Vacant land can become an income producing asset. Land is valuable, and while land may be most valuable when a structure is built on it, this doesn’t mean it can start producing income for you now.
We’re going to explore a few business ideas for vacant land that owners can implement to make money off of their property.
How to Earn Money from Vacant Land
Vacant land can help you start earning money in several ways. Of course, I don’t know the type of land that you own, so it’s difficult to say exactly what you can do with your land. But I do know the many ways that people are creating income producing assets from their land.
You can make money buying land in a few ways:
- Sell the land. You can hold on to the land and sell it in the future. This is a return on investment that can be very high, but you need to understand how land in your area appreciates. Land can also be cleared, leveled and prepared for building, which will push the price of the land up drastically.
- Storage. A simple way to make money off of your land is to allow others to use it for storage.
- Foresting the timber. Your land’s timber is valuable. A lot of owners will plant trees, hold on to the land and sell the timber when it can be harvested. You can also use the trees for your own firewood business, selling the wood off to institutions like schools or tea factories for their boilers. When used as a source of timber, the type of tree will dictate how long it takes for the tree to mature. Maturity can be 7 years or 50 years – it all depends on the wood type.
- Campground. The rise of big cities has led many people to camp when going on vacation. A nice, peaceful time away from civilization is all that a lot of people need to feel grounded. The great news for a lot of people is that there are campground options everywhere. And as a land owner, people will pay to simply camp on your land. You’ll want to find out how much insurance would cost for this type of business venture.
- Solar energy. If you have the money to install solar panels or want to rent the land out to a company that wants to install solar panels on your land, this can be a very lucrative option for you. The goal is to work with energy providers or companies that want to purchase the solar energy you produce. A lot of small businesses are popping up that are creating their own solar farms and selling the energy back to the national grid. You can work with these businesses, or pay for the upfront costs yourself.
What to Use Vacant Land For
We’ve already discussed a few ways that you can use your vacant land:
- Solar farm
But there are other options available, too. You can choose to use your truly vacant land for any of the following:
- Junk yard. I know this isn’t a business everyone would entertain, but a junk yard is an easy way to make money. Unwanted items are brought to you, you store the items on the land, and then sell the items for scrap. This can become a full-time business, but this is a hands-on way to use vacant land that many owners pass up because they have too many commitments.
- Hunting. A lack of large parcels of land has caused hunters to rent private land for their hunting needs. The great part is that you don’t have to do anything besides give the hunters the right to hunt on your land. A hunting property is easy income, and hunters will pay several tens of thousand shillings for trophy hunting especially foreigners.
- Billboards. If your land is located near a high traffic area, you can also place a billboard on your property and rent it out. Businesses will pay good money every month to rent the space.
- Parking lot. Prime land in a hot spot can earn you money off of parking fees alone. A popular lake near me has very little parking, so land owners will charge a minimal fee to allow people to park on their land. Dirt and grassy areas are common, and the lot isn’t a high-maintenance venture.
These are just a few of the very easy methods of using your vacant land to turn a profit. Since there are little-to-no costs in upkeep for these ventures, they’re a great option for most land owners to pursue.