonegate

Stonegate’s deposit model became more contentious after 2024. Deposits are held directly by Stonegate (not in escrow). Given the well-documented financial stress Stonegate faced in 2025–2026, there’s added risk that deposits could be called against liabilities if the company’s circumstances worsen. This is not theoretical. It’s a conversation you need to have before signing with Stonegate.

Admiral Taverns

Typically £1,500–£2,500. Held in Admiral’s account. Terms are generally clearer than Stonegate’s but less clear than Marston’s. Ask specifically about third-party holding if possible.

For any pubco agreement, the single question that matters most is: Is the deposit held in a third-party account (like a solicitor’s client account) or in the pubco’s own account? Third-party holding is significantly safer for you. Pubco account holding means if the pubco has cash flow problems, your deposit is at risk — not as a legal priority, but as a practical one.

Protecting Your Deposit: What to Document From Day One

The only practical defence against unfair deposit deductions is evidence. Your word against the pubco’s word is a match you’ll lose. Here’s what you must do on your first day as a licensee:

Video Walk-Through (Within 48 Hours)

Take a full-length video of the entire pub — cellar, bar, back office, toilets, storage, outside space. Walk slowly. Narrate what you see. Save it with a date stamp. Upload it to cloud storage (Google Drive, OneDrive) immediately so you have an independent timestamp. This single piece of evidence has protected more licensees from deposit disputes than anything else.

Photographic Log (Room by Room)

Take high-resolution photos of every wall, corner, pipe, fitting, and surface that could realistically be subject to a damage claim. Focus on the cellar (pipes, valves, shelving), the bar (tops, stools, fridges, EPOS terminal if provided), toilets, and any areas with pre-existing damage. Name the files with dates. Print them and keep a physical copy as well as digital.

Handover Document (Signed by Both Parties)

Ask your BDM or pubco contact to walk through with you on day one and sign off on a simple condition report. It doesn’t need to be formal — a one-page checklist will do. The point is getting the pubco to acknowledge, in writing, what condition the pub was in when you took over. If they refuse, that’s a data point too, and document it.

Maintenance Log (Digital or Paper, Updated Weekly)

Every time something breaks or needs maintenance — a leaking pipe, broken toilet handle, damaged skirting board, faulty light — log it with the date and what you reported to the pubco. Keep a screenshot of the email or note of the phone call. If a pubco tries to deduct repair costs at the end of your tenancy for something you’ve been reporting since month two, the log proves they were negligent in addressing it.

Most licensees don’t do this because it feels bureaucratic and you’re busy running a pub. But when you’re facing a £700 deduction for “cellar damage” and you have no evidence to contradict it, that log becomes worth thousands. The Pub Command Centre gives you real-time financial visibility from day one, including a place to track maintenance issues and costs — but even a simple Excel sheet or notebook will do.

What Happens to Your Deposit When You Leave

The endgame. You’ve given notice, your last day is in four weeks, and now you need to understand what happens to your deposit. Here’s the timeline:

Final Month: Prepare for Handover

Clean the pub thoroughly. Fix anything that’s broken and within your responsibility. Get any outstanding maintenance done. Most pubcos will do a walkthrough inspection in your final week — sometimes with you, sometimes without. If you can, be present. If they find damage and you’re not there to defend it or explain it, they’ll assume you caused it.

Handover Inspection

The pubco will conduct an inspection. They may provide a written report, or they may send you an email summary days later. Ask for a detailed written condition report signed by both parties. If they refuse or are vague, email them immediately: “Can you confirm in writing which items you are deducting from my deposit and the cost of each.” Create a paper trail.

Deduction and Notification (Typically 4–8 Weeks)

The pubco will calculate deductions and notify you. This is where disputes happen. If you disagree with a deduction, you have a window to challenge it — usually 14–28 days, depending on your tenancy agreement. Check your paperwork now to know your timeline.

Refund (If Any Remains)

What’s left after deductions is returned to your bank account. Expect 2–4 weeks for the transfer. Some pubcos are slow; others are quick. If the deposit refund doesn’t arrive within 8 weeks of your final day, chase it in writing. A missing deposit refund is money they’re holding that’s legally yours once deductions are satisfied.

The honest reality: the deposit conversation doesn’t end when you take over the pub — it ends when the money lands back in your account, six months or more later. This is why that video and photo log matter so much. If you have to challenge a deduction, you need evidence that survives scrutiny.

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