WHAT IS THE EFFECT OF LANDLORD AND TENANT RELATIONSHIP ON PROPERTY VALUES

WHAT IS THE EFFECT OF LANDLORD AND TENANT RELATIONSHIP ON PROPERTY VALUES

Alemu, T. (1999) while the percentage of leased farmland has remained relatively constant in the US over the past century, the characteristic of lessees, lessors, and the nature of the contractual arrangements between them have hanged about 65 percent of landlords are more than 60 years of age. Most are not actively engaged in farming. Over half live within 25 miles of the rented acreage. Women are a significant factor; while 31 percent of landlords are men 40 percent are women, and another 29 percent are joint male and female (Roges). Moreover, the significance of female landlords is expected to increase as the overall farm population ages.

The proportion of rented land is generally higher in states, Ohio for example, where land is more highly valued. In fact, in 1997 approximately 47 percent of land in farms in Ohio was leased (1997 census). Though share leasing has historically dominated in the Midwest, results from the most recent Ohio farm land lease and precision Agriculture survey indicate that over 75 percent of leased land is now cash leased, and that crop-share terms vary significantly. Additionally, a 1998 survey of professional farm manager in Illinois reported that 93.2 percent had experienced a modest to significant increase in the level of cash leasing in their market area (Barry, Solomayor, and Moss).

A recent study indicated that lease prefer hence are influenced less by risk aversion than by the characteristics of the leasing relationship namely the threat of opportunism from the landlord and the potential returns to the producer's management ability (Moss). Moreover, Bierlen and Parsch found that social capital is important in determining the terms of trade between lessee and lessor. For example, a tenant is less likely to pay higher cash rents when the landlord is a relative. In other words, the nature and extent of the relationship between landlord and tenant can have a significant influence on lease type and terms, which in turn can impact the profitability and competitiveness of Ohio farmers.

GUIDELINES FOR TENANTS

Following some straight forward guidelines can help tenants ensure that their farm business remain profitable. The guidelines can also reduce the cost of day-to-day relationship problems. Dunaway and Dunte man remind us that the old adage of "keeping the landlord happy" is no different from an effective public-relations strategy in any business. For example, they reduce a strategy for farmers, with the end goals of retaining control over rented land or other real estate, to six key points:

·         Communicating with landlords

·         Educating lessors about agriculture

·         Explaining farm costs and their changes overtime

·         Providing regular crop reports during growing season.

·         Maintaining the appearance of the property,

·         Treating landlords like family.

LANDLORD TENANT RELATIONSHIP DEFINED:

Landlord is someone who provides a dwelling unit for another pursuant to a rental agreement. The rental agreement may be oral or written. A tenant is someone who occupies a dwelling unit pursuant to a rental agreement NRS chapter 118A governs the landlord tenant relationship. Berhanu, A. and Feyera, A:. (2005) Good tenant relations are important if you want to manage rental properties without encountering undue stress. Here are some tips to follow when chosen a good tenant screen all prospective tenants through a reliable screening ser ice or take the time to do it yourself. A credit report, criminal check, and references form a previous landlord and current employer are mandatory. You will have good landlord-tenant relations if you are not a pushover. You will have good landlord tenant relations if you take care of your property and treat your tenant in the same way you would want to be treated. Be friendly but firm, and your tenants (who you have chosen carefully), will be kind and fair to you.

A LANDLORD - TENANT RELATIONSHIP CHECKLIST

Holden, S. and Yohannes, H. (2002) the type of information communicated between landlord and tenant can be as important as the amount of communication. Existing relationships may be strengthened, or new ones solidified if the leasing parties ask appropriate questions. The following checklist of questions can guide communication. Landlords and tenants can use the same checklist. Goals what are your investment (for landlords) or business (for farmers).

WRITTEN BY: CHAMAN LAW FIRM TEAM

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