How to Calculate Ground Rent

You can charge ground rent for the land on which a structure is located.
You can charge ground rent for the land on which a structure is located. (Image: house for sale image by itsallgood from

In some real estate markets, you may see the term "ground rent" used. This refers to the rent paid on the parcel of land on which a structure sits. You may be interested in entering this type of contract if you want to sell a house or a mobile home, but you don't want to sell the land on which the structure is located. In this case, you must calculate a figure for your ground rent and advertise this stipulation when you sell the home.

Things You'll Need

  • Tape measure
  • Calculator

Measure the dimensions of the land that you are going to rent using a tape measure.

Sketch a rough drawing of the parcel of land and write in each dimension that you measured.

Divide the drawing into squares, rectangles and triangles. If the lot is perfectly rectangular or square, you won't need to divide the drawing into separate shapes.

Calculate the area of each shape. For square and rectangles, multiply width times length. For triangles, multiply the base times the height and divide by two.

Add the individual areas to find the total square footage.

Determine an amount per square foot. You might want to check with a few local real estate agents in order to find a competitive price for your area.

Multiply the set amount per square foot times your square footage to calculate the ground rent. For instance, if the lot is 15,000 square feet and your set amount is 1 cent per square foot, multiply 0.01 by 15,000 to get a yearly ground rent of $150.

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