This guide focuses on technical factors related to leasing arrangements that can benefit both land owners and tenants. It is aimed at non-governmental organizations (NGOs) and others who work with farmers. Starting on page 4, the guide provides information on leasing which NGOs can share with farmers.
In order to understand how leasing arrangements work, it is necessary to consider a number of contextual factors. At the core of effective leasing arrangements is a relationship between land owners and tenants, which is in some way guaranteed or supported by the state. In an effective relationship, each party has certain rights and obligations to fulfil; the role of the State and of the law is to ensure that these rights and obligations are respected.
In some cases, the relationship between land owners, tenants and the State may not be clear or not directly helpful to establishing fair and secure leasing arrangements. Leasing often takes place in situations where social relationships are unequal. When one party is much more powerful than the other, entering into formal leasing contracts is not an easy thing to do. And should contracting arrangements not be protected under the rule of law, a signed lease is not likely to be mutually beneficial.
However, there are many cases where both the tenant and land owner can benefit from having a clear leasing agreement. This guide aims to help people when there is joint willingness to enter in a “win-win” relationship with regard to land tenure arrangements. The guide supports the preparation of mutually beneficial lease contracts by identifying key features that make such contracts effective for both the owners and the tenants.
A leasing contract never exists in isolation. It is prepared and enforced within a specific policy, legal and social environment. The key areas below will need to be considered before conducting any training, to ensure that the information shared with tenants and land owners is as relevant as possible.
REGULATORY ENVIRONMENT
Are there legal or customary regulations controlling leases? If so, are the institutional structures strong enough to enforce them, or is there a disparity between policy and practice, even when leasing arrangements are officially sanctioned?
Are there disparities between legislation and customary law that need to be considered?
Are there any existing laws that may affect a lease agreement by supplementing, regulating or altering the terms of the agreement itself (e.g. rent control laws, land registration legislation)?
Are there reliable, fair and accessible mechanisms (state and non-state) for resolving disputes and for providing remedies when promises are broken?
Are there any local conditions which might affect the terms and conditions of leases (for example, environmental conditions or social conditions)?
OTHER CONSIDERATIONS
What is the literacy level of the participants? If it is low, what kinds of illustrative material should be prepared to supplement the presentation?
Should the guide, or key points in the guide, be translated into the local language before the training?
Are there model leases available to distribute during the training? If so, how complex or effective are they?
