Management matters: planning ahead for retirement is crucial
PLANNING for the future is sometimes an issue that people in the agricultural industry put on the backburner.
However, as farmers get older, planning for later years crops up. The Farm Advisory Service has advice for putting plans in place if retirement is the route you are looking to go down.
Thinking about your future
Many farmers quite rightly concentrate on the ‘here and now’ of their businesses, but how oen is there thought given to life aer the farm?
There’s a lot of conversation at the moment about succession planning, and part of that is where you will live in retirement.
If the farm is tenanted, and you have no successor and find yourself in the relinquishment scenario, there can be the added pressure of finding somewhere to move to. In many cases, farmers have lived most of their lives in the same place, so there is an emotional impact.
In a similar scenario, if a farm is owned and you’re faced with either moving out for the next generation or in the case of a sale, planning ahead to have somewhere to go can reduce some of the pressure at a stressful time.
Finding a property
If there is no obvious solution to this retirement housing issue, such as a farm cottage, then consideration may want to be given to buying a property then letting it out until such time you are wanting to move.
In doing this, you can take the time to choose a location you prefer and a style of property best suited to you.
The earlier a property is purchased, the more chance you may have of paying o any mortgage prior to retirement, but advice on this should always be taken.
Becoming a landlord
To rent out a property for either residential or holiday let use has a degree of responsibility, but it is all quite achievable. When looking for a property, consider if you are wanting a renovation project, or something more ‘hassle free’ and opt for a ‘turn-key’ property.
You may also want to consider engaging the services of a letting agent.
All properties rented out need to meet the minimum Tolerable and Repairing Standards as set out by Scottish legislation. This covers the fundamentals of a property, such as ensuring it is wind and watertight, but also that it has the required certificates in place.
Once a property meets the legislation for rental, a landlord is required to be registered with their local authority. Then the property can be rented out.
Current residential tenancies are governed by Private Residential Tenancies which have a much shorter minimum term that historic Short Assured Tenancies. Holiday lets (short-term lets) require additional paperwork, as would a House of Multiple Occupancy (HMO).