Filters

Lease Land Designations and Usage - How to Find Land for Lease

Articles

Created on Wednesday, August 17, 2016
Updated on Monday, February 26, 2018
by Land Century

Land leases are often unknown to potential land buyers. These are leases that can be given to you by the owner of the land, and government agencies in some cases. The process can be tricky because you actually won’t own the land if you lease it, but you have a right to the land in accordance with the lease that's assigned. It’s a very tricky process, and one that you’ll need to research in-depth in your area.

Real estate agents may be able to help you, and there are some sites online that offer listings for land for lease. A major issue is that many of the sites are unreliable, so you want to be cautious with which site you’re going to lease land through.

Government Auctions

Government auctions do exist that allow certain persons to lease land that is owned by the government. A good example of this is land that is owned by the government, but leased by oil companies. These auctions are often rather expensive, and is a way for the government to make money on land that it retains.

You’ll often find that these auctions include:

- Using the land for minerals
- Land that is on oil
- Land that's used for agricultural purposes

As the leaseholder, you will be responsible for making payments to the government, or whichever entity owns the land, and these auctions can range into the several million-dollar range if there are valuable minerals on the property.

You can find auctions by contacting your local jurisdiction and doing searches online to find potential land lease auctions in your area. Keep in mind that these auctions may not occur in your area, and you may need to travel across states to attend the auction.

Public Auctions

Many states, for example Nebraska, has public auctions routinely for land that is grassland. This is land that is used for grazing, and structures may be included in the lease. Companies often offer these auctions, and you can see an example here.

Types of Leases

There are several different lease types available depending on what you plan on doing with the land. You may find someone that is willing to offer a flexible lease wherein you have virtually full rights to the land aside from ownership. But these are very difficult to find.

The following lease types are the most common:

Hunting

Hunting land may be leased, but this is becoming less common. Essentially, this is land that you’ll have the right to hunt on for a specific period of time. Companies may lease this land to offer hunting to hunters, or individuals may lease this land.

Finding this land is becoming increasingly difficult, and it’s best to discuss this openly with land owners. If you know a farmer or someone that owns a large lot of land, it’s often best to discuss this option with them. Farmers are especially willing to allow you to hunt on their land because many animals will harm cattle or destroy crops and need to be handled appropriately.

Oftentimes, a farmer will grant you this right for free as long as you take care of the “pests” that are harming their land or business.

Oil Drilling

The government, as mentioned previously, often leases land for oil drilling. This is a multi-million-dollar situation, and this all goes through government lease programs. You may be able to find an individual that owns land that is on an oilfield, but this would be a very difficult process.

Grassland

The government and many landowners are willing to offer grassland leases. This is often best done by looking at local jurisdiction auctions as mentioned above. Many of the lots in Nebraska that are listed as grassland allow farmers to either cultivate the land, or use it for grazing.

Grazing is very popular, and you can also talk to local farmers that may have land available that you can lease.

Mineral Land

If a property resides on a gold mine, for example, you may be able to lease the land or go into an agreement with the owner that would allow you to effectively split the proceeds. Why would an owner want to do this? The reason is that they may not have the funds to work the land appropriately, but are willing to allow somebody else to invest in the process for a commission.

Developer Land Leases

Most of the time, you purchase a home with the understanding that you own the land. But a land lease isn't a standard home purchase. Instead, the purchase price is reduced, and the buyer of the home pays the landowner for the right keep the home on the land.

Many landowners will work with developers because they don’t want to undertake the costs of building on the property. Developers will have the right to build on the land, and the landowner will lease the land to the buyer of the home. There are some major considerations with this:

- Finding a lender can be problematic.

- Lease rates can increase over time.

- You’ll build equity only in the home.

- Selling the home may be difficult due to the land lease.

But as the buyer of the home, you’ll have the benefit of not having to pay such a high price when the land is not involved. The best way to find this land is to contact local developers to determine if they have any land lease homes available.

Leasing vs Buying

Leasing is the smart choice for farmers, hunters and for companies that need to drill oil on large lots of land. If the land is not optimal to live on during some seasons of the year, it may be better to lease the land for the spring and summer months if you plan on using it for grazing land.

But in most cases, buying land is the optimal choice if you have the money. When you lease the land, you don’t own it and you may find that the landowner doesn't want to lease the land again when the contract is up. If you using this land as your primary grazing land, this can be very problematic.
Get instant customized notifications for the properties you’re looking for.
Alertik iOS Alertik Android
Share this Article
20 Acres for Sale in Bridgetown, Barbados - International Property Spotlight

Bridgetwon, the capital of Barbados, is a port city on the island's southwest coast. It's known for its British colonial architecture, 17th-century Garrison and horseracing track...

