More dairy units have come on this year to rent with the improved milk price. As a landlord it is important that when prospective tenants come to put their tender in they know exactly where they stand in respect to all aspects of the property. Whether the tenancy is for 10 or 20 years, clarity is everything, not only to obtain the best and most sensible level of tender, but also to attract the best quality tenant. For the tender exercise to be a success, to be vague at the initial stages of advertising and preparation of the information supplied in the Tender Pack will not help the landlord, and only increases the chances of creating resentment if either party are subsequently forced to accept something at short notice that has not been thought of in advance. If generally the tenancy agreement is too vague, this also runs the chance of there being a misunderstanding further on down the line.
Prospective tenants need to understand that, if they seriously want to be considered, it will involve a considerable investment of time and some money to put a tender in. A land agent’s input early on can considerably reduce wasted time and keep costs down, assessing whether it is a farm you are going to want to view. A considerable amount of the work preparing for a tender can be done before the viewing, and if you are still committed after checking all the information provided in a Tender Pack carefully, your agent walking the farm with you prior to putting in your tender can make the difference between making the farm a business success or failure. I have seen cases where farmers have taken on tenancies with seemingly little forward thought, delaying any professional input, in some cases, until after they have moved in and need to sign the lease. Nothing normally makes up for having your agent walk the farm with you before putting in the tender. By this time there should be a tenancy agreement your agent can help you with, and as always, the “devil is in the detail”.
We are currently letting a two hundred acre commercial dairy unit near Witheridge in Devon on a 20 year FBT available from this autumn, with 203 cubicles, loose housing and an 8 x 16 herringbone parlour. Viewing days are in mid-July with a tender date of the 14th August. Such tight timetables are now not uncommon and how readily you approach and deal with this will reflect in your tender and the resulting chances of success.
These types of commercial properties always prove to be popular, whether to run as youngstock satellite farms or to step in and take over the existing herd with the monthly milk cheque coming in straight away. Cash flow predictions and budgeting, as always, are vital, plus a clear idea of what you are looking to achieve within a sensible time frame.