Rent Review

[gone up the hill]

So just to carry the thread on what’s thoughts on fbt rent now?

AD plants around here are offering £250 acre rent + you either keep the BPS payment or they pay the BPS payment value on top of the £250 acre and claim the BPS themselves!

Dairy farmers looking for Maize ground will easily pay £150/80 acre rent + the landowner claims the BPS or again the dairy farmer pays the BPS value and claims it themselves!

 

[David.]

We recently had a look round one of the farms mentioned here, where the tenant has chosen to walk (9 yrs into a 21 yr FBT) after the landlord was seeking another increase. At the time it was let, the talk was that it was @£170/ac, for 200ac of steep rundown pp rising to 1200’.
It has now been relet to a neighbour, at a reduced rent (sub £100/ac) for several years, in leu of getting it back into reasonable order. The new tenant told me he’d spent £40k on fencing materials so far, and a hell of a lot on lime!
The Landlord would have been far better off taking less for it in the first place, leaving the original tenant enough to ‘farm’ it properly, and not have the costs of reletting it so soon, or having presumably wiped out the capital of the tenant.

A very short sighted view by the landlord/his agent IMO.

Landlords reap as they sow, eventually.
They also usually end up with the tenants they deserve.

 

[Lincsman]

We recently had a look round one of the farms mentioned here, where the tenant has chosen to walk (9 yrs into a 21 yr FBT) after the landlord was seeking another increase. At the time it was let, the talk was that it was @£170/ac, for 200ac of steep rundown pp rising to 1200’.
It has now been relet to a neighbour, at a reduced rent (sub £100/ac) for several years, in leu of getting it back into reasonable order. The new tenant told me he’d spent £40k on fencing materials so far, and a hell of a lot on lime!
The Landlord would have been far better off taking less for it in the first place, leaving the original tenant enough to ‘farm’ it properly, and not have the costs of reletting it so soon, or having presumably wiped out the capital of the tenant.

A very short sighted view by the landlord/his agent IMO.

Did the original tenant offer £170 was was he at gunpoint?

 

[neilo]

Did the original tenant offer £170 was was he at gunpoint?

It was an open tender, so presumably offered what he felt was necessary (certainly not what the place would ever earn).

 

[Surgery]

It was an open tender, so presumably offered what he felt was necessary (certainly not what the place would ever earn).

🛎 end

 

[chipchap]

The trouble with some hero offering unsustainable rents is the upward pressure it puts on all rents locally.

 

[neilo]

The trouble with some hero offering unsustainable rents is the upward pressure it puts on all rents locally.

Agreed, but if they don’t tender an unsustainable rent then they don’t get it, or anywhere else. Stuck between a rock and a hard place.

 

[ollie989898]

We recently had a look round one of the farms mentioned here, where the tenant has chosen to walk (9 yrs into a 21 yr FBT) after the landlord was seeking another increase. At the time it was let, the talk was that it was @£170/ac, for 200ac of steep rundown pp rising to 1200’.
It has now been relet to a neighbour, at a reduced rent (sub £100/ac) for several years, in leu of getting it back into reasonable order. The new tenant told me he’d spent £40k on fencing materials so far, and a hell of a lot on lime!
The Landlord would have been far better off taking less for it in the first place, leaving the original tenant enough to ‘farm’ it properly, and not have the costs of reletting it so soon, or having presumably wiped out the capital of the tenant.

A very short sighted view by the landlord/his agent IMO.

I would sooner have a more sensible rent and know the guy on the place would look after it and maintain it. I know of one farm where this did not happen and the materials and labour alone to bring the sheds and infrastructure right would be mind boggling money.

 

[neilo]

I would sooner have a more sensible rent and know the guy on the place would look after it and maintain it. I know of one farm where this did not happen and the materials and labour alone to bring the sheds and infrastructure right would be mind boggling money.

I did say this to our landlord’s agent (who has just had to let that farm at a cheap rent) but he didn’t seem to be able to grasp it.
Farm tenants are merely stewards of the landlord’s capital asset, so surely makes sense to have someone that looks after or improves that asset’s value?

 

[glasshouse]

I did say this to our landlord’s agent (who has just had to let that farm at a cheap rent) but he didn’t seem to be able to grasp it.
Farm tenants are merely stewards of the landlord’s capital asset, so surely makes sense to have someone that looks after or improves that asset’s value?

They cant grasp much

 

[glasshouse]

I would sooner have a more sensible rent and know the guy on the place would look after it and maintain it. I know of one farm where this did not happen and the materials and labour alone to bring the sheds and infrastructure right would be mind boggling money.

Landlords should carry out all the maintainance, but they never do

 

[neilo]

Landlords should carry out all the maintainance, but they never do

That surely depends on the tenancy agreement, signed by both parties.

 

[glasshouse]

That surely depends on the tenancy agreement, signed by both parties.

No, any such agreement that seeks to evade a landlords responsibilities should be set aside.

 

[neilo]

No, any such agreement that seeks to evade a landlords responsibilities should be set aside.

Probably, but willing tenants agree to those terms when they sign the agreement.

 

[glasshouse]

Probably, but willing tenants agree to those terms when they sign the agreement.

They have no choice, they should be outlawed

 

[chipchap]

They have no choice, they should be outlawed

Nobody forces anybody to sign a tenancy agreement.

It is a free World, or at least it is in Western Europe

 

[glasshouse]

Nobody forces anybody to sign a tenancy agreement.

It is a free World, or at least it is in Western Europe

Yawn
No one forces anyone to eat food either, but you sort of have to.

 

[Formatted]

Farm tenants are merely stewards of the landlord’s capital asset, so surely makes sense to have someone that looks after or improves that asset’s value?

In what heart the land is in generally doesn't effect its capital value, how good the fencing is for example is not why land has risen 400% since 2001...

 

[sodbuster]

Surely it's all relevant to what you get for the rent. If it's purely bare land then 15% might be a bit steep. There are some farms round me pay 60ac and for that they have sfp, big farmhouse and a row of cottages. 15% is nothing in that scenario. I always say suck it up boys if the farm was to be re-let today it would be double

 

[glasshouse]

Surely it's all relevant to what you get for the rent. If it's purely bare land then 15% might be a bit steep. There are some farms round me pay 60ac and for that they have sfp, big farmhouse and a row of cottages. 15% is nothing in that scenario. I always say suck it up boys if the farm was to be re-let today it would be double

But Aha farms cannot be re let, so that arguement isnonsense