Lease Land

If you own land and do not plan to use it yourself, you have various options. You can either sell your land or generate income through land leasing. If you want to lease your land, it makes sense to thoroughly familiarize yourself with the conditions of land leasing in advance, from setting lease prices to the lease agreement. Below we answer all important questions about land leasing.

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Advantages of Land Leasing

Long-term Income Source

By leasing your land for PV or solar systems, you can generate long-term secure income in cooperation with Milk the Sun.

Optimal Use of Unused Areas

Agriculturally less usable or fallow areas can be effectively used for energy generation.

Attractive Returns

The demand for renewable energy and the promotion of solar projects lead to attractive lease rates.

Low Operational Effort

The operating costs and maintenance of the systems are covered by Milk the Sun. Additional effort is completely spared for you.

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Milk the Sun - Largest Brokerage Platform for Land Leasing

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Premium Online Marketplace for Solar Investments Since 2012

Since its founding in 2012, Milk the Sun has positioned itself as a leader among online marketplaces for solar investments. We specialize in brokering newly constructed and existing solar systems as well as project rights, primarily in Germany. Our platform has cultivated a continuously growing user base that benefits from the extensive reach we offer. Buyers discover a wide range of solar systems and project rights with us that precisely meet their requirements.

Over One Billion Euros in Photovoltaic Projects Brokered

Since 2012, we have brokered solar projects with a total capacity of 1.875 GW, corresponding to a transaction volume of over one billion euros. This underscores our significant contribution to the market. Our expertise is based on over a thousand successfully completed transactions, making us a reliable partner for buying or selling solar projects. We strive to create optimal value for both parties, whether it's rooftop solar systems or ground-mounted solar parks.

Broad Network of More Than 1,700 Project Developers

We work with over 500 domestic and 1,200 international project developers to provide an extensive selection of solar systems. These cooperations enable investors to choose from a diverse range of new and existing projects accessible through our platform. These partnerships not only expand our range of offerings but also improve the variety and quality of available projects.

Community of Over 52,000 Solar Investors

To date, our platform has attracted more than 52,000 customers interested in solar investments. Since our launch, we have consistently received new inquiries from interested parties and continuously update our comprehensive database with the latest projects. Project developers or solar system owners benefit from our extensive network and expertise to efficiently market their projects and secure optimal conditions.

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What Types of Land Are There?

Generally, any piece of delimited land is considered a plot. Types of land are distinguished between undeveloped and developed as well as residential and commercial plots. Undeveloped land can either already be developed, so that building can begin immediately, or be in the planning stage for development. Agricultural land also counts as undeveloped land. This means that you can rent or lease your undeveloped land.

When land is already developed, it may contain single or multi-family homes, as well as offices, commercial and storage halls. Developed land with office buildings is considered commercial property. There are also plots that are used for both private and commercial purposes and are considered mixed-use.

Which Land Is Suitable for Land Leasing?

Ideally, the land area is a conversion area that cannot be managed in any other way. Such an area is particularly well suited for land leasing. This can include land areas with contamination, quarries, or plots with slopes. If you want to lease your land, the area should be at least 10,000m².

Lease Land for Solar Systems

When leasing your land for solar systems, another criterion must be considered. When leasing land for solar systems, the land area should be largely free of shading, as land leasing for solar is only sensible if the solar modules can absorb the sun during the day. As soon as part of the solar system is in the shade, this part cannot be considered in the area calculation and thus land leasing for solar systems is less profitable.

Lease Land or Rent Land: Differences

If you don't want to use your land yourself and want to transfer its use to a third party, you have various options. You can rent or lease your land. Often these two terms are used synonymously. Both forms have in common that you grant the contractual partner usage rights to your land. However, there is also a difference. A tenant only has a private right of use, while a lessee may additionally generate profits from the leased land. For this, the lessee pays the lessor a fixed lease payment.

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What Is a Lease Agreement?

Leasing Land: If you own land and want to lease it, you must pay attention to several things in the lease agreement. But why do you need a lease agreement and what should it contain?

Leasing Land: This is considered uncomplicated and is often concluded on agricultural land without a written contract. However, if you want to lease your land for more than two years, an oral lease agreement is invalid and accordingly a written contract should be concluded. In general, it is strongly recommended to draw up a written contract that is as detailed as possible. We have summarized below what belongs in a lease agreement.

1. Term

The lease agreement specifies the term for the land lease. The lease agreement can be concluded either for a fixed term or indefinitely.

2. Termination of the Lease Agreement

In addition, there are legal notice periods that must be observed. If you conclude an indefinite lease agreement, this is one year. For extraordinary terminations, you can terminate with a notice period of six months to the end of the year. If you decide to rent to a private person with an indefinite lease agreement, terminating the lessee is not easily straightforward. The lessee, on the other hand, has the legally prescribed right to a notice period of three months. If the lease agreement has a fixed term from the beginning, it automatically ends after the agreed period expires.

3. Determination of Lease Payment

Land Lease Price: The negotiated lease payment is also recorded in the lease agreement. A distinction is made between a fixed and a revenue-dependent lease payment. Both forms are explained further below.

4. Operating Costs

Operating costs can also be recorded in the lease agreement. These include street cleaning, garbage collection, property tax, sewage charges and building cleaning. Operating costs can be paid monthly or annually.

5. Usage Rights

The usage rights are also defined in the lease agreement. Among other things, the contract should describe exactly what is being leased and what profits may be generated from. If renovations or changes to the use of the land are planned, these should also be recorded in the lease agreement and conditions for handling after the lease expires should be established.

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Land Lease Prices - Is It Worth It?

If you plan to lease your land, you are certainly also concerned about the topic of land lease price. You can benefit from many advantages with land leasing. First and foremost is the long-term yield maximization of the unused area. If you set a term of up to 40 years in the lease agreement, you receive long-term planning security and benefit from a high lease payment for up to 40 years.

