New guidelines for negotiation of rent reviews

Tenancy: Need for avoiding surprises is stressed

There is new guidance to help tenant farmers and landlords negotiate and conduct rent reviews.

Scotland’s Tenant Farming Commissioner Bob McIntosh yesterday issued updated guidance.

It builds on the 2015 guidance, which is aimed at 1991 Act tenancies, which was published jointly with NFU Scotland, the Scottish Tenant Farmers’ Association and Scottish Land and Estates.

Mr McIntosh said the updated guidance provided clarity on some aspects of the processes used to review rent, in particular those relating to the provision of evidence and use of the inflationlinked sense check.

It emphasises the importance of avoiding surprises and encourages a preliminary conversation on the holding in advance of the rent proposal.

It also sets out clear guidance on the use of comparable rents in recent case law and emphasises the need for well-researched data to be presented to inform any new rent proposal.

“There is clear agreement that long periods between rent reviews can have a detrimental impact on farm business,” he added.

“Parties are encouraged to meet when a rent review is due, even where there is no variation sought in rent payable.”

Rent determination was “not an exact science” and arriving at the rent sum required agreement based on discussion and analysis of evidence provided by both sides.

“The updated guidance offers information on making and responding to rent proposals, including the need to provide evidence in the case of a rent proposal and any counter proposal made,” added Mr McIntosh.

The new guidance is available online at www. landcommission.gov.scot/ tenant-farming/reviewsand-reports

TRANQUIL PICTURE: Avoiding long periods between reviews can help ensure a bright outlook for both parties