The construction part of leasing a land is the tricky part. Cus if they do not renew the lease then they lose all the money they spent on it, if the leaser was the one to build the stuff before you lease then what's the point of leasing, he can just run and make money by himself. One way could be to refund the construction cost, but that could be abused tbh
The construction part of leasing a land is the tricky part. Cus if they do not renew the lease then they lose all the money they spent on it, if the leaser was the one to build the stuff before you lease then what's the point of leasing, he can just run and make money by himself. One way could be to refund the construction cost, but that could be abused tbh
I mean leasing land with a construction on it is still a way of getting stable long term income with little management and much less risks. Yeah I also believe some kind of refund system would be the best choice and to combat abuse the refund should be set in the leasing terms beforehand so that the risk of both parties are clear before entering any deal
The construction part of leasing a land is the tricky part. Cus if they do not renew the lease then they lose all the money they spent on it, if the leaser was the one to build the stuff before you lease then what's the point of leasing, he can just run and make money by himself. One way could be to refund the construction cost, but that could be abused tbh
The lease could be set where both parties agree on the daily price and duration of said lease.
There could be some extra features like:
- the amount of missed payments before the lease contract gets terminated
- who pays the land tax
- lease guarantor/co-signer that can fall in if payments by the main leaser are not met (feels more trustable if you're the leaser)
- construction/deconstruction allowed y/n (in case there already is a building on it that the leaser doesn't want removed)
- landlord fee (Opt for lower base rent by agreeing to a small percentage fee (X%) deducted from all retail sales revenue generated on that specific land plot.)
It would be nothing but your own fault if you lease a piece of land and then realize you can't afford the construction or payments for more than a week. Also prepare your wallets because I would be surprised if the lease would be anything below $1,000 daily, most likely in the $1,000-$3,000/day range is what I'd expect
The lease could be set where both parties agree on the daily price and duration of said lease.
There could be some extra features like:
- the amount of missed payments before the lease contract gets terminated
- who pays the land tax
- lease guarantor/co-signer that can fall in if payments by the main leaser are not met (feels more trustable if you're the leaser)
- construction/deconstruction allowed y/n (in case there already is a building on it that the leaser doesn't want removed)
- landlord fee (Opt for lower base rent by agreeing to a small percentage fee (X%) deducted from all retail sales revenue generated on that specific land plot.)
It would be nothing but your own fault if you lease a piece of land and then realize you can't afford the construction or payments for more than a week. Also prepare your wallets because I would be surprised if the lease would be anything below $1,000 daily, most likely in the $1,000-$3,000/day range is what I'd expect
$1,000 / day seems very high.
If you make an apartment building for example, you would at least 20 tenants to make $1,000 / day back.
Which is if they pay $50 / day rent and currently in New York City NineNineApartments offers $30 / day housing.
If you do 30$ to be competitive it would require at least 34 tenants to make a profit on leasing the land.
I do not think you can make much money from leasing land (As in the one that is leasing it from the owner). But the Owner will definitely make a lot of money if its $1,000 / day for a lease.
And if you look towards owning a retail store, Even if the Entire city of NYC (159 population at the moment) buys from your retail, and you make 6$ per person (I do not that is likely for most items), you will still not make a profit.
The lease could be set where both parties agree on the daily price and duration of said lease.
There could be some extra features like:
- the amount of missed payments before the lease contract gets terminated
- who pays the land tax
- lease guarantor/co-signer that can fall in if payments by the main leaser are not met (feels more trustable if you're the leaser)
- construction/deconstruction allowed y/n (in case there already is a building on it that the leaser doesn't want removed)
- landlord fee (Opt for lower base rent by agreeing to a small percentage fee (X%) deducted from all retail sales revenue generated on that specific land plot.)
It would be nothing but your own fault if you lease a piece of land and then realize you can't afford the construction or payments for more than a week. Also prepare your wallets because I would be surprised if the lease would be anything below $1,000 daily, most likely in the $1,000-$3,000/day range is what I'd expect
Those are some great additions! 1k USD seems pretty unrealistic to me. Let's say you have a land with an apartment complex on it and you think how much you could charge when leasing it to someone else. You can't just go with the land value. You would calculate the potential daily revenue minus expenses which leaves you with the profit. From this profit you can take a percentage as daily lease. So an for example an apartment with the potential to generate 300$ daily, will be leased for 100$ a day. As the owner you have to lease to others with a low enough margin that the leaser still manages to turn a profit, otherwise no one will lease
Those are some great additions! 1k USD seems pretty unrealistic to me. Let's say you have a land with an apartment complex on it and you think how much you could charge when leasing it to someone else. You can't just go with the land value. You would calculate the potential daily revenue minus expenses which leaves you with the profit. From this profit you can take a percentage as daily lease. So an for example an apartment with the potential to generate 300$ daily, will be leased for 100$ a day. As the owner you have to lease to others with a low enough margin that the leaser still manages to turn a profit, otherwise no one will lease
@PikaDrew "$1,000 / day seems very high." @makedoe "1k USD seems pretty unrealistic to me."
The reasoning for my guesstimate is @XDCDvalues land at $400k+
But maybe if he can get a fixed income without giving up the land, he might be more lenient with lease prices
The reasoning for my price is @XDCD values land at $400k+
But maybe if he can get a fixed income without giving up the land he might be more lenient with lease prices
Yeah I see your reasoning, but even if XDCD values land at $1M+ there is only so much that land can earn and only so much that people are going to pay. Both the owner and the leaser will have to meet somewere in the middle
