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Are you considering renting land?
The aim of the Bright Property website is for the landlord and tenant to deal directly with each other, so we have produced this Renting Land guide to help you.
STEP 1 - WHAT CAN YOU AFFORD?
Before you start looking for property it is a good idea to work out how much you can afford
to spend and establish what the costs of renting are.
STEP 2 -CHOOSING THE LAND?
- Agricultural
- Grazing
- Recreational
- Pasture
- Pony Paddock
- Woodland
It is worth drawing up a list of the things that you want from the land. Though bear in mind
finding the perfect plot is not always possible and compromises may need to be made.
Things that you may need to consider:-
- Location Location Location! - the key phase is property searching.
- Size and shape - it is what you envisaged and suitable for your use.
- What planning consent/use does it have? Is it still valid?
- Does it have an agricultural holding number?
- Infrastructure – roads, rail and public transport links.
- Development – is there any major development taking place in the areas, this maybe a
positive factor in the long term but an inconvenience in the short term.
- Is the price of the land comparative to local land prices?
- Environmental Considerations – e.g. development on a flood plane. The Environmental
Agency website can provide information about this http://www.environment-agency.gov.uk.
- Pollution/Contamination – previous use, vicinity to development and the surrounding area.
- Waste and Water systems.
- Site gradient – is the site on a slope, is it suitable for building on or accessing.
- Soil Type – what is it condition is it suitable for your use i.e. foundations, growing crops.
- What services are available – where are the connections.
Where to look:-
- Register with Bright Property under the Wanted Ad.
- Search Bright Property properties available.
Viewings
- Where possible try and arrange viewings as soon as the property comes on the market.
- Take the property detail along with you and a contact number if you are running late.
- Make notes – you may not remember all aspects of the property if you are viewing several. Taking photographs can be a good record of the property, but ask the owners permission beforehand.
- View the land a number of times if you need to. At different times of the day, weekdays,
weekends etc so that you get a feel for it.
- Look round the area.
- If you are going on your own make sure somebody knows where you are.
STEP 3 – RENTING A PROPERTY – THE TERMS
Types of Agreement
It is advisable that the letting is documented, setting out the rent, length of tenancy and
both parties’ responsibilities. Depending on the use of the land and the facilities included
within the letting will determine the type of tenancy agreement. For example agricultural land
could be let on Farm Business Tenancy and land for grazing horses may be let on a Fixed Term
Tenancy.
Fixed Term Tenancy are for a specified period (e.g. two years) and can include a break clause
allowing either party to end the agreement by serving notice.
If the land is let with stabling a more comprehensive agreement may be required to cover this.
Similarly if an occupier uses land for business rather than recreation, another form of agreement
is relevant, because separate legislation applies.
An agreement usually starts with a definition of the particulars. The following provides an
indication of what these may include:-
- Names and addresses of the Landlord and Tenant.
- The date the tenancy agreement commences.
- The length of the tenancy agreement.
- Break Clause
A clause allowing either party to serve notice to terminate the
Agreement should they wish.
- Location and approximate size of the land with reference to an accompanying plan
marking the site boundary. An Ordnance Survey plan with the plot of land outlined will suffice.
- Rent
How and when it will be paid, i.e. standing order, direct debit, or cheque.
Weekly, Monthly and Quarterly. What would happen if it is not paid and the amount of interest
that would be charged.
- Outgoings or example water rates, electricity which the Tenant would be responsible for.
- Rent Review
The tenancy will state how the new rent will be reviewed – i.e. based on
Comparable evidence or another mechanism such as linked to the Retail Price Index. When it
is going to be reviewed, if time is of the essence. What happens if an agreement cannot
be reached which dispute resolution method will be used. Arbitrator or expert.
- Use – agricultural, pony paddock, paint balling.
- Assignment/Subletting – whether either or both will be permitted.
- Rent Deposit
Whether a deposit is required. It will need to be agreed when it will be
repaid and the circumstances it will not be repaid.
Tenant’s Right and Responsibilities
Depending on the use the Tenant will usually be responsible for: -
- Paying the rent on time.
- Paying all bills responsible for i.e. electricity, gas, Business Rates, etc.
- To repair any damages caused.
- Keep the land secure.
- Keeping land clear of injurious weeds, including ragwort, broad-leaved dock, curled dock,
creeping thistle and spear thistle.
- Preventing damage to the trees and fences.
- Maintaining condition of and repairing when appropriate, gates, fences, hedges and
trees growing on the land.
- If the land has been let for grazing ensuring the land is used only for that
purpose and by an appropriate number of livestock.
- A welfare clause could be included in an agreement to ensure livestock is kept in good
condition.
- Obtaining Landlord consent prior to storing vehicles/equipment on the land or putting
up any fixtures.
- Having appropriate liability insurance for any injury or damage to third parties caused
by the livestock whether on or off the land.
- Ensuring any public or private right of way is not obstructed.
Landlord Rights and Responsibilities
- To seek possession if the Tenant is in breach of the agreement.
- To receive payment of rent.
- To enter the property in accordance with the terms of the tenancy
- Renewal of fences and gateways if they have become beyond repair unless the Tenant has
damaged them.
BOTH PARTIES MUST SIGN THE AGREEMENT IN THE PRESENCE OF A WITNESS.
STEP 4 – NEGOTIATION
Tips to help with negotiation:-
- How many people have viewed the property?
- How long has it been on the market?
- How long does the Landlord want to rent it?
It is advisable to set out the basic terms that the land is being offered, in the details as a
guideline to the potential Tenants. There may be an element of negotiation (such as the length of
the tenancy) it will depend on the circumstances and the demand for the premises.
Tenants Checks
In most cases a Landlord will take up a prospective Tenant’s reference. Therefore be prepared
to provide the following:-
- Employers’ Details - our title, salary, payroll number, a contact at work, and name of
previous employer.
- Bank Details - bank name, address, your account number, sort code, account name
- Personal References – People who have known you for a number of years (excluding family members)
- Previous Landlords – Details of where you have lived for the last 3 years.
- Checks with Credit reference agency may also be carried out.
- It is not unknown for administration charges to be made in respect of obtaining references.
Tenancy Deposit
it is usual for a deposit of between one and two months rent to be held during the tenancy. The
purpose of the deposit is if the Tenant to comply with the obligations of the Tenancy Agreement
such as keeping the land in good order. The Landlord can use the money to remedy the breach. The
Tenancy Agreement should set out who is to hold the deposit (e.g. Agent or Landlord), whether
interest is to be paid or not, what the deposit can be allocated for and the end of tenancy
procedures and timescales for its refund.
Inventory
If you are renting land with fixtures or fitting it is important to list all the items included.
You may even wish to record the condition of the land and fixture and fittings with photographs or
a schedule of condition. By having a full inventory this will hopefully eliminate any misunderstandings
at the end of the tenancy. Both parties should agree and sign the inventory.
STEP 5 – END OF THE TENANCY
At the end of the tenancy it is usual for the Tenant to be responsible for reinstating the
land (depending on the tenancy terms) to its ‘original condition’ this may mean removing all
the alterations that have been carried out since the commencement of the Tenancy.
If you had
a Schedule of Condition survey (written or photographic or both) undertaken at the commencement
of the tenancy his may eliminate any unnecessary negotiation.
Your tenancy agreement should set
out what you are required to do and it is worthwhile ensure you have a sufficient funds to
undertake any work that maybe required.
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