Land Rental Options
Leasing land can be a great option if you are looking to start a farming business, a community garden, or a vacation campground and you do not have the funding to purchase land outright. Read here to learn more about how land rentals work.
If you want land, but cannot afford to purchase it right now, you have options. Rent the land instead. You may not know it, but there are literal databases, and realtors, specializing in land that can be rented. Better still, these land offerings can be used for all sorts of enterprises, including Airbnb, tiny home communities, trailer parks, businesses, or even a community garden.
But how do you find these companies? What is a good price for the rental? Where do you find the contract to use for the deal? Is renting better than purchasing? Purchasing land is ultimately the better deal in most instances, however, postponing an expansion or starting your business is not optimal either. Using these handy tips, you can be sure to find and negotiate a great deal on some rental land.
Resources to Find Land for Rent
Whatever your land rental needs, there are online and in-person resources ready to help you find the land you want to rent today. Here is a comprehensive list of resources to help you find suitable land rentals today.
The Farmland Information Center is an organization that helps you find farmland for rent in the US. All you have to do is call them and ask for information about available rentals in your area.
Tillable is a website that allows you to find suitable farmland for rent in your area. They only list areas that are suitable for sustainable farming practices.
Agriseek is a website that helps you search for farmland in your area, listing available rentals by land quality and location.
Shared Earth is an organization that helps you find land rentals if you are looking to start up a community farm or gardening center. This website functions as a kind of social media platform to connect renters with rentals.
Farmers Connect is a publication that has a classified section where farmers list their available land rentals.
LandandFarm is a website that contains lists of land for rent in your area, whether for farmland or other rental purposes.
Land for Good is an organization that helps you find land for rent for any purpose. Whether you are a community organizer, looking for garden or farming land, or looking to rent land for a campground, this resource helps you find land for rent in your area.
Type of Realtor to Seek Out When Renting Land
When looking to rent land for farming, tourism services, community organizing, or hunting and activities, you want to look for realtors who specialize as professional land brokers. Your realtor should be able to help you assess land quality and the surrounding area to make sure the land is suitable for your rental needs. National Land is an online database and organization that helps you find realtors who specialize in renting land.
Land rentals can be as short as a monthly rental and last as long as 99 years, so you want to make sure your realtor can help you negotiate changes to your lease if you are signing a long-term lease, and make sure that you are getting everything you need out of your land rental. All contingencies need to be covered, so make sure to ask your realtor. When reaching out to a land realtor, make sure you already have a second land realtor acting as your buyer’s agent. This is because the realtor representing the land, represents the seller, not you.
Types of Land for Rent
There are two main types of land leases, subordinated and unsubordinated. A subordinated land lease is more beneficial to the finance lender, whether that be the renter or a bank lender investing for a business venture. With a subordinated land lease, the financier of the rental gets the rights to the land to do whatever they want with the land being rented. This type of rental usually only happens if the landowner is utilizing the land as collateral in a transaction to fund improvements.
An unsubordinated land lease allows the landowner to retain final say of what happens on their land. This type of land lease protects the landowner first and foremost, so it is less likely to outsource funding for an unsubordinated land lease if you are looking to make a land rental with loan assistance.
There are also different ways to rent when you are looking to rent farmland. A cash rental is most common, which is when a renter will pay a fixed price for land to the landowner regardless of how much crops they produce and sell in a growing season. A cash plus bonus rental is when a fixed price is agreed upon for rental, and then an additional percentage is paid from the renter to the landowner depending on the crop yield from the season. A crop share rental is when the payment from renter to landowner is made solely dependent on a predetermined ratio for the crop yielded and sold in a season. Lastly, fixed bushel rent is when the renter pays the landowner in a fixed number of bushels of their grain crop, which the landowner then sells to make a profit.
Benefits of Renting Land for Agriculture
Leasing land for farming and agriculture is a great option for new farmers. Farmland can be expensive, and this can make starting a farming business seem out of reach. There are many options available for leasing farmland which can make the venture of starting a farming business possible for new farmers. Over time, renters can become owners depending upon the rental agreement negotiated. Renting farmland is the cheapest and best option when beginning to start a farming business. Land rental is a very lucrative option for you if you are looking to get into farming and selling produce, or if you are looking to set up a tiny home or mobile home Airbnb rentals. The good news is, renting land is as simple as renting a home or apartment.