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Library Formalising land rental transactions

Formalising land rental transactions

Formalising land rental transactions
Beneficial to smallholder farmers, particularly for vulnerable groups
Formalising land rental transactions cover image

Resource information

Date of publication
July 2017
Resource Language
License of the resource

How LIFT promotes formalisation

Second Level Land Certification (SLLC) and Standard Land Rental Contract form: Having SLLC increases security. When it comes to a rental transaction, renters and rentees know the exact size, owners and location of the plot. The Standard Land Rental Contract form is a rental agreement template designed to protect the rights of renters and rentees. Through using this, VGs have additional confidence to rent their land beyond their family circle, giving them access to a wider market of rentees. The combination of the SLLC and the use of the Standard Land Rental Contract form allow VGs to get better value for their land.

The role of Land Rental Service Providers (LRSPs): LRSPs are elected by the community and local administration. They provide access to the Standard Land Rental Contract form and connect renters and rentees. VGs traditionally use land brokers that demand high fees and do not provide transparent information. VGs see the benefit for LRSP services as they now have increased security in the rental transaction and better access to information.

Increased security and control for VGs renting out land... Through increased transparency, LRSPs ensure VGs are in full control of setting the rental price for their land. Reaching VG renters is more time intensive, as LRSPs often need to visit them in their homes to raise awareness and provide the services. This is
mostly done by female LRSPs.

... and increased security and decision-making power for VGs who rent in. Landless youth benefit from the LRSPs connecting them with potential rental opportunities that meet their needs (rental duration, location, size and price). And the longer the duration of land rental, the more they are willing to invest in the land. This increases land productivity and encourages sustainable farming practices.

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