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Video instructions and help with filling out and completing Residential lease extension form
Instructions and Help about Residential lease extension form
Hi my name is Paul Gehringer and I'm the extension legal specialist here at the University of Maryland and a part of the University of Maryland empowers AG logic ation initiative today we're going to talk about in this video sort of a common issue that comes up with beginning farmers and new landlords when they rent start leasing farmland that issue is they use a residential formulas to rent farmland now many of you may laugh at that if you've rented farm land before you may think that's a bad idea but if you're starting out you have no idea you just search the internet you search you know formulas you find a residential lease you think Lisa's or leases and you start using it there are issues with that that we're going to talk about as we go along today and sort of point out to you why you shouldn't do this why you should look elsewhere and kind of give you an idea where some resources exist that can help you develop your own farm land lease as you go along so before we answer the question as you know why is it bad to use a residential formulas and renting farmland let's talk about what Elise's Elise is just a contract between a landowner that's also known as the landlord or the less or and between them between a tenant or the lessee and the idea here is the contract is giving up a use right in the property to the tenant and for that use ride it will typically be for a specific period of time and for some a specific amount of money that's all going to depend on the parties and we're not going to talk about that today the thing we want to talk about is that this lease is also a risk management tool what do I mean by that will think about what you're doing when you're leasing farmland if you're the landowner you may want your tenant to take out crop insurance so you're guaranteed a rental payment every year you may also want them to use certain conservation practices as they're doing the soil working the ground so you may want to include that in there those are things we want to going to want to consider in these leases if you're the tenant you may want to specify how much crop insurance you have to take out the landlord wants you to take crop insurance out you may also want to specify how long the lease is going to be if you have to adopt certain conservation practices so in the end it's a big risk management tool that each one of you are going to negotiate against now why is using a residential form Lee's bad in this case well a residential form lease is designed for the risk involved in running a house or an apartment or condo or some sort of housing unit.