How to Rent Farms: Farms and Renting

Renting anything can be risky for both the landlord and the tenant. There has to be a legally binding contract that covers every detail no matter how small they may seem. The rent has to be fair, the landlord needs to be able to make a profit and the tenant needs to be able to afford the rent and expenses of daily living. Would you agree to an amount that would leave you nothing for food, for instance? The landlord needs to be aware of the expenses that he will incur during this rental period; the tenant needs to be aware of his own expenses. Both will need to be aware of what the real estate market in the area is at the time. If the market fluctuates often, or in the case of farming, seasonally, then only rent for shorter terms, say six months rather than a year.

As a landlord, you will be the one to make repairs to the property, but which ones? If you trust the tenant and his abilities to do so, you could agree to allowing him to keep up with as needed repairs with some compensation in the form of reduced rent. On the other hand, if the property is a farm, will this tenant be too busy working the land to keep up with minor repairs to other portions of the property? If you are renting the house as well as the farm for instance, will he really have time to fix a hole in the plaster when he has crops to tend?

A renter has to be confident in how fast and efficient his landlord will be if repairs need to be made. Many a renter has gotten frustrated and tried to make a repair himself only to make things worse. If that happens, will it count as a violation of the rental contract thus making it possible for a quick eviction in the middle of a growing season? Make sure you know up front how repairs will be handled and which ones you would be allowed to tackle on your own. If you do make repairs on your own, will you be reimbursed for any materials that you have to purchase?

Renting a farm can be frustrating, but it can be rewarding as well. The crops that come in will be able to be sold and the profits will not all be going out on mortgage payments and taxes like they would if you were the owner. On the other hand, the money that you pay out on rent every month is just gone- with nothing to show for it. Renting can be a good idea if this is your first experience with farming- before you make the decision to buy your own farm, rent first to get the feel of farming and what it takes to make one profitable.