Originally posted by M16
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3% Lease Increase per Year
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I would love to get a long term lease with our landowner in place at a fixed 3% increase. Let's you know the cost and secures your hunting land.
I feel like we play Russian roulette every year on our spot because the land owner can randomly change the lease cost or decide to give it to another group. Makes putting a management plan together tough.
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Commercially speaking rent bumps annually are commonplace. The more and more hunting leases are now going to written agreements the more and more they are becoming just like a commercial lease similar to an office building or warehouse. We typically see rent bumps in the 1.5%-3% per year in our warehouses. Its really a good way to know what you are up against vs a surprise double or more increase as others have mentioned. I would push to get a written agreement that states what is to happen and for how long, sounds like your landowner is sophisticated enough to think that way??
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I can see a 3% increase for a specific time period like 3-5 years and then be able to negotiate afterwards. I say this because you want this to be a long term lease.
Reasoning is a 3% increase on say a 3000 lease over 5 years takes the lease to $3,477.83 starting year 6. Depending on the lease there is going to be a certain point where the lease just isn't worth it for various reasons.
Just my .02 cents
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A couple of things...
He could just play catchup in 5 years for the same dollar amount. I think that would sting more than the 3% per year.
It costs to move off a lease. If you like it, have a good landowner, be happy to secure it with those terms.
We all want annual pay raises of a minimum of 3% per year to cover "cost of living increase" but won't stand for the price of things to go up by the same amount.
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