Landlord and Tenant Relationship, Its Effects 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 instates, 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 a version 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 determing 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.
2.1 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:
i Communicating with landlords
ii Educating lessors about agriculture
iii Explaining farm costs and their changes over time
iv Providing regular crop reports during growing season.
v Maintaining the appearance of the property,
vi Treating landlords like family.
2.2 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.
2.3 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)
Objectives?
i Risk: How would you describe your level of risk aversion? What is your perspective on sharing risk? How much production and price risk do you wish to incur?
ii Communication preferences: Ask the other party about their expectations regarding the type and extent of communication that they desire overtime, and be prepared to adapt accordingly.
iii Lease preferences: Do you have any pre-existing preferences for or objections toward certain lease types? Determine the foundation of any objections or biases. Biases can either be overcome or will dietate the lease type through which the relationship is governed.
iv Attitude toward change: Are the parties to the lease willing to consider new options as opportunities or challenges present themselves?
v Constraints: Does either party have any taxation, business, financial, or other constraints that may influence the nature of the lease or the relationship?
vi Win / win: Are both the landlord and tenant willing to seek win / win solutions to problems?
COMMUNICATION – A CRITICAL SKILL
A successful relationship strategy depends on effective communication. Removing barriers is an effective way of improving communication, and requires an understanding of the communication model. The model consists of sender, message, receiver, channels, feedback, and effect. The sender sends a message through appropriate channels, either verbal or non berbal, to a receiver. A response is provided to the sender of the message via feedback from the receiver. Feedback need not be sent through the same channel as the message (e.g, it may be a nonberbal cue such as body language. Through interpretation of those feedback, the send can determine if the original message was receives in its intended form. Effect on the receiver completes the communication process. Melkamu Belachew (2008) problems in any one the components of the communication model can result in carrier communication, such as:
i Unclear messages: The receiver remains unclear about the intent of the sender. The sender can interpret feedback to determine if the message is clear or unclear.
ii Stereotyping: Stereotyping involves either the sender or receiver developing a subjective impression that the other conforms to a certain mental model. This can be a barrier to communication when it substitutes for analysis of and responsiveness.
iii Incorrect channels: Use of the correct channel assist the receiver to understand the nature and importance of the message choice of channels dictated by the urgency, complexity, and formality of the message, as well as the knowledge. Skills, and abilities of the receiver. Tenants should keep in mind that landlords sometimes want more than a written report.
iv Language: The sender’s words contains with the receivers perceptions of them. The relationship between perception and reality can be determined through interpreting feedback. Progressive, younger tenants should be cognizant of using appropriate language. Technical or complex terminology may leave certain landlords confused and suspicious.
v Lack of feedback: Feedback mirrors the senders original message, and may indicate a perception. It may occur in the form of questions, or non-verbal cues such as a frown or puzzled appearance. Prompt feedback, in which both parties play active roles, should be encouraged. Asking the receiver to repeat the message in his own words is often effective.
vi Poor listening skills: Poor listening skills are pervasive. Good listening skills are fostered by:
- Avoiding interrupting the speaker, and
- Being prepared to listen,
- Being an active listener, which includes providing feedback. Listening is a particular challenge for tenants, who may have less time for “friendly chatter” than landlords
A successful strategy for managing relationships with your landlord should include the following:
i Have a written lease: Lease agreements for farmland or real property assets should be in writing many landlord-tenant relationships in Ohio have traditionally been governed by oral leases. However, keep in mind that oral, informal, and incomplete arrangements can foster misunderstanding and provide little guidance or protection to parties when disagreements occur. (please refer to the legal and management aspects of Ohio farmland leases fact sheet in this series).
ii provide a resume: Provide landlords with a detailed “resume” of your farming operation include specifils regarding business objectives and philosophies, history of your business, education, tillage practices, equipment, land tenure, financial strength, and family.
iii Provide information about objective: Inform your landlords of the objectives for your farming operation. Remain responsive to changing landlord needs and communicate this responsiveness. Particularly when goals change, dialogue among the parties may foster a continued relationship, though the lease type or terms may evolve. Anecdotal evidence suggests that poor communication in this regard is a common reason for tenant termination.
iv Agree on a cropping plan: Agree upon a cropping plan early in each crop year. Include specifies regarding input use and field operations.
v Provide regular updates: Regularly update landlords regarding crop conditions and commodity markets during the growing season. Anticipate the landlord’s interest in how the weather is influencing crops, when planting or harvesting will begin, and reasons for any delays in planting or harvesting.
vi provide lost information: landlords should be regularly updated regarding the costs of farming alerting the landlord to anticipated changes in costs can prevent irritation when the bill arrives. Residential and commercial lease. Landlord tenant law generally recognizes differences between residential and commercial leases on the assumption that residential lease present much more kof a risk kof unequal “bargaining power” than commercial leases.
landlord duties:
The modern concept of landlord tenant law includes duties beyond simple conveyancing of the lease.
i Duty to deliver Possession: In England and according to he uniform residential landlord and tenant Act in America, the landlord has a duty to deliver possession to the tenant at the beginning of a lease. the justification for placing this burden on the landlord is the idea that the landlord has more resources than the new tenants to pursue legal remedies against wrongful holdovers (formal tenants that will not give up possession of the lease). (6)
ii Covenant of quiet enjoyment:
By virtue of the contractual aspects of a lease, modem leases in America include an implied covenant of quilt enjoyment. This means that the landlord will not interfere with the tenant’s possessory rights to the lease (7).
Though a landlord may forcibly enter without required notice during an emergency, generally a mere necessity for quick action does not constitute an emergency within the doctrine of imminent peril.
References:
http://emmallen.blogspot.com.ng/2013/04/managing-landlord-tenant-relationships.html
Click to access Managing_tenant_landlord_relationships_1.pdf
