Any investor’s dream is to make an asset work for them. If you’ve got a business, this means the business income covers the expenses and turns a profit. If you’ve got a rental property, it means your mortgage and all other expenses are paid for.
Now is the time to ask yourself: Can your land do more for you than just occupy space? More importantly, can it generate passive income? You bet.
If you’re a landowner sitting on an extra acre of land, here are some things you can do to make your land pay for itself and earn consistent income.
Types of Land
Before you make any plans for your vacant land, you need to know what kind of land you’re working with. The type of land ownership affects what you can legally do with it, how much it’s worth, and its profit potential.
If you’re not sure what type of land you’re looking at, check out the county assessor’s website, or check the deed/title if you’re the owner.
Here’s a breakdown of the general types of land.
- Residential land – Zoned for housing, typically near or within existing communities.
- Agricultural land – Used for farming, ranching, or food production.
- Recreational land – Natural spaces set aside for leisure or outdoor activities.
- Commercial land – Designated for business use, such as retail or offices.
- Industrial land – Intended for factories, warehouses, or heavy infrastructure.
- Raw or undeveloped land – Lacks zoning or utilities; completely untouched.
- Timberland – Forested land managed for wood production or conservation.
- Conservation land – Protected areas focused on preserving ecosystems or habitats.
How to Make Your Land Pay for Itself
Here are some unique, but popular ways to generate income and establish new revenue using your raw land. With time, you can turn land ownership into a profitable venture!
Turn It Into a Residential Development
- Difficulty: High
- Time Commitment: High
- Passivity: Demanding
- Startup Costs: High ($100,000+ for planning, permitting, infrastructure, and construction)
For landowners with capital and patience, residential development can turn raw land into one of the most profitable ventures possible. (I know what you’re thinking. With such a high upfront investment, it better be!)
To reach profitability and make your land pay for itself, first look through your local laws and zoning laws. Is your land already zoned for residential use, or will it require rezoning? From there, you’ll need to engage with engineers, surveyors, and city planners to map out roads, utilities, and lot sizes. Fair warning, permitting can take months – even years.
Once approved, you can choose to sell shovel-ready lots to builders or act as the developer and manage construction yourself. Either way, you’ll need to secure financing, navigate regulations, and stay on top of project timelines.
Once the homes are built (or lots sold), the return on investment can be substantial, often in the six or seven figures, depending on location, scale, and market conditions. It’s high-risk, high-reward, but it turns land into livable, sellable space.
Lease to Farmers
- Difficulty: Low
- Time Commitment: Low
- Passivity: Highly passive
- Startup Costs: Low ($0–$500 for lease agreement/legal review)
Let’s say you own a few acres outside town. Instead of letting it sit, you can connect with a local farmer through an extension office, farming co-op, or even online listings like Craigslist or CommonGround.
Once you find a farmer who’s interested, you’ll agree on a few basics:
- How long the lease runs (usually year to year)
- What kind of use is allowed (hay, corn, cattle, etc)
- Who’s responsible for what (fence repair, water access, weed control)
After the lease is signed, your involvement is minimal. The farmer does the work, and you collect the recurring income as rent, which is usually annually or semi-annually. As long as the land stays accessible and there aren’t disputes, it’s as hands-off as it gets.
Rent to RVers or Campers
- Difficulty: Moderate
- Time Commitment: Medium
- Passivity: Moderately passive
- Startup Costs: Medium ($500–$5,000 depending on site prep, signage, fire rings, compost toilet, etc.)
If your land has a decent view, shade, or peace and quiet, it is perfect for campers or RV travelers. With a little prep, you can list your property on sites like Hipcamp or Campspot and start earning nightly income.
Just clear a flat area, mark a spot for a fire ring, and maybe throw up a composting toilet or a water spigot. After taking a few good photos, write up a description and list the site online.
Lease to a Solar Company
- Difficulty: High
- Time Commitment: Low
- Passivity: Highly passive
- Startup Costs: Low to Medium ($0–$2,500 for permitting, legal fees, or consultation)
Sunlight can be your best friend when you let it earn you additional income. Here’s how to make land pay for itself by harnessing solar power.
A solar developer will evaluate your land based on factors like acreage, orientation, zoning, and proximity to infrastructure. If your property checks the right boxes, and if local regulations allow, they’ll offer a lease agreement that allows them to install solar panels and connect to the grid. Soon enough, you’ll be able to generate income from your unused land.
Solar leases typically pay annually or monthly, with rates depending on market demand and utility access. In the end, you benefit from long-term, predictable income with minimal ongoing responsibility.
Timber Management (Let the Trees Grow)
- Difficulty: Moderate
- Time Commitment: Low
- Passivity: Highly passive
- Startup Costs: Low to Medium ($500–$2,000 for a forestry plan, inspections, or thinning work)
If your land is wooded, managing it for timber can turn a natural resource into a long-term investment.
You’ll want to hire professionals to assess your land. They’ll help you create a management plan that outlines what to plant, when to thