RESPONDING to an increase in cases involving landlord tenant disputes over the use of comparables in rent reviews, the tenant farming commissioner, Bob McIntosh, has released new guidance published on the Scottish Land Commission website aimed at enhancing the understanding and procedures when using comparable holdings in rent reviews for agricultural tenancies.
The guidance provides clear methodologies and detailed steps for using information from comparable holdings when conducting rent reviews including how the approach should be applied for 1991 Act tenancies, Limited Duration Tenancies (LDTs), and Modern Limited Duration Tenancies (MLDTs).
Dr Bob McIntosh stated: "This new guidance is designed to sit alongside existing guidance on rent reviews with the aim of brining clarity and fairness to the use of comparables in the rent review process.
“By providing a detailed framework and encouraging transparency, we hope to support both landlords and tenants in reaching equitable agreements that reflect the true value and productivity of agricultural holdings."
Concerns relating to a lack of transparency and disclosure of the comparable holdings selected during rent negotiations have also been a subject of discussion at recent Tenant Farming Advisory Forum meetings, a forum that brings together representatives from a range of industry bodies including the Scottish Tenant Farming Association, Scottish Land and Estates, and National Farmers Union Scotland. The forum, chaired by the TFC, advises on priorities for Codes of Practice issued by the TFC, priorities for the commissioning of research and investigative studies and identifying barriers in the tenant farming sector.
Guidance and Codes of Practice are published on the Scottish Land Commission website and are intended to encourage and promote good practice in the conduct of landlord/tenant relationships and cover all the main points of contact, including late payment of rent, sporting rights and agreeing and recording tenant’s improvements.
Taking into account relevant legislation, the codes provide a framework of procedures and proscribed behaviours which provide a basis for constructive dialogue and a consistent and transparent approach to negotiations.
Tenant farming manager, Peter MacDougall, who alongside the TFC provides support and advice to tenants and landlords said: “We want to see a thriving tenant farming sector, and that starts with good communication and understanding between tenants and landlords.
“We would encourage everyone to make use of the codes of practice and the guidance when managing their lease and familiarise themselves with their responsibilities.
“If anything is unclear within the lease, or if they have concerns, they can contact us on the TFC helpline where we are happy to discuss anything agricultural tenancy related.”
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