Cambridge, southwestern Nebraska | I pay a bonus based on combination of good yields and prices. Seems to work. Lately we have had good yields...not so much on the price but still some bonus to the landlord.
I think the key is where to set the base rent and having them understand the base rent has to be less than the going rent. But, have it that in most years with good yields an/or prices they can receive more rent than an average rent. BUT, there can be years when they may just receive the base rent and no bonus. You kind of want it so it all averages out over time but there is a benefit to you to reduce risk on a poor crop/price year. |
Flex Rent
