Best practice requires that the rent review process of negotiation between tenant farmer and landlord should start long before the actual ‘term’ date.
The relationship between landlords or their representatives and their tenant farmers should be nurtured by regular contact and the rent review process should be seen as a normal part of the business relationship.
Either of the parties involved in the agricultural holdings tenancy arrangement can initiate a rent review, if they feel that it is appropriate.
Although the legislation requires a formal style of notice, the actual rent review process should be seen as part of the normal working relationship between the parties involved.
Both parties should engage in the rent review process from a position of mutual respect and with a desire to reach an acceptable conclusion to both sides. Indeed, the process could result in an agreement that the rent should remain the same or even that it should be reduced.
There are a number of publications which can help guide you through the process:
- The Tenant Farming Forum (TFF) has published a brief guide to good practice on Farm Rent Reviews – an Introduction and Guide to Good Practice as an accompanying document that should be read in conjunction with formal rent review notices
- The Scottish Agricultural Arbiters & Valuers Association (SAAVA) has produced and published a Practitioners Guide to Scottish Agricultural Rent Reviews to assist individuals when undertaking rent reviews
- The Tenant Farming Commissioner has issued an updated guide on Conducting Rent Reviews as a follow-up to the joint industry guidance, published in August 2015
Telephone: 0300 244 9920
Agricultural Holdings Team
Agriculture and Rural Directorate