How to Calculate Ground Rent

by Charlotte Johnson ; Updated July 27, 2017
You can charge ground rent for the land on which a structure is located.

Items you will need

  • Tape measure
  • Calculator

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.

Step 1

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

Step 2

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

Step 3

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.

Step 4

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.

Step 5

Add the individual areas to find the total square footage.

Step 6

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.

Step 7

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.

About the Author

Charlotte Johnson is a musician, teacher and writer with a master's degree in education. She has contributed to a variety of websites, specializing in health, education, the arts, home and garden, animals and parenting.

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