Rent Review

[Yorkshire lad]

We have some land that we rent on an AHA is up for a review this year. It's typical heavy land so not suitable for roots ect . The landlord has appointed a new agent one of the large national ones. He came to view the land last week and said they were looking for an increase of about 15%
It will be interesting to see how he justifies an increase when BPS is reducing
What are other people finding rents are doing?

 

[Jon]

My Landlord has served me with a section 12 for this year.
I'm intrigued as to their thoughts.

 

[Farmer_Joe]

ha ha i would be willing to give it up if i were you that seems a bit rich?

can you really justify it and reasonably make money for you time with that increase, if no let it go

 

[David.]

Of course, 15% on £65 wouldnt be too onerous....

 

[kiwi pom]

We have some land that we rent on an AHA is up for a review this year. It's typical heavy land so not suitable for roots ect . The landlord has appointed a new agent one of the large national ones. He came to view the land last week and said they were looking for an increase of about 15%
It will be interesting to see how he justifies an increase when BPS is reducing
What are other people finding rents are doing?

I suppose it all depends what you're paying now.
I think Clive is trying to get the input industry to behave by having an online buying group for the cheapest deals and have everyone state what they pay to get some transparency in the industry.
Perhaps everyone should put their rent deals on here to compare and try and put these land agents out of business.
Get landowners dealing direct with their tenants.

 

[Surgery]

I suppose it all depends what you're paying now.
I think Clive is trying to get the input industry to behave by having an online buying group for the cheapest deals and have everyone state what they pay to get some transparency in the industry.
Perhaps everyone should put their rent deals on here to compare and try and put these land agents out of business.
Get landowners dealing direct with their tenants.

Christ , what are you trying to achieve ?

just think of all the salmon pink trousers that would go unsold if landlords and tenants felt with each other !

 

[ARW]

I find it somewhat amusing
The agent doesn’t want the farmer to rape the land and invest in it, yet is happy to rape the farmer, leaving him no choice to rape the land

 

[midlandslad]

We have some land that we rent on an AHA is up for a review this year. It's typical heavy land so not suitable for roots ect . The landlord has appointed a new agent one of the large national ones. He came to view the land last week and said they were looking for an increase of about 15%
It will be interesting to see how he justifies an increase when BPS is reducing
What are other people finding rents are doing?

It all depends where the rent is to start with. If it is only £50 then 15% increase probably isn’t that bad. If it is £75/£80 then it is hard to justify.

 

[Surgery]

If there’s any time for rent reductions it’s now , let’s be honest it’s never going to be easier for a tenant to show poorly drained areas , beginning of the end of sfp , significant landlord expense on buildings , the boot is firmly on our foot , agents are bound to club together scare mongering with rent reviews etc , beet them to it and serve your own

 

[midlandslad]

The TFA were advising tenants to serve notices as they saw little opportunity for an upside in rents and a strong argument for a downside. Over the last 15 years rents have only gone one way. The tide is turning.

 

[kiwi pom]

Christ , what are you trying to achieve ?

just think of all the salmon pink trousers that would go unsold if landlords and tenants felt with each other !

It would be a terrible thing alright.
They do nothing different than chemicals sales people or machinery dealers though. All smoke and mirrors and trying to squeeze more money out of farmers.
I bet a lot of the rent deals they say they've achieved are quite different to what people actually pay.
Might help people if they actually new what everyone's rents were?

 

[midlandslad]

With openly marketed land, it is the tenants that set the bar. What I often hear is that when land is let the agent will only take the tenders of the pet clients to the landlord!!

 

[neilo]

The TFA were advising tenants to serve notices as they saw little opportunity for an upside in rents and a strong argument for a downside. Over the last 15 years rents have only gone one way. The tide is turning.

Our landlord’s agent is stilling pushing for rent increases, even where high rents are already being paid. I haven’t heard of many that have put up much of a fight over it either, surprisingly, although I heard the other day that one sheep & beef man had told him to ‘stick his effing farm’ and handed in his notice.

Of course, where a high rent paid by one tenant, then supplies the comparables to drive the next.

I was full & ready to go to arbitration when his opening shot had mentioned a doubling. In the end, we agreed a small increase too, albeit from a low rent (for an FBT). I’m buggered if I’m going to pay an open market rent on the basis of the improvements that I’ve spent a fortune on doing here, it’s based on the condition of the farm (semi-derelict) before tenants improvements, and they need reminding of that.

 

[super4]

We have some land that we rent on an AHA is up for a review this year. It's typical heavy land so not suitable for roots ect . The landlord has appointed a new agent one of the large national ones. He came to view the land last week and said they were looking for an increase of about 15%
It will be interesting to see how he justifies an increase when BPS is reducing
What are other people finding rents are doing?

He will settle for a 5% increase knowing he has locked you in for another 3 yrs.

 

[midlandslad]

Our landlord’s agent is stilling pushing for rent increases, even where high rents are already being paid. I haven’t heard of many that have put up much of a fight over it either, surprisingly, although I heard the other day that one sheep & beef man had told him to ‘stick his effing farm’ and handed in his notice.

Of course, where a high rent paid by one tenant, then supplies the comparables to drive the next.

I was full & ready to go to arbitration when his opening shot had mentioned a doubling. In the end, we agreed a small increase too, albeit from a low rent (for an FBT). I’m buggered if I’m going to pay an open market rent on the basis of the improvements that I’ve spent a fortune on doing here, it’s based on the condition of the farm (semi-derelict) before tenants improvements, and they need reminding of that.

Yes, these improvements very often get overlooked.

Unfortunately when it comes to rents we are our own worst enemies.

 

[Yorkshire lad]

We are paying more than £65. This type of land locally on a Fbt is the Bps as the rent
All the agent talked about was wheat at £200 ton Also the Landlord was looking for a return on their investment
I replied that as the landlord was left this land 200 years ago then £20 acre would be a handsome return
I can’t make my mind up if the agent is trying to justify his fee or if they are hoping I’ll tell them to shove it then sell it There was some sold over the hedge last year for £6k

 

[midlandslad]

We are paying more than £65. This type of land locally on a Fbt is the Bps as the rent
All the agent talked about was wheat at £200 ton Also the Landlord was looking for a return on their investment
I replied that as the landlord was left this land 200 years ago then £20 acre would be a handsome return
I can’t make my mind up if the agent is trying to justify his fee or if they are hoping I’ll tell them to shove it then sell it There was some sold over the hedge last year for £6k

That sounds plenty for some heavy land. Quoting £200/t is useless as you can’t get that on the futures for the next 3 years at the moment.

Make sure you have a proper tenants agent. When is the rent review date?

 

[Formatted]

What's the starting point? FBT rents for permanent pasture are £140 an acre

www.tfa.org.uk will always be your best source of information.

 

[neilo]

What's the starting point? FBT rents for permanent pasture are £140 an acre

www.tfa.org.uk will always be your best source of information.

There are tenants locally paying plenty more than that, and you can see the farms going downhill. The poor buggers are working like slaves and it still leaves no money for upkeep of the landlord’s asset, which gradually gets fecked.

It’s a very short sighted view by the agents imo.

 

[Formatted]

It’s a very short sighted view by the agents imo.

It is but it's the landlord's asset and if they want to charge top rents they should have a right to, this isn't Russia or China under Stalin and Mao. Maybe I'm bitter as I am the sod who's got the only FBT on an estate where everyone else is on AHA's.