Farm Cottage rents

[kfpben]

We have a farm cottage where the current tenants are leaving us after 5 years.

One bed bungalow with kitchen, living room, bathroom. Fully refurbished 5 years ago and will be repainted in between tenants. It’s in our fairly clean arable yard and has its own garden. Subject to an AOC. In a very quiet rural area of Hampshire.

Any thoughts on rent levels? Would rather not go through the full estate agent process if possible. The current tenants have been on a very favourable rate but I’m keen to get a bit more now.

 

[ollie989898]

We have a farm cottage where the current tenants are leaving us after 5 years.

One bed bungalow with kitchen, living room, bathroom. Fully refurbished 5 years ago and will be repainted in between tenants. It’s in our fairly clean arable yard and has its own garden. Subject to an AOC. In a very quiet rural area of Hampshire.

Any thoughts on rent levels? Would rather not go through the full estate agent process if possible. The current tenants have been on a very favourable rate but I’m keen to get a bit more now.

Will vary according to the area and local demand, surely?

I'd sooner have a lower rate of rent if it meant a happier and steadier tenant if you know what I mean.

 

[Farmer 059]

So many factors make up a rent. Do tenants pay utilities and council tax? May be not the latter if on a AOC. Is it on an assured short hold tenancy? If so, are you serving the prescribed information, registering any deposit and providing relevant safety certs? 175 rules and regulations apply to lettings so that is why a qualified agent is essential imo. demand is high and rents strong, in our area, depending on the setting you describe, and with tenants paying utilities and council tax, would be £750-£800 per month. Rents higher as you get further south

 

[Wurzeetoo]

I personally do a quick search on Rightmove for going rents, will give you an idea of prices. I’ve been pleasantly surprised several times

 

[kfpben]

I personally do a quick search on Rightmove for going rents, will give you an idea of prices. I’ve been pleasantly surprised several times

It’s the ag tie element that skews things a little. They have been on £650 month plus bills, but I would hope for quite a bit more.

 

[kfpben]

So many factors make up a rent. Do tenants pay utilities and council tax? May be not the latter if on a AOC. Is it on an assured short hold tenancy? If so, are you serving the prescribed information, registering any deposit and providing relevant safety certs? 175 rules and regulations apply to lettings so that is why a qualified agent is essential imo. demand is high and rents strong, in our area, depending on the setting you describe, and with tenants paying utilities and council tax, would be £750-£800 per month. Rents higher as you get further south

Last time as the tenants worked in the farm diversification we just used an agent to draw up the contract and keep hold of the deposit for a nominal fee.
I can do the advertising and property management.

 

[suffolksmallholder]

Airbnb party pad?
SS

 

[ollie989898]

Airbnb party pad?
SS

Hot tub.. tick

 

[Doing it for the kids]

It’s the ag tie element that skews things a little. They have been on £650 month plus bills, but I would hope for quite a bit more.

Thought it was about 1/3rd off market value?

 

[theboytheboy]

Openrent has a rent calculator that is pretty good

 

[Bongodog]

Thought it was about 1/3rd off market value?

Perhaps if you can find a tenant that meets the restriction.

 

[Still Farming]

Always down sides.
Hot wired cannabis factory, sub let again nonsense, pay 0ne month and cant get them out lot,etc etc .
Take care out there ,some wize ones about.

 

[ollie989898]

Always down sides.
Hot wired cannabis factory, sub let again nonsense, pay 0ne month and cant get them out lot,etc etc .
Take care out there ,some wize ones about.

Ask for two months rent up front as deposit?

 

[Still Farming]

Ask for two months rent up front as deposit?

New assured short tenancy laws means that anyhow with bonds and deposits but worthless if property is trashed or Court fees to evict them possibly.

 

[farmerm]

A property with an ag tie needs an suitable occupant but a suitable occupant who is actively looking for a home doesnt need a property with an ag tie...

In most areas there are a shortage of properties and an abundance of prospective tenants. In the current climate I would be tempted to start off pretty much full market rate and see who comes forward... Key to finding a good tenant paying the best rent will be getting it out to as many potential tenants as possible... Mention the property to any contact and supplier you speak to with connections to agriculture, someone may know someone it would suit at a price you might both agree on.. Make use of the local farming facebook groups listed at full price but with indication you are open to negotiations... only when you start to get serious offers can you really get to know what the market is willing to pay.

Note that the precise wording on your AOC is important as they can vary who is eligible...

Looking on Right Move today I thought Shropshire was getting expensive when I see a semi-rural shoe box 2 bed bungalow @ £995pcm, but in your part of the world the 1 bed shoe box bungalows start £1100pcm... From the description yours must be worth that even with the ag tie.

 

[ollie989898]

A property with an ag tie needs an suitable occupant but a suitable occupant who is actively looking for a home doesnt need a property with an ag tie...

In most areas there are a shortage of properties and an abundance of prospective tenants. In the current climate I would be tempted to start off pretty much full market rate and see who comes forward... Key to finding a good tenant paying the best rent will be getting it out to as many potential tenants as possible... Mention the property to any contact and supplier you speak to with connections to agriculture, someone may know someone it would suit at a price you might both agree on.. Make use of the local farming facebook groups listed at full price but with indication you are open to negotiations... only when you start to get serious offers can you really get to know what the market is willing to pay.

Note that the precise wording on your AOC is important as they can vary who is eligible...

Looking on Right Move today I thought Shropshire was getting expensive when I see a semi-rural shoe box 2 bed bungalow @ £995pcm, but in your part of the world the 1 bed shoe box bungalows start £1100pcm... From the description yours must be worth that even with the ag tie.

Hampshire is the location involved so I would agree it must be worth the stiffer end of the market.

 

[Still Farming]

A property with an ag tie needs an suitable occupant but a suitable occupant who is actively looking for a home doesnt need a property with an ag tie...

In most areas there are a shortage of properties and an abundance of prospective tenants. In the current climate I would be tempted to start off pretty much full market rate and see who comes forward... Key to finding a good tenant paying the best rent will be getting it out to as many potential tenants as possible... Mention the property to any contact and supplier you speak to with connections to agriculture, someone may know someone it would suit at a price you might both agree on.. Make use of the local farming facebook groups listed at full price but with indication you are open to negotiations... only when you start to get serious offers can you really get to know what the market is willing to pay.

Note that the precise wording on your AOC is important as they can vary who is eligible...

Looking on Right Move today I thought Shropshire was getting expensive when I see a semi-rural shoe box 2 bed bungalow @ £995pcm, but in your part of the world the 1 bed shoe box bungalows start £1100pcm... From the description yours must be worth that even with the ag tie.

Unless trying to rent to non agri for given time to lift clauses possibly????

 

[farmerm]

Unless trying to rent to non agri for given time to lift clauses possibly????

I think if trying to remove the tie the recommendation is to have 3 formal red book rental valuations and demonstrate you have market it both locally and nationally for usually 12 month period at the correct price without any proceedable offer..

 

[Wink]

Would you be able to utilise it as part of a package for a farm worker? I'm sure in previous posts you mentioned you had staff?

 

[Farmer 059]

Ask for two months rent up front as deposit?

Law only allows max of 5 weeks rent for deposit and it has to be lodged in an approved scheme or tenant can claim up to 3 months rent.