Regarding the topic of land lease price, you can increase the value of the land by leasing it long-term for a photovoltaic system. When you lease your land, you also make an important contribution to environmental protection and the energy transition. When you lease your unused land area to a lessee, the land can be used sustainably and environmentally friendly for the generation of clean electricity.

Lease Land: Finding the Right Lessee

If you want to lease your land, you must first find a suitable lessee. On our PV brokerage platform, you can offer your land for lease and quickly and easily find a suitable lessee.

You benefit from our customer base that has been growing steadily since 2012 as well as our extensive experience, through which we can support you in the best possible way in professional processing. As a rule, we find a suitable buyer for you within a few weeks if you want to lease your undeveloped land or want to lease your developed land. When you offer your land on Milk the Sun, you also ensure that all conditions are set out in a written lease agreement.

Land Lease Prices: Setting Lease Payment

When planning to lease your land, the lease payment is set as part of the lease agreement. You negotiate the lease payment with the lessee of your land. The amount of the lease payment can be determined in the following ways.

Fixed Lease Payment

Lessor and lessee of the land can set a fixed lease payment. In this case, the lessor usually sets the amount of the lease payment and the lessee agrees.

Revenue-Dependent Lease Payment

Furthermore, the lessor has the option to set a revenue-dependent lease payment. The monthly lease payment to be paid is based on the revenue generated by the lessee. In this case, it is common to agree on a fixed base rent and set a share of the revenue on the land.

Professional Support for Land Leasing

Benefit from Milk the Sun's years of experience in brokering land for lease. We find the right lessee for your unused land area in the shortest possible time. We support you in processing the project, so you save on expensive marketing and complex sales. If you want to lease your land, you can access the world's largest network of photovoltaic investors at Milk the Sun and thus achieve the highest possible profit for your land. At Milk the Sun, only pre-vetted investors are offered for land leasing.

Land Leasing: The Checklist

Find the Right Lessee

If you want to lease your land, you can either place ads in various portals or local newspapers through elaborate marketing. If you want to find a suitable lessee quickly and easily, it makes sense to access the broad customer base and extensive experience of Milk the Sun and offer your land for lease on the world's leading PV brokerage platform.

Draw Up Lease Agreement

If you plan to lease your land, all framework conditions should be recorded in a lease agreement. Milk the Sun also supports you in this process, ensuring the smooth processing of your project.

Determination of Lease Payment

In the professional marketing of your land, Milk the Sun can provide the best possible support due to its experience in successfully completing more than 1000 PV projects. This way you achieve the highest possible profits when you lease your land.

Generate Long-Term High Lease Income

Leasing Land: This way you can secure above-average high lease income for many years. When you lease your unused land area, you benefit from long planning security through the long term of the lease agreement of up to 40 years.

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Land Leasing for Environmental Protection and Sustainability

When you lease your land, you make an important contribution to environmental protection. By leasing your undeveloped land, clean and sustainable electricity can be generated with solar energy. In this way, you contribute to the energy transition with land leasing.

Tips for Land Leasing

1. Have the Legal Security of the Contract Checked

Lease agreements can be complicated and extensive. When you offer your land on Milk the Sun, we support you throughout the entire land leasing process and check your lease agreement for gaps or potential difficulties.

2. Check the Lessee's Creditworthiness

If you want to lease your land, you should check the lessee's creditworthiness in advance, as with a classic rental agreement. When you process your project through Milk the Sun, you are generally only offered pre-vetted lessees.

3. Notice Periods

When leasing land, you should consider the termination of the contract before concluding the lease agreement. When you offer your land on Milk the Sun, we advise you on this. For leasing residential land, a notice period of six months applies according to § 584 BGB. Furthermore, it should be noted that termination can only occur at the end of the lease period and at the latest by the third working day before the expiry of the six-month period. In the event that the lease period spans more than 30 years, there is the possibility of termination with two years' notice.

4. Transfer Rights

For some types of land, the transfer of rights must also be considered when leasing land. For example, if land includes bodies of water and these waters are fishable, such a situation is usually resolved in the lease agreement. Even for land that is suitable for hunting due to its nature, certain regulations must be recorded in the lease agreement. If you decide to offer your land area on Milk the Sun, we will also support you in this point with our years of experience in brokering land leases.

Lease Land: Avoid These Mistakes

Land Leasing: Below we discuss potential mistakes that you should avoid when leasing land.

1. Waiving the Term

According to § 585 (BGB), lease agreements concluded for a period longer than one year are considered indefinite. Thus, the notice period automatically extends by two years to the respective end of the lease year. This regulation should be considered when concluding the lease agreement.

2. No Oral Contract

As mentioned above, some lessors conclude oral lease agreements for their land area. However, oral contracts can lead to problems and disagreements. Therefore, it is generally advisable to conclude a written lease agreement.

3. Forgoing Expert Advice

When leasing land, it is important to ensure that all permits and regulations are complied with and that the lease agreement meets legal requirements. Benefit from the comprehensive and professional advice at Milk the Sun when you offer your land for lease on our PV brokerage portal.

Lease Land: Conclusion

Land leasing for solar energy proves to be an extremely lucrative source of income with stable and long-term rental income. The growing demand for renewable energy and long-term lease agreements offer financial security and attractive returns. Through low operational effort and the assumption of operating costs by solar system operators, you as a lessor are relieved and can make optimal use of your land area. Land leasing for solar energy is not only a financially attractive option but also an environmentally friendly decision. By using renewable solar energy, landowners make a significant contribution to environmental protection. The reduction of CO2 emissions and the promotion of sustainable energy sources contribute to the energy transition.

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