Cambridge, southwestern Nebraska | I rent some land that way. I like it. Landlords like it. We seldom renegotiate rents from one year to another because the bonus will fluctuate with the grain prices so the rent fluctuates also. Seems fair to everyone.
Main thing is you as a landlord need to start with a reasonable base rent. You can't expect the highest rent then add a bonus on top of that.
What the goal should be is the landlord on most years would come out with a little more rent on the end than a regular flat rent since you are assuming some price risk. On low price years, you have to accept a little lower rent.
If you go into the agreement with that in mind it should work out well. |
Cash rent plus bonus questions
