Helping Landlords Find the Right Tenant Damona Doye

Helping Landlords Find the Right Tenant Damona Doye damona. doye@okstate. edu Rainbolt Chair of Agricultural Finance Brent Ladd Brent. ladd@okstate. edu Extension Assistant OSU Agricultural Economics Department

AGEC-268, Screening Potential Tenants for Agricultural Land n Osufacts. okstate. edu, Search for Tenant, Landlord n http: //pods. dasnr. okstate. edu/docushare/dsw eb/Get/Document-10077/AGEC-268 web. pdf

Understanding the land’s potential and constraints n Ag. Site assessment tool q http: //www. communitycommons. org/groups/agsite/ q soils, streams, wetlands and ponds, watersheds, floodplains, Karst Geology, nearby communities, legal descriptions, threatened and endangered species and aerial photography n NASS data on county averages q https: //www. nass. usda. gov/

Preparing to lease land n Goal for the land? n Goal for the lease? n Non-negotiables? n Expectations with regards to operating practices? n Qualifications and attributes that you want in a tenant? n Minimum requirements for a tenant?

Tenant screening n Advertising: Include price and minimum requirements to screen parties who do not qualify q Newspapers, electronic lists q Local businesses q Other landowners or producers in the area

Tenant screening n Verify ID if you don’t know the person n Ask for a farm resume n Look for legal issues: http: //www 1. odcr. com n Interview potential candidates n Ask for references

Interviewing candidates n Background and involvement in farming n How the property fits with their operation n Production practices and environmental philosophy n Equipment, special knowledge they bring n Risk management and marketing practices q Farm insurance coverage and agent n Length of lease desired n Plans for communication

With whom do you want to do business? n Do they meet requirements? n Are they dependable? n Are they financially stable? n How easy will it be to establish and maintain a working relationship? n What are their people skills? Communication skills? n Will they be a good neighbor? n Where is their base of operations? n What kinds of questions did they ask?

Follow up with references n Did they pay on time? n Any unpaid rent? n Any legal or tax issues? n Trouble or damage? n How was communication? n Would you rent to this tenant again? n Consider paying for services such as a credit check or background check.

Put the agreement in writing! n Encourages understanding by both parties n Serves as a reminder of terms agreed upon n Legal resource and guide for heirs q Consult with a lawyer n Free lease forms at www. aglease 101. org q q q Pasture Crop Share Fixed and Flex Cash Rental Arrangements Machinery and Equipment Farm Building or Livestock Facility Beef Cow

Leasing resources n n www. aglease 101. org, publications, forms, worksheets www. aglease. info, OSU production and management info www. agecon. okstate. edu/budgets www. osufacts. okstate. edu q q q CR-216, OK Pasture Rental Rates CR-230, OK Cropland Rental Rates AGEC-940 Tax Aspects of Leasing AGEC-198, Negotiation Strategies AGEC-238, Screening Potential Tenants for Agricultural Land n http: //www. nass. usda. gov/Statistics_by_State/Oklahoma/ Publications/County_Estimates/index. php q Cash rents

Other OSU resources OSU Farm Management Facebook https: //www. facebook. com/OSUFarm. Management/ Oklahoma Women in Ag and Small Business Facebook https: //www. facebook. com/OKWomen. In. Ag OSU Agricultural Economics Extension https: //www. agecon. okstate. edu/extension