Property Letting Articles

4. Service Rents.

Anciently, in most countries, a very considerable proportion of the land not in the immediate possession of the owners was held by its occupiers on condition of their furnishing the owners with certain quantities of labour, or of services. In so far as these were of an agricultural character, they were commonly performed on the portion of their estates which the landlords retained in their own hands. This method of occupancy grew out of the state of the cultivators, in most European countries, after the destruction of the Roman power, and the establishment of the feudal system.

Over-Renting and Under-Renting
Whenever it is ascertained that the rent of a farm is too high, it should be reduced. In all cases, too, it will be for the advantage of the landlord to act on this principle without waiting till the tenant is dispirited, his capital wasted, or his credit shaken. The necessary reduction may be made in different ways. Sometimes the landlord makes a permanent and unconditional abatement; sometimes, however, the abatement is only made for a year or two; and occasionally, also, the landlord reserves power, at a future period, if he think proper, to demand payment of the abatement.

But a little reflection will serve to show that a permanent reduction is in all respects most advantageous for the landlord as well as the tenant. A temporary reduction, though absolute and liberal, affords no security in regard to the future. It gives no guarantee to those who may have any dealings with the farmer; and who, were the reduction permanent, might be willing to assist him. By reserving power to demand an increase of rent at any future period, the landlord supposes, perhaps, that he will be able to profit by any rise of prices which may take place in the interval; and this, no doubt, is the case. But he forgets that, in attempting to secure this future and contingent advantage, he destroys the independence and credit of the tenant, and impairs or paralyses his energy. No present liberality can give security for the future; and no tenant can act with confidence, or make outlays in the hope of a distant return, if his rent may be raised at the mere pleasure of the landlord. Nothing, therefore, can be a greater error, than to imagine that proprietors who make permanent abatements to tenants, whose farms are really over-rented, act inconsiderately in regard to their own interests. On the contrary, the plan which they follow is the most likely of any to maintain the value of their estates and the amount of their rent-roll at the highest average level.