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OT: Leasing land

I had a gentleman from a construction company come in to my office today and wants to lease a bit more than an acre of my property. His company is based about 10 miles away but they have some big jobs a few blocks down the street. He needs an area to store big pipes and other materials in addition to construction equipment. He said he'll need it for at least 14 months.

I wonder what to charge? In addition, I would accept a certain amount of improvements to the property and I have a 10k' building I would like to remove.

One formula for a ground lease is 8% to 12% of the value per year. Would I use the property tax numbers?

Reply to
Tom Gardner
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Value would be market, generally not appraised.

If you choose to go ahead be certain to get restoration clauses when they're done to restore to acceptable conditions w/ suitable penalties if fail to comply so it's painful enough they'll do it.

Reply to
dpb

I'd write it into the contract that they guarantee that they're bonded and/or insured, so that if they go under after they make your land into a superfund site, there'll (hopefully) be a pool of money for you to draw on.

Or just take a chance, and hope and pray.

Do you know any good land-lawyers? This is not a contract that I'd want to write up or sign without advice.

Reply to
Tim Wescott

Contact a real estate broker in your area..perferably a commercial properties one.

What works in Butte Montana is likely to be different than in your burg.

Seriously.

Reply to
Gunner Asch

Indeed. If they dump 5000 gallons of diesel and used motor oil off in the corner...they have to clean it up.

Gunner

Reply to
Gunner Asch

Happens a lot with leased properties

i
Reply to
Ignoramus27831

Indeed it does. So that has to be part of the agreement.

Gunner

Reply to
Gunner Asch

...

"I agree I will dispose of at a minimum 5000 gallons of fuel and/or motor oil on the property during the duration of this lease."

:)

Reply to
dpb

Ha!

Reply to
Cydrome Leader

Another scam is leaving a rental unit full of old computer monitors. Considered to be Toxic Waste, and expensive as heck to dispose of.

Reply to
Cross-Slide

Or junk tires.

Reply to
aasberry

Second son just dropped a pickup load at the salvage yard and got six cents a pound for them - a tank of gas for him.

Reply to
geraldrmiller

A cleansing fire can take care of tires.

Reply to
Cydrome Leader

I've talked to a couple of other people that have leased this company land close to projects they were working on. They said they left the land better than found. They graded and spread gravel, installed fencing, (I already have full fencing) and didn't leave a cigarette butt on the ground. I'm thinking about $650/month and have had my lawyer draw up a fairly standard contract. We'll see.

Reply to
Tom Gardner

I've always felt the best contract can't stop a scoundrel. And the best contract isn't needed if the person has integrity. You're better off spending your time learning about the person.

Karl

Reply to
Karl Townsend

Yeah, see if the potential lessee will pay for Tawm to do a deep background check.

Reply to
Larry Jaques

shit...just have the guy post a bond for clean up costs. Its not a big deal

Gunner

Reply to
Gunner Asch

I'm more worried they might do a background check on ME!

Reply to
Tom Gardner

It's a fairly big and old company that does a lot of State and local Gov. work.

Reply to
Tom Gardner

Good idea!

Reply to
Tom Gardner

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