There are many reasons to why you would lease out land for agricultural purposes. But, before you decide on listing your rural property there are a few things that you need to know. Farmers are true farming custodians of their land, their land stewardship knowledge is often passed from generation to generation within family farms. To know what is best for their land, how to work it properly, stocking rates, knowing which paddocks may not produce as well due to subsoil constraints, its repair and maintenance needs, and trigger points of water supply in dry and wet years. Knowing this information and being able to communicate it to others are two entirely separate things.
Know the Condition of your Rural Property
This includes what type of soil, the type of crop or grazing that its suitable for, the potential for flood or drought resilience through water schemes. Knowing the condition of the land will help lease the land, and will also help set guidelines for the condition of the land when the lease is finished and the land returned.
There are many resources that can help in assessing and reporting on the condition of your land, and we connect you to trusted advisors with this expertise. An online Rural Property & Agri Asset Marketplace will be able to have this completed for you. Often this may involve providing details about your property, enterprise (farming system), rainfall, soil type. Experts will be able to assist in land values, lease values and demand/supply within the market. However it is a fast transparent process and will not take long to complete so you have all the right information to make the decision of Leasing your Land. Better still the marketplace allows for potential lessee (tenant) to see your advertisement and pursue a property inspection.
Guidelines for potential tenants of your Rural Property
Setting some guidelines for what an applicant can and can’t do with the land can assist you in finding you a suitable tenant. It can also help trim down the list of applicants, as most land is suitable for several purposes. If an applicant has plans for a cropping when it is a grazing property only. You as the landlord (lessor) may view that it is not viable or doesn’t suit with your values and goals for the land than it makes it easier to put them to the bottom of the pile.
Maintaining the value of the land should be the number one priority, as there would be nothing worse than leasing your land and then it is returned and basically stripped of all potential for further crops or grazing by having all the nutrients stripped from the soil. Having a solid management plan can help avoid this situation and covers you as it sets out certain requirements that a tenant must adhere to.
Prepare a Formal Lease
Having a formal lease prepared before you list the property can help everything move smoother and faster. A potential tenant may want to see the conditions and requirements before making an application. If you are under prepared an excellent candidate may opt out.
In offering your property through a dedicated leasing agent, they will help you prepare leasing documents and take you through all the necessary requirements so you are fully prepared when a potential tenant is ready to make an offer.
Be Selective with Potential Tenants
As a landlord you need to choose the right candidate that is suitable for the land being leased. You should ask for references and contact them. Have a list of questions prepared and have a score against each point. You may not find a person that ticks every box, but at least you will have a good idea of the talent that is willing to take up your lease.
Selecting the right candidate is vital. They are going to be taking care of a valuable asset, and with land values on agricultural properties being largely valued on their potential to earn an income, having a person that will do a quality job is your ultimate goal.
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