Insurance: detail what types of insurance the tenant must carry and maintain.Improvements: state whether the tenant needs the landlord’s written permission to build improvements or make alterations to the land and whether the landlord can keep the improvements.Government Regulations: clarify which party must ensure the use of the land does not violate zoning laws and who should obtain the necessary licenses or permits.Gate Requirements: if the property contains livestock like cattle or sheep that graze on the pastures, the landowner may require the tenant to keep all gates closed at all times to reduce the possibility of livestock injury or death or a third party injury or death.Facilities: detail whether the tenant is allowed to use specific pre-existing amenities or structures on the property, such as a barn, shed, or camping area.Be sure that leases lasting one year or more are in writing to satisfy the Statute of Frauds in most states Duration: specify the lease term, including any renewal options, possible extensions, or notice requirements.Disputes: describe if parties will handle disputes through mediation, arbitration, or court litigation.Choice of Law: determine which state’s laws apply to resolve any legal disputes.Amendment: state whether future changes to the agreement must be in writing.Access: confirm whether the landlord will still retain the right to enter the land at certain times for particular reasons and detail possible gates or roads the tenant may use.How will the rent be paid? (usually either on a monthly rent, lump sum payment at the beginning of the lease, or based on the yield of crops, such as crop share rent or sharecropping).Why can the tenant use the land? (a description of the permitted uses of the land).Whether the landlord may keep any improvements or reimburse the tenant.When will the lease end? (i.e., after a fixed set of years or if a condition or event occurs).Where is the vacant land or real estate located, or which portion will the landlord lease? (use a legally recognized description for the property like metes-and-bounds, photographs, diagrams, or a detailed description in words).What is the amount of rent the tenant shall pay? (often depends on the length of the lease, amount of land/acres used, and intended use of the land).Who are the parties to the land lease (i.e., the landowner lessor and the tenant or lessee)?.What to Include in a Land Lease AgreementĪ simple land lease should generally have at least the following: Gary E Chapell agrees to lease the site to Marjorie H Calhoun to operate and manage a multi-family residential apartment complex. The example land lease agreement below details an agreement between the landlord, ‘Gary E Chapell’ and the tenant, ‘Marjorie H Calhoun.’ No matter how the tenant will use the land, a land lease allows both parties to clarify and memorialize essential details to avoid future disputes or confusion. R esidential land leases – can include a spot in a trailer park or the right to construct a small cabin in the woods. The lease is for the right to occupy real estate comprised of only dirt and soil so that the tenant could use the land for multiple uses ranging from agricultural to residential or commercial purposes.Īgricultural land leases – can include using land as a farm for crops and orchard trees, as a ranch for hunting wild game and forest animals on the premises, or as a pasture for grazing animals like cattle, goats, and sheep.Ĭommercial land leases – may vary from the right to install a billboard, build a telecommunications tower (i.e., used for wireless cell phone reception), open a fast-food chain restaurant, or develop a large multi-story hotel complex. What to Include in a Land Lease AgreementĪ land lease is an agreement between the owner of vacant land or property (the “landlord” or “lessor”) and an individual or entity who wants to develop or improve the property (the “tenant” or “lessee”).A Commercial Lease Agreement or a Lease/Rental Agreement can be a helpful supplemental form for a landlord if both landlord and tenant agree to reduced rent or modified lease to accommodate specific tenant circumstances, such as job loss.
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