Farm tenants must check rent review details carefully
Tenant Farmers Association Adviser, Katy Blagg has urged all farm tenants in rent review negotiations to check carefully through any information coming from their landlords’ agents and to seek advice before agreeing to any change in rent.
Speaking before this year’s Great Yorkshire Show in Harrogate, Katy said "Many farm tenants are facing rent review negotiations this year and right now landlord’s agents are providing information to tenants to justify the rent increases which they are seeking. Dealing with a rent review negotiation can be fairly daunting, particularly if the landlord appears to be seeking a significant increase in the level of rent being paid. However, it is important not to be overwhelmed and to ensure that any information provided by the landlord’s agent is checked and properly evaluated. The TFA is on hand to provide advice, information and support through the process".
"It is not surprising to find landlords’ agents using optimistically high output prices, unrealistically low input costs and inappropriate rental values for residential elements to back up their case for rent increases. With good advice and information all of these tactics can be countered. Furthermore, it has also been disappointing to find factual inaccuracies in some proposals tabled by landlords. This is why it is vitally important to have any proposals checked through thoroughly with the help of specialist advice," said Katy.
"The TFA is on hand to provide specialist advice and information on the rent review process. Even where you have an agent working on your behalf or you are comfortable with what you are doing, having a second opinion can always help. TFA members can also benchmark current or proposed rent levels through the TFA’s online rent databank available for all TFA members to use. This is a vital source of information which greatly assists tenants to ensure that their rents are not out of step with what others are paying," said Katy.
"For anyone not currently going through rent review negotiations but who might be expecting to receive a rent review notice from their landlord this year, consideration should be given to taking out the TFA’s Farm Business Protector Insurance which could assist with the costs of going to a rent review arbitration but this must be in place before the rent review notice is served," said Katy.
