Five-Year Lease Valuation for Backyard Segment
Property Location: Near 1500 E & 1800 S, Salt Lake City, UT 84105
Step 1 – Establish Land Value
Two relevant comparables in the area suggest the market range:
Property
Source
Lot Size
Value
$ / Acre
$ / Sq Ft
2165 S 2100
E
Zillow listing
0.25 ac
$799,900
$3.20M
$73.5
971 E 5600
S
County
assessor
0.28 ac
$286,600
$1.02M
$23.5
Estimated midpoint value for unimproved residential land is $45 per sq ft.
330 sq ft × $45 = ~$14,850 (±50% range: $7,800 – $24,300).
Step 2 – Convert Land Value to Annual Ground Rent
Scenario
Land Value
8% Annual Rent
Monthly Rent
Low
$7,755
$620
$52
Mid (recommended) $14,850
$1,188
$99
High
$1,940
$162
$24,255
Step 3 – Sanity-Check vs Substitute Use
Use
Typical Price
Area
$ / Sq Ft / Yr
Community Garden
$20–$40 / season
64 sq ft
$0.30–0.63
Parking Stall
$55–$120 / mo
150 sq ft
$4.40–9.60
Mid-case ground lease ($2.80–$3.60/sq ft/year) is well-aligned with comparable land uses.
Step 4 – Five-Year Lease Projection with 3% Annual Escalation
Scenario
Year 1 Rent
5-Year Total
Low
$620
~$3,300
Recommended
$1,188
~$6,300
High
$1,940
~$10,300
Recommendation
Offer your neighbor a lease starting at $90–110 per month with a 3% annual increase. This
provides a fair, market-based valuation for exclusive use of the 330 sq ft yard segment.
Key Assumptions to Include in Lease Agreement
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Use – Limited to garden/lawn/pets/storage—no permanent structures or utilities
without written approval.
Maintenance – Tenant maintains yard and landscaping; you (owner) continue paying
property tax.
Insurance – Tenant must carry liability insurance naming you as an additional insured
party.
Access – Access route and gate use should be clearly defined, especially if indirect.
Reversion – At lease end, land reverts in original or better condition. Improvements
transfer to you unless removed and restored.
This valuation and lease structure provides transparency and a strong foundation for fair,
long-term use of your property.