Funny, when I bring up the subject of growing things on your rental property to increase your side income, typically the first comments have to do with newly legalized marijuana.
While pot gets a chuckle from everyone, that’s not the only way to make extra money from a rental.
While acknowledging the profit potential, I want to direct your attention to some less obvious ideas.
What is Land Use?
Consider the area that surrounds your rental; the space between your building and border. How much area is out there? What kind of sunlight does it get?
Managing and marketing the area just outside of your rental’s structure, both land and air space, is what the land use category is all about.
- Could you fence off a section without negatively affecting your existing residents?
- Would removing a section of property from your residents make their lives better?
- Could you reduce your lawn maintenance time and cost?
If so, let’s monetize that space. Here are some examples:
How to Monetize Land
Some (mostly rural areas) rent their extra land for cattle grazing or rent their land for “access” to other grazing pastures or planting crops.
2. Fruit Trees
Some grow trees, both for nuts and or high demand fruit (like avocados) or for the timber itself.
3. Shade Trees
I’ve even heard of an owner growing shade trees and increasing the rent to account for solar heating in winter and cooling in summer.
Beekeeping is also a concept to consider. In several states, keeping a certain number of hives allows you to categorize your property as agricultural. Whereas you might realize some profit from the honey, pollination agreements and other products directly pertaining to the bee, you could qualify for a hefty discount on your property tax!
It might be worthwhile to recruit a beekeeper to set up on your property.
5. Local Gardens
If you’re in an urban community, farm to fork restaurants are looking for plots for herbs, peppers and other vegetables. Don’t dismiss what a small plot can fetch in return for a very small amount of setup work.
Breaking Down Your Land Use
Let’s drop these ideas into a breakdown table.
|What:||Monetize the space outside your rental’s structure|
|Why:||Your property has natural resources, elevation above sea level, sun exposure, minerals, traffic count, etc. They are valuable assets that can be monetized to increase your net income.|
|Increase Net Income By:||Renting use or repurposing the space outside your rental.|
|Possible New Income Streams:||
|Steps to Implement/Test:||
This cash flow stream is not always on a monthly basis and your local ordinances may disallow some activities (such as beekeeping).
Don’t discount small income streams. They typically lead to larger and more profitable ideas.
When it comes to land use, your rental’s proximity to the end-user may be its most valuable asset. So pay attention to businesses surrounding your rental.
Try to anticipate their needs and don’t shy away from competing for their business.