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3% Lease Increase per Year

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    3% Lease Increase per Year

    So we are in our Third year of a three year contract and the lease owner said he is going to go up 3% every year from now on. Its not that much per member but I have been on long term leases before in the hill country and never had this brought up to me. He said everything increases per year, which I agree, We have passed on some young deer, because we want to be there long term. Seems like we have a good relationship with the land owner...

    Guess pay it and move on until we can't pay anymore or we think its not worth it...

    Thoughts?

    #2
    I'd question the basis for 3%. I get that things escalate but it's not always a fixed percentage. I'd tie it to an actual inflation rate or GDP increase - something more reflective of real price increases.

    Comment


      #3
      At least he’s letting you know up front so you can decide what year it’s not worth it anymore.


      BernieH you can question it all you want, but the landowner makes the rules. Someone will pay it.

      Comment


        #4
        I would much prefer a little increase annually to no increases then one year double or triple. Seems reasonable. I would appreciate something in writing that locks in the 3% for a period of time. It would be uncool to do a 3% annually then one year it doubles.

        Comment


          #5
          Originally posted by BernieH View Post
          I'd question the basis for 3%. I get that things escalate but it's not always a fixed percentage. I'd tie it to an actual inflation rate or GDP increase - something more reflective of real price increases.
          what if that makes it more than 3%? might better decide if u can live w the increase and not give them ideas that might make it go up more....lol

          Comment


            #6
            Originally posted by BernieH View Post
            I'd question the basis for 3%. I get that things escalate but it's not always a fixed percentage. I'd tie it to an actual inflation rate or GDP increase - something more reflective of real price increases.
            This made me laugh. I can see a clause like this in the lease agreement.

            "Notwithstanding this Lease Agreement, the lease cost will escalate annually by the greater of 2% or the year over year moving average of the Bureau of Labor and Statistics Consumer Price Index."

            Comment


              #7
              You’re fortunate that I’m not the landowner. I’d do 10% a year.

              Comment


                #8
                On average over the last five years or so, 3% is a little inflated for Texas. I might counter with 2.5%. But I think his reasoning is sound. In the long run, it might even help keep someone else from scooping the lease out from under you. Personally, I wouldn't be opposed to it, assuming it's a good lease and a good landowner.

                Comment


                  #9
                  Originally posted by TENRMORE View Post
                  So we are in our Third year of a three year contract and the lease owner said he is going to go up 3% every year from now on. Its not that much per member but I have been on long term leases before in the hill country and never had this brought up to me. He said everything increases per year, which I agree, We have passed on some young deer, because we want to be there long term. Seems like we have a good relationship with the land owner...

                  Guess pay it and move on until we can't pay anymore or we think its not worth it...

                  Thoughts?
                  That's a good and very reasonable deal if you like the lease. A lot less than actual lease increases over time is my guess.

                  Lock him in on the 3% and be happy about it. Then in another 1-3 years when guys offer him 30% more than you pay tell him he needs to stand by his 3% per year.

                  3% per year just to have peace of mind is worth it.

                  Comment


                    #10
                    Originally posted by BernieH View Post
                    I'd question the basis for 3%. I get that things escalate but it's not always a fixed percentage. I'd tie it to an actual inflation rate or GDP increase - something more reflective of real price increases.
                    Originally posted by Rick View Post
                    what if that makes it more than 3%? might better decide if u can live w the increase and not give them ideas that might make it go up more....lol
                    Landowner can set rate at whatever he wants. But he can and should include this cost TBH always talks about since we're running out of hunting land..Price and demand.

                    The only way 3% per year is no good is if the OP is already over paying.

                    Comment


                      #11
                      Originally posted by TENRMORE View Post
                      So we are in our Third year of a three year contract and the lease owner said he is going to go up 3% every year from now on. Its not that much per member but I have been on long term leases before in the hill country and never had this brought up to me. He said everything increases per year, which I agree, We have passed on some young deer, because we want to be there long term. Seems like we have a good relationship with the land owner...

                      Guess pay it and move on until we can't pay anymore or we think its not worth it...

                      Thoughts?
                      Originally posted by Snakelover View Post
                      On average over the last five years or so, 3% is a little inflated for Texas. I might counter with 2.5%. But I think his reasoning is sound. In the long run, it might even help keep someone else from scooping the lease out from under you. Personally, I wouldn't be opposed to it, assuming it's a good lease and a good landowner.
                      I don't think he asked for opinions or negotiations.

                      Feels like I'm in the twilight zone. Had to re-read thread... Was offering 2.5% a joke? If the lease is $2,000 per year that .5% would save you $10 LOL

                      Comment


                        #12
                        Originally posted by riverrat1 View Post
                        i don't think he asked for opinions or negotiations.

                        Feels like i'm in the twilight zone. Had to re-read thread... Was offering 2.5% a joke? If the lease is $2,000 per year that .5% would save you $10 lol


                        lmao

                        Comment


                          #13
                          The timber (pine) lease I'm on went up 20% this year. Has not had an increase since 2012, then this.

                          I'd rather gradual instead of a lump increase.

                          If it wasn't East Texas, I'd stay on. As it is, I'm picking up my equipment in Feb. The herd isn't that strong and I've never seen deer eat a pine cone.

                          On the hunt for a new place outside of East Texas.

                          Comment


                            #14
                            I remember in 2015 our old landowner pulled up in the yard.I'd just bought a new powerstroke.He was looking at it,and said **** son.That's a good looking truck.Bet it cost ya' an arm,and a leg.
                            Listen we're gonna go up on the place this year.It jumped 33% lol.
                            We'd been paying the same for 16yrs though.No biggie,we payed up.

                            Sent from my SM-G970U1 using Tapatalk

                            Comment


                              #15
                              Do Not Counter at 2.5% . Silly and petty. Accept it and enjoy. 3% is peanuts, especially for a proven lease.

                              Comment

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