Landlord’s agents guilty of ’sharp practice’

The Tenant Farmers Association has detected a worrying display of sharp practice amongst some landlord’s agents in this year’s spring rent reviews.

TFA Chief Executive George Dunn said "Rent reviews are part and parcel of normal landlord tenant interaction and on farms they usually occur every three years clustered around the spring and autumn. It is fair to say that in most cases they settle amicably. They can also provide great opportunities for landlords and tenants to discuss matters of mutual concern and to review other aspects of the running of the farm such as investments, improvements, repairs and possible succession".

"Rent Reviews can be stressful times for both parties particularly so for tenants when the landlord’s agent chooses to take a very aggressive stance which sadly we have seen in this year’s spring reviews. This year too we have seen the use of tactics that can only be described as sharp practice which does nothing to enhance landlord tenant relations," said Mr Dunn.

The concerning practices of some landlords agents detected by the TFA include the following:

- Proposing a relatively high rent settlement and offering to discount it if the tenant agrees without seeking their own professional advice.

- Implying that rents on Farm Business Tenancies are direct comparables with rents under traditional, Agricultural Holdings Act tenancies.

- Inappropriate and uninformed use of the outcome of a recent Scottish rent review court case with little, if any, relevance south of the border.

- Over inflating the value of farm houses within agricultural tenancies and the use of rents being paid on residential tenancies as comparables.

- Inappropriate, selective use of rent information issued by the TFA.

- Setting a rent based on a split of the profit from the holding and then adding in spurious amounts for such things as farm houses and agri-environment payments

"Whilst there are standard rules which apply, every farm rent review is conducted within a unique set of circumstances. It should never be the case that individuals on either side of a rent review are prevented from seeking independent advice. We also expect professionals to act professionally as both parties to the review have to live with the consequences of the rent review process and whatever is eventually agreed into the long-term," said Mr Dunn.

"For those cases where landlords’ agents are persisting in seeking unreasonable levels of rent and arbitration might be necessary as a last resort, the TFA’s arbitration insurance could assist to cover the costs involved," said Mr Dunn.