For many investors, land ownership is part of the American Dream. But what happens when the land you own sits idle? While it can appreciate in value over time, growth isn’t always a given. If the land doesn’t appreciate, you may find yourself holding onto a “nonperforming asset.”
If you intend to hold onto the land, whether in the short term or with the intention of passing it down for generations to come, you’re likely subject to property taxes and liabilities that can cost you.
And while it can be fun to dream of striking oil on your property like a scene from a 1960s sitcom, there are more realistic ways to generate income from your unused land that don’t rely so heavily on luck.
Land ownership presents a host of opportunities that can help offset its costs and generate profit depending on your level of involvement and tolerance for intrusion. Whether you own land already or intend to buy some in the future, here are some ways to make the most of your investment.
Glamping site
Glamping, an oxymoronic portmanteau of glamour and camping, has exploded in popularity in recent years, boasting a $3.45 billion market in 2024 and expected to grow an additional 10.3% over the next five years.
The glamping trend lures those who seek the adventure of the great outdoors without sacrificing modern comforts and luxuries like electricity and running water. Turning your unused land into a glamping destination can attract a wide range of folk depending on your willingness to invest in amenities.
Traditional camping requires only a nice spot in the wilderness, but to score a return on your glamping site investment, you may also need to trick out your land with amenity-rich motor coaches, campers and luxury tents. Building this infrastructure will add to your investment, but it will broaden the appeal of your glampsite to include a wider range of guests, making a place for those who want to glamp but don’t own a palace on wheels.
Cell tower lease
If your land has proximity to power and communications utilities, leasing a small piece for a cell tower can net passive income from your property. Typically, the operator of the tower will finance its construction, eliminating overhead cost to you, and you can earn $400 to $2,000 a month, with annual escalations.
The amount you can earn each month depends on factors like nearby population density. There are several companies that can help facilitate the construction and lease of a cell tower on your land, from connecting you with a tower operator to assisting with contract negotiations to guarantee fair compensation.
Hunting or fishing lease
If your land is home to wild game and spans a large enough area to comply with local laws and regulations, then leasing it for hunting or fishing purposes can be a great way to generate income.
Doing so requires no initial investment in infrastructure, and in some cases can help you control the population of destructive species like wild hogs on your property. Just be sure to protect yourself from liability in the event of an accident by creating wavers for those who hunt and fish on your land.
Billboard advertising
Not all land benefits from privacy and remoteness, but exposure and visibility can create opportunities of their own. If you have property that borders a highway or other high-traffic area, then constructing and leasing advertising space could help you profit from its location.
Stretches of land along roads can allow for multiple billboards at once, and the more visibility your land has to the public eye, the more profitable your advertisements can be. You can construct and operate your own, or – as with a cell tower lease – contract with a third party for either a share of their profits in exchange for the use of your land or a one-time lump sum payment for a permanent easement.
Vehicle storage
Perhaps one of the simplest and most obvious ways to generate income from your unused land is to rent it out as a parking lot. From RVs and boats to commercial trailers, many large vehicles need a place to stay when not in use. If your land has a large, level area, then charging rent for storing vehicles there may be an ideal way to squeeze steady income from it.
Factors like climate, accessibility and security will determine how much people are willing to pay, so investments in paving and shelter, like garages and hangars, can help increase your earning potential.
No matter what you decide to do with the land you own already or are considering buying, as with any venture it’s important to make sure you do it right. That means consulting with professionals like attorneys, CPAs and your financial advisor to make sure that the legal, tax and financial implications of your land-generated income meet your expectations and contribute toward your long-term financial goals.
Sources: Billboard Insider, Grand View Research, Vertical Consultants
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