Real Estate Terms Glossary
What is Ground Rent?
We can define ground rent as an agreement between a tenant and a landlord, where the tenant pays for the legal right to use a plot of land. In many cases, a ground rent arrangement is created when someone sells a freehold piece of land on a long lease.
With ground rent, note that the tenant usually owns the property built on the land; however, they don’t own the land. Did you know that office buildings and hotels are sometimes subjected to ground-rent arrangements?
Examples of Ground Rent
- Example 1: Ground rent for hotels
- Example 2: Ground rent for malls
Here’s Investopedia’s definition of Ground Rent .
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