Any advice on farm/field renting price?

Farmingfields2

Hi all. Just a question on the rental charge of a farm:
A relative of mine usually rents out an old farm of his each year to horse breeders, off the books, and just for grazing (i.e. no training/show jumping etc)
The farm consists of 4 fields (5 acres / 2 hectares), a large barn and yard, and a shed for storage (as well as running water, and electricity for fences). Usually there are 2 or 3 horses on the land grazing at any 1 time.

What do you think is reasonable to ask for when charging for yearly rent?

I just want to be sure that he's not being taken advantage of.
Thanks all for your help.
Jill

Gods Gift

They could get squatters rights.

Farmingfields2

Gods Gift wrote: »

They could get squatters rights.

If he slapped together a 'contract' while still keeping everything off the books be enough to prevent squatters rights?

The arrangement is renewed every year, but it's only been about 3 years, so hopefully not long enough for them to claim anything..

Also do you think he should ask more than €900 for his farm with the 5 acres for the year?

JeffKenna

Farmingfields2 wrote: »

If he slapped together a 'contract' while still keeping everything off the books be enough to prevent squatters rights?

You can't expect people to give advise on tax evasion.

Mooooo

180 an acre isn't bad at all if they are minding the place right. May not get much more from anyone else. Squatter rights is in cases where people are there without permission, not with permission so I wouldn't be overly worried about that

Say my name

Mooooo wrote: »

180 an acre isn't bad at all if they are minding the place right. May not get much more from anyone else. Squatter rights is in cases where people are there without permission, not with permission so I wouldn't be overly worried about that

2 euro is too much to give if it's not on the books.

This has been going on since day squat with horse owners and the revenue have been targeting horse owners paying rent in cash and landowners not declaring it heavily these last ten years or so.
It's getting harder to hide this carry on since all horses have to be registered and chipped, satellite and on the ground inspections and nosey neighbours.

I know a case where a horse dealer was caught badly for grazing horses on land for years undeclared and the revenue came down hard with a full audit and interest and penalties.

2 Euro is too much for that carry on.
The landowner is a bigger for not going down the legitimate route. They're leaving themselves wide open.

Say my name

To the Op.

The best piece of advice you'll get here is tell your relative to stick that land up for public leasing next year.
And pray that nothing comes of what's being going on before.

Lime Tree Farm

Say my name wrote: »

2 euro is too much to give if it's not on the books.

This has been going on since day squat with horse owners and the revenue have been targeting horse owners paying rent in cash and landowners not declaring it heavily these last ten years or so.
It's getting harder to hide this carry on since all horses have to be registered and chipped, satellite and on the ground inspections and nosey neighbours.

I know a case where a horse dealer was caught badly for grazing horses on land for years undeclared and the revenue came down hard with a full audit and interest and penalties.

2 Euro is too much for that carry on.
The landowner is a bigger for not going down the legitimate route. They're leaving themselves wide open.

+1,

The owner of the land is the only person who can take out insurance of the sheds.

"Agistment or conacre agreements are usually on a seasonal basis, normally 11 months but never 12 months. These arrangements are entered into in order to avoid a lease coming into being and the person taking the land acquiring the rights of a lessee." (Farming and the Law – Karen Walsh, p.126)

Ways to prevent automatic right of renewal of a lease.
"There are a number of ways in which lessees can be prevented from acquiring automatic right to renewal of the lease. One such way is by granting a lease of the land only and then granting a separate and distinct licence or letting for temporary convenience of buildings on the lands to the lessee. In this situation the lessee will not have the right to renewal after 5 years"(ibid. p.131)

Still waters

Gods Gift wrote: »

They could get squatters rights.

Is there any evidence to prove this can happen, i thought as long as there is deeds and an owner to come forward that its virtually impossible to claim squatters rights

_Brian

Still waters wrote: »

Is there any evidence to prove this can happen, i thought as long as there is deeds and an owner to come forward that its virtually impossible to claim squatters rights

It’s happened in places.
I know one family getting advice from solicitor on the issue.

Biggest danger is if the person passed away all sorts can be claimed and there would be nothing to contradict the renters version of events.

ganmo

Does your dad know he can lease it out legitimately and not pay any income tax on the rent?

Gods Gift

Still waters wrote: »

Is there any evidence to prove this can happen, i thought as long as there is deeds and an owner to come forward that its virtually impossible to claim squatters rights

Yeah. 2 places near me. Both involving horses on the land all year round. 1 man died and his nephew could not get them off. 45 acres and they’ve just reseeded most of it. Other place the man is not well but gets a roll of money at Xmas. A big thick roll of fivers. His brother ordered them off but they claim they have rights to it now.

Kevhog1988

Where in the country?