land rent

Land rent is the payment made for the use of land, reflecting its capacity to generate value or produce benefits, such as crops, buildings, or development opportunities. It is determined by factors like location, fertility, and demand, and does not typically include improvements made to the land. Essentially, land rent compensates the landowner for the natural, inborn potential of the land to yield economic returns, while tenants or users pay this rent to access its productive use without owning it outright.