Smallholders Insurance from Greenlands

Author Topic: Renting out land to tenants - what to know?  (Read 3292 times)

thescot82

  • Joined Apr 2022
Renting out land to tenants - what to know?
« on: June 16, 2022, 01:27:39 pm »
Hi.

I have 6.5 acres of land that I'm keen to rent out to tenants in the short term. What are the things I should know?

The land consists of the following:
1.8ac - paddock with stables
3.1ac - grazing land
1ac - grazing land (with large pond)

Due our current financial situation, I'm thinking it's best that I set up a small limited company that all income is made payable to. Longer term, I'd like to rent out the paddocks to a horse owner, establish a woodland on some of the grazing land (aided by the woodland trust), and on the field with the pond to grow an orchard.

Short term however, I need to get the fields in order. Mow the grass, trim back hedges etc. Ideally I'd like to rent the land out to a farmer but I don't know the going rates and/or whether they would suggest it's quid pro quo as they are doing me a favour in keeping the grass down etc.

I know I don't need a CPH as that is the responsibility of the animal owner.  As a landowner, aside from ensuring there is access to electricity (the stables has solar power) and water, it seems like most of the onus is on the tenant to maintain upkeep.

As a landowner is there anything else I should be thinking about? Are there schemes/grants I should be signing up?

Penninehillbilly

  • Joined Sep 2011
  • West Yorks
Re: Renting out land to tenants - what to know?
« Reply #1 on: June 19, 2022, 01:24:29 am »
Def dont let a farmer say hes doing you a favour and expect it for nothing, I've had 1500 offered for 10acres, its had a tenant who had cattle summer grazing on it for about 50 years, old chap given up. But some other land, tenant made a point of telling he had other grazing that was free, just to keep it tidy.  I told him he was lucky, the landowner must be rich. (I wonder if he left dead sheep on that land as well?)
Get money in advance, make sure they have insurance, and they are responsible for damage to fencing gates etc.

harmony

  • Joined Feb 2012
Re: Renting out land to tenants - what to know?
« Reply #2 on: June 19, 2022, 08:57:49 am »
You can find grazing contracts online.

Backinwellies

  • Global Moderator
  • Joined Sep 2012
  • Llandeilo Carmarthenshire
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Re: Renting out land to tenants - what to know?
« Reply #3 on: June 21, 2022, 09:09:02 am »
Firstly I would never rent to horse owners ..... they usually dont have the equipment or knowledge to keep a paddock healthy .... and horses trash grazing in wet periods.  They will offer most money ....  but you will spend most of it on getting farmers to put land back in good heart.

For short term let sheep is easiest .....  not good for the grass health either long term!  There are standardish grazing rates for tack grazing .... and contracts can be found on line. ....

Livestock owner is only going to keep things in order if contracted to do so ..... some peoples idea of mending fence is stick anything in gap!   

I'm sure others have a few horror stories they can share  :thinking:

Linda

Don't wrestle with pigs, they will love it and you will just get all muddy.

Let go of who you are and become who you are meant to be.

http://nantygroes.blogspot.co.uk/
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landroverroy

  • Joined Oct 2010
Re: Renting out land to tenants - what to know?
« Reply #4 on: June 21, 2022, 05:27:36 pm »
I would entirely agree with what you've said about horse owners, Backinwellies, but why do you consider that sheep are not good for grass health long term?


In my experience of over 30 years of sheep keeping - they are by far the best animals to keep pastures in a good state. Their close grazing gives a thick sward and prevents the establishment of weeds, and their light weight prevents really bad poaching in winter. They also do not lean over and destroy fencing.
Rules are made:
  for the guidance of wise men
  and the obedience of fools.

juliem

  • Joined Aug 2014
Re: Renting out land to tenants - what to know?
« Reply #5 on: June 26, 2022, 02:47:06 pm »
Entirely agree..I would never rent to horse owners.They ruin the pasture/kill trees and there's also loss of privacy as they visit with kids all the time.Shared access/parking always problematic Where does the muck go ?
If you want a quiet life go for sheep...but you need to invest in stock fencing/water troughs if you want to charge rent.
Your'll never make any money unless your hooked up to some government countryside scheme.If you can get residential planning on the barn...then you might make some money.
I find the rent from 12 acres of sheep grazing just about covers the maintenance of the fields.It costs me £400 each year just to cut the hedges.But I have my privacy and a quiet life which is worth more to me.

juliem

  • Joined Aug 2014
Re: Renting out land to tenants - what to know?
« Reply #6 on: June 26, 2022, 02:49:10 pm »
Woodland Trust usually only give grants if public have access to land.

Backinwellies

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  • Joined Sep 2012
  • Llandeilo Carmarthenshire
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Re: Renting out land to tenants - what to know?
« Reply #7 on: June 28, 2022, 04:53:48 pm »
landroveroy .... my comment on sheep refers to trying to keep a bit of diversity .... in the sward ..... yes if all you want is commercial grass and add fertiliser when necessary sheep keeping works. If you want to encourage a more diverse sward with wild flowers / polinators the sheep grazing must be restricted to certain times of they year ... they eat to the ground which kills all but grass plants.   A tack grazer will not care about your sward as long as it feeds his sheep .... 
Linda

Don't wrestle with pigs, they will love it and you will just get all muddy.

Let go of who you are and become who you are meant to be.

http://nantygroes.blogspot.co.uk/
www.nantygroes.co.uk
Nantygroes  facebook page

twizzel

  • Joined Apr 2012
Re: Renting out land to tenants - what to know?
« Reply #8 on: July 03, 2022, 05:27:19 pm »
Woodland Trust usually only give grants if public have access to land.
No they donít, we got a grant through them to plant hedges, on private farmland. That was through Morehedges scheme.

juliem

  • Joined Aug 2014
Re: Renting out land to tenants - what to know?
« Reply #9 on: July 04, 2022, 09:44:39 pm »
Presumably you had to pay to fence the newly planted hedge from livestock?An expensive business if you have to fence both sides.

 

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