Featured Listings

0.16 Acres
California City, CA
40 Acres
Chloride, AZ
42.64 Acres
Lovelock, NV
0.25 Acres
Los Lunas, NM
29 Lots
Willcox, AZ
35 Acres
Trinidad, CO
10 Acres
Sierra Blanca, TX
15.3 Acres
Fort Hancock, TX
5.54 Acres
Titusville, FL
0.83 Acres
Crossville, TN
*** Royal Westmoreland, Morpheus House, Villa for Sale in St. James ***

Royal Westmoreland is an exclusive Barbados estate and country club. It is a gated community of luxury homes and holiday villas with exceptional facilities, including the world-cla...

New Construction Project for 56 Unit Townhomes in Titusville, Florida

EXECUTIVE SUMMARY 5.54 ACRES / R-3 ZONEDLocated on 5.54 acres in the heart of The Beautiful Overlooking the Indian River City of Titusville, Florida. 4.178 acres zoned R-3 (Residen...

Featured Profiles

Verified Wholesaler

Land Century, LLC

Verified Wholesaler

GreenBridge Holdings, LLC

Verified Wholesaler

BuildFortune, LLC

Verified Wholesaler

Landville LLC

Waterfront Liquidation - Own Waterfront Lot Today! Tennessee's most popular camping place!

ENJOY WATERFRONT PROPERTY FROM ONLY $12,800Camping is one of the most America activities you can do. One of the most beautiful places we visited is located minutes away from Tennes...

Live Your Dream: Start Your Own Business With Perfect Package! 260 Arizona Lots Ready for Land Wholesaling Opportunity! Buy & Flip with LandCentury.com Network!

Western Paradise location offers up to 500% profit potential The easiest way to start your land flipping businessWe give you the platform, you earn the rewardsLandCentury, one of A...

108 ACRES OF LAND NEAR EAGLE LAKE, MAINE IS READY FOR YOU!

We have an exciting opportunity to own land near Eagle Lake, Maine. 108 acres parcel of beautiful, untouched stretch of natural forest is located in New Canada, Maine near Eagle La...

Great development opportunity in The Enclave at The Palms, Northern Belize!

The Enclave at The Palms is a residential subdivision located in the Corozal Province in Northern Belize. This part of the country is very popular with expats, and The Enclave is l...

Be Smart, Live Well in North Port, Florida! Great opportunity!

North Port, Florida, is the place you have been waiting for. One of biggest city in Sarasota County, North Port still feels more like a small town and people hope to keep it that w...

Emerging US Areas with Affordable Properties and Land

It’s no secret that some areas in the US are no longer affordable for most residents. News outlets have recounted shocking stories about the prices of real estate in places like...

Featured Listings

0.16 Acres
California City, CA
40 Acres
Chloride, AZ
42.64 Acres
Lovelock, NV
0.25 Acres
Los Lunas, NM
29 Lots
Willcox, AZ
35 Acres
Trinidad, CO
10 Acres
Sierra Blanca, TX
15.3 Acres
Fort Hancock, TX
5.54 Acres
Titusville, FL
0.83 Acres
Crossville, TN
Using Your 401k to Invest in Real Estate - Advantages & Drawbacks

You want to get in on the real estate boom, but you don't have the liquid cash to get started. You may be able to use your retirement options to invest in real estate. Primarily, w...

Unrestricted Land - What Does It Really Mean?

Unrestricted land usually means that the land doesn't come with the same restrictions homeowner's associations impose, like home size, color or style. You may be able to place a mo...

Featured Profiles

Verified Wholesaler

Land Century, LLC

Verified Wholesaler

GreenBridge Holdings, LLC

Verified Wholesaler

BuildFortune, LLC

Verified Wholesaler

Landville LLC

What are Tiny Houses and Are They Worth It?

Tiny houses are taking the world by storm. A lot of people are selling their larger homes and building or purchasing a tiny home. And they’re saving a lot of money in the process...

How Much Does It Cost to Build a House Yourself?

Imagine being able to build your dream home with your own two hands. As romantic as it sounds, building a home takes a great deal of time, work, dedication and skill. But if you ha...

What are Real Estate Investment Trusts and How Do They Work?

When it comes to real estate investments, you'll see a lot of people talking about REITs, or real estate investment trusts. Some people call them "real estate investment stock."The...

Business Ideas for Vacant Land - How to Create Income Producing Assets

Vacant land can become an income producing asset. Land is valuable, and while land may be most valuable when a structure is built on it, this doesn't mean it can start producing in...

How Blockchain Could Change the Real Estate Industry

You've heard of cryptocurrencies – unless you've been living under a rock – but you're not sure how they work. Bitcoin, the world's largest cryptocurrency, is run on what's cal...

Create your own user feedback survey