Repair & Maintenance Tenancies

Sacha

New Member
I am after some advice on taking on a small farm on a repair and maintenance tenancy. I want to benchmark my rent offer as obviously I need to take into account any possible repairs to the buildings over the term. (house looks in pretty reasonable condition so I am hoping not so much will need to be done there). I am trying to balance offering a competitive rent offer against the risks of such a tenancy and the normal tenancy per acre prices I can find are not on a repair and maintenance tenancy.
If anyone could give me some guidance on ball park figures for livestock holding tenancy I would be very grateful.
 

Formatted

Member
Livestock Farmer
Most tenancies are repair and maintenance, aren't they? Which is why you won't find separate figures. Add a budget line into your budget for repairs and maintenance, reduce your rent accordingly. Be wary of taking on older buildings that do not have any value to you but you are still required to maintain them.
 

Sacha

New Member
As I understand it most tenancies the landowner is responsible for major structural items and the tenant responsible for the rest. But on a full repair, insurance and maintenance, the tenant is responsible for everything. The agent was very careful to point this out. I missed out the word insurance which I think is the key.
I did find this as an example - By entering into an FRI lease the tenant takes on complete responsibility for repairs, even if:

  • that tenant was not responsible for the state of repair of the premises from the outset of the lease, or
  • if the disrepair already existed when the lease was granted.
 

spitfire

Member
Location
wales
I am after some advice on taking on a small farm on a repair and maintenance tenancy. I want to benchmark my rent offer as obviously I need to take into account any possible repairs to the buildings over the term. (house looks in pretty reasonable condition so I am hoping not so much will need to be done there). I am trying to balance offering a competitive rent offer against the risks of such a tenancy and the normal tenancy per acre prices I can find are not on a repair and maintenance tenancy.
If anyone could give me some guidance on ball park figures for livestock holding tenancy I would be very grateful.
Best thing to do is get a schedule of condition done at the outset then any improvements can be claimed for.
 

Mc115reed

Member
Livestock Farmer
You want somebody with a brain too check every building over carefully... last thing you want is too take it on and a week into the tenancy the landlord say yeah.... “that building over there looks like it’s roof is coming in..” then you find out it’s got an asbestos roof aswell and before you know it youv a £10k roofing bill for a building the day you move on farm
 

redsloe

Member
Location
Cornwall
You want somebody with a brain too check every building over carefully... last thing you want is too take it on and a week into the tenancy the landlord say yeah.... “that building over there looks like it’s roof is coming in..” then you find out it’s got an asbestos roof aswell and before you know it youv a £10k roofing bill for a building the day you move on farm
Hmm, not much future in that tenancy with a landlord like that!
 

chipchap

Member
Mixed Farmer
Location
South Shropshire
Depending on the wording of the agreement, you may be taking on the responsibility of not only repair, but also restoring items that are not currently in a good state of repair. Be careful. If this is the case I would personally insist the landlord is responsible for any repairs needed at the start, and the tenant is responsible for maintenance thereafter, or walk away.
 

MRT

Member
Livestock Farmer
Some people get buildings declared redundant at outset of tenancy so no repair requirements.........
That is an excellent point and something that was not done in an instance I know of that would put me off ever entering such an agreement
 

AJ123

Member
Mixed Farmer
Location
South east
Best thing to do is get a schedule of condition done at the outset then any improvements can be claimed for.
Only if the lease says in No better condition than evidenced by the schedule. Having a schedule of condition in the lease without correct reference to it means nothing.

Remember. ‘keep in repair’ means ‘put in repair‘.

Take advice.
 

Sacha

New Member
Thank you everyone. As far as I know there is only one building with asbestos roof and that is being taken down entirely by the landlord before the start of the tenancy. Very good point about the fences - they are in good condition but I hadn't thought to make sure we take pictures of everything.
Can anyone confirm that I am correct in my thinking (and was indicated by the agent) that I should be offering a lower rent that a normal FBT in view of this being a repair and insure tenancy? Really need to get my head round how much lower that could be as a proportion
 

Flat 10

Member
Arable Farmer
Location
Fen Edge
Thank you everyone. As far as I know there is only one building with asbestos roof and that is being taken down entirely by the landlord before the start of the tenancy. Very good point about the fences - they are in good condition but I hadn't thought to make sure we take pictures of everything.
Can anyone confirm that I am correct in my thinking (and was indicated by the agent) that I should be offering a lower rent that a normal FBT in view of this being a repair and insure tenancy? Really need to get my head round how much lower that could be as a proportion
Depends how much work there is to do....
 

hally

Member
Livestock Farmer
Location
cumbria
Depends how much you want it, drop to far below commercial fbt and you wont get it......if it hasn’t been sewn up now.
 
Last edited:

Huno

Member
Arable Farmer
I am after some advice on taking on a small farm on a repair and maintenance tenancy. I want to benchmark my rent offer as obviously I need to take into account any possible repairs to the buildings over the term. (house looks in pretty reasonable condition so I am hoping not so much will need to be done there). I am trying to balance offering a competitive rent offer against the risks of such a tenancy and the normal tenancy per acre prices I can find are not on a repair and maintenance tenancy.
If anyone could give me some guidance on ball park figures for livestock holding tenancy I would be very grateful.
My suggestion is about £50 per acre for entire holding and let them keep BPS. If you are planning to make a profit from livestock i hope you are a slaughterman,butcher, and own a shop or resturant where you can sell the lot or the numbers wont add up between now and 2028 unless you are happy to recieve below minimum wage! Good luck
 

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