TENANT FARMING FORUM PROVIDES RENT REVIEW GUIDANCE

Issued on behalf of the Tenant Farming Forum

Scotland’s Tenant Farming Forum has issued interim guidance to landlords and tenants on how best to conduct hassle-free rent reviews following concerns raised with the Forum over the past six months.

The guidance note, which will be circulated by Forum members and posted on the TFF website, lays out the procedures and practices that should be followed to achieve a fair and equitable rent review on behalf of both parties. A more detailed guide will be issued later in the year.

Although the agricultural holdings legislation requires a formal style of notice, the TFF is keen that the actual rent review should be seen as a normal part of the landlord/tenant relationship. If it is proposed that there should be changes to rental arrangements then the TFF believes it is in everyone’s interests that the negotiations should begin as early as possible to avoid time pressures aggravating discussions. Good practice requires that the process of negotiation should start at least three months before the review date.

The TFF chairman, Jeff Maxwell said:

“As a body representing the interests of landlords and tenants, we believe that rent reviews should be seen as part of the normal working relationship between both parties. The recommendations in the guidance should make the review routine, straightforward and avoid any damaging friction. By nurturing the working relationship between landlord and tenant interests, we are confident that our guidance can help strengthen the landlord /tenant sector and its continued contribution to the Scottish agricultural industry.

“Rent reviews are a necessary part of that industry. On a national level, recent reviews have tended to be driven by commodity price cycles rather than the three-year review period provided for in the agricultural holdings legislation. As a result, in those cases where reviews have not been sought for many years, changes in proposed rents may on the face of things appear to be disproportionate.

“The TFF suggests that if rent reviews were to be carried out on a more regular basis – and certainly closer to the three-year minimum period as allowed in the legislation - then any adjustments that are warranted would be better able to be accommodated. This should lead to a more positive and constructive approach and create a less fearful response to the review process.”