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Lease ? Problem?

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DMiller View Drop Down
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Joined: 14 Sep 2009
Location: Hermann, Mo
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Post Options Post Options   Thanks (0) Thanks(0)   Quote DMiller Quote  Post ReplyReply Direct Link To This Post Topic: Lease ? Problem?
    Posted: 26 Apr 2022 at 7:16pm
Lease our place to a couple of farms that raise livestock together, Pay reasonable rate, have been not a problem until recently.  Are spread ULTRA Thin renting so many places with many at distance where I am afraid the maintenance end of things seems to have dissolved.

Agreement was Rent entire property for livestock, furnish and apply fertilizers for pasture and hay fields, keep uneaten weeds at bay by random mowings presumably twice per season, and finally Fence, is theirs to keep stock in and once I had the fences up they would maintain them as need repairs, I would furnish materials.  Have a few Hundred T-post at the Barn, clips and tools handy, seven rolls of OK Brand Four Barb 12 1/2ga and numerous Spare or extra Wooden Post as for those that will eventually rot.  Renters Been on the place now almost five years.

So far as a fence gets bad enough for the stock to wander into neighbors pastures a string or two of Hotwire gets laid out and the Wire fence is left decayed, watched calfs jump their hotwire with dead battery or bad charger and push under the Barb Wire Fence.  Was explained by one of them that "MY" Corner Posts are rotting and leaning where "My" wire is now loose so they had no alternative but add the temporary hotwire, NOTHING mentioned as to their needing help or actually going to get the wire fence fixed or their needing materials just emphasis on those being "My" fences.  I do not really want to be insensitive but this is beginning to expand across the property where I expected them to keep those up and have that in writing.


Edited by DMiller - 26 Apr 2022 at 7:18pm
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Hubert (Ga)engine7 View Drop Down
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Joined: 12 Sep 2009
Location: Jackson Cnty,GA
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Hubert (Ga)engine7 Quote  Post ReplyReply Direct Link To This Post Posted: 26 Apr 2022 at 7:36pm
If you have other prospects for tenants they may need to be reminded that they are not holding up their end of the deal and you may not extend the lease. Other things to consider are your relationship with the present tenants and that they may be in a bind because input costs are rapidly rising but the income is not. 
Just an old country boy saved by the grace of God.
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DaveKamp View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote DaveKamp Quote  Post ReplyReply Direct Link To This Post Posted: 26 Apr 2022 at 9:01pm
I second Hubert's concern.

Always keep in mind that a lease is a contract, and contracts have two sides, each with obligations and responsibilities.  A failure of obligation or responsibility on EITHER side, is referred to as a 'breach'.

Contractual breaches occur often, and the first and foremost action, is that the breach needs to be brought to the attention of the contracted party.  It should ALWAYS be done with some form of traceable proof, but in polite ways, it is common for a first notice to be casual, and if no action is taken, a letter cc'd to law office, corporate partners, or even your insurance agent, of the circumstance which is also a reminder of the previous conversation, like this:

--------------------------------------------------------------------------------------

Hi Jerry-

In regards to our conversation of 4/17/22 regarding the lack of maintenance to the fence, we must NOT have any risk of livestock.   I've got a healthy supply of fencing materials stockpiled in the south bay of my large red pole building on 192nd Ave and County Rd 9.  Please make use of whatever you need to get the pasture borders fortified, so there's no violation of my neighbors' lands.

My Son-In-Law Doug is a quarter mile south, he's working the shop next door during most days, if you need help loading, can be there with forklift just about anytime.  You can call or text him at 917-456-7890.

As always, don't hesitate to call me if you have questions or need assistance.

Steve
Ten Amendments, Ten Commandments, and one Golden Rule solve most every problem. Citrus hand-cleaner with Pumice does the rest.
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jaybmiller View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote jaybmiller Quote  Post ReplyReply Direct Link To This Post Posted: 26 Apr 2022 at 9:11pm
So when does the lease expire ? Them 'throwing the fence maintenance issues'  back at you is a sure sign, they' re not 'ideal' tenants. It could be a slippery slope. say their cattle get out, cross road, hit car, 2 babies get killed and YOU get named in the lawsuit as YOUR fence wasn't secure....(Tenant will say 'I told him, his fence was  bad......')
May not happen but....
Sounds like they're too busy elsewhere...hope you have all the current lease money up front !
Maybe your neighbour will rent your land ?

Options.....always look at options !
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wjohn View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote wjohn Quote  Post ReplyReply Direct Link To This Post Posted: 26 Apr 2022 at 9:13pm
It's tough to find renters willing to keep fence in good shape. On one hand I guess I don't blame them... Not sure I would want to expend any more time and effort than necessary to mostly keep cattle (or whatever) in on a property I didn't own and didn't have a long-term lease on. I'm better off putting that time in on land I own.

On the other hand, as a landowner, the pasture cash rent rate here isn't near enough for me to risk the liability of someone nailing a renter's cow at 55 MPH because my renter wasn't keeping up their half of the bargain by maintaining the fence. Landowner responsible for materials is common here too but ultimately renters tend to not be that motivated as mentioned in my first paragraph. Sure, if someone hits the cow on a road you get to try to demonstrate that the renter wasn't holding up their end of the agreement, in court, and he tries to demonstrate that you weren't holding up yours... I probably have a different mindset on this than most folks, but I deal with liability issues on occasion at work and my pastures are by some very busy roads so it's an easy decision for me. Just the legal fees would counter years of rental income here.

A guy renting a pasture adjacent to one of my pastures always wants to rent mine... He doesn't keep up his half of the fence between us as it stands today. My half is not pretty but I make sure cattle don't get through. Why on earth would I ever rent to him?

Best thing to do is find a renter you can trust (difficult in my experience), or totally have your fences redone on your dime and maybe see if you can charge a premium for rent based on the fact that almost no maintenance should be required unless a tree or something falls on it. May be worth having a serious chat as the previous commenter mentioned... Walk the fences with them, get an agreement in writing as to what all needs to be done when, and if they don't hold up their end during the written and agreed time frame maybe start looking elsewhere.

Edit: I see Dave and Jay posted while I was typing and I am not alone in the liability mindset... Thanks guys.


Edited by wjohn - 26 Apr 2022 at 9:14pm
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200Tom1 View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote 200Tom1 Quote  Post ReplyReply Direct Link To This Post Posted: 27 Apr 2022 at 12:15am
Dad rented his 320 acre cow farm to a couple of brothers. Farm was 5 miles away from home. Steel posts and barb wire was always in the machine shed. When the pile of posts got low, dad always bought more same way with the barb wire. He was retired, he walked buy the shed every day to work in his garden so it didn't take any effort for him to check on the posts and wire. He never had a problem with them and fence upkeep. Sounds like you need new renters.
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DMiller View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote DMiller Quote  Post ReplyReply Direct Link To This Post Posted: 27 Apr 2022 at 5:25am
Had the discussion with the brothers involved, seems they are too thin, been Hog then Cattle farmers then got into row cropping last couple of years keeping cattle and just recently into Sheep Lamb raising alongside the others.  Floods have hurt A LOT, distance to the rented farms(SHOULD have thought on that before doing) is eating time up, profits are minimal and all the investments over the years have just been finance burdens.

I am going to work on fences again this summer, may need to rent a Post Driver and buy some steel pipe post for ends, corners, gates and braces as the available wooden crap is all junk.  I have always set four strand fence, was asked if could go five but not willing to go there if not needed.  Always been told if cow wants thru a four strand will also push a five.  Expenses are write offs, just need to spend my own time for their benefit is my complaint.  The one brother understands while they have been considering leaving this farm as not expandable since other brother took over the farm to the north.  Cost them pretty dearly as to numbers could run here.  I do not see any change in attitude by years end the lease will be pulled.

Already decided should I get all fence back up and shut off the lease will not lease it out further.  Can sell the hay off as shares to neighbor East of us off the Brome Field as will be his to mow, rake and bale for 1/3 the cost of purchased bales SHOULD he want the hay, and I will mow the rest as I feel like it.  Only earned $2400/year on the lease anyway.
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