2016-03-21 |
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Time for Farm Tenants to Serve Notice for Rent Reviews
The Tenant Farmers Association is urging all tenant farmers with Lady Day rent review dates to consider serving notices for rent review on their landlords.
TFA Chief Executive, George Dunn said;
“Traditionally, one of
the main days for starting farm tenancies was 25 March, known
as Lady Day. It is also therefore one of the main dates upon
which rent reviews take place. In order to start a rent review
either the landlord or the tenant must serve a notice at least
12 months before the date of the next tenancy anniversary date
which means now is the time that tenants must consider serving
notices for a review to take place at Lady Day 2017.”
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“Of course, many tenants will be under review from notices served, mainly by landlords, this time last year. We would urge those tenants to use the opportunity they have been given to argue for rent reductions. With the current downturn in agricultural fortunes looking to last for a considerable period of time, now is the time to be getting rents down,” said Mr Dunn.
“Many tenants are fearful of using a formal notice in case it is seen by their landlords as an aggressive act. In fact, the serving of a rent review notice is a neutral act as it merely provides for the opportunity for the rent to be reviewed. That review can cause the rent to go up or down,” said Mr Dunn.
“Another worry is the possibility that the landlord could use the notice to argue for an increase in rent. Whilst this is something which needs to be taken into consideration particularly where the rent for the holding is low in comparison to average rents, for the most part where rents have been settled within the last three or four years it is difficult to see how rents will be increased unless there is a significant improvement in farming fortunes which will be to all our benefit,” said Mr Dunn.
“Serving a rent review notice is straightforward. The TFA is on hand to provide advice and make available ready to complete notices to tenant farmers requiring assistance,” said Mr Dunn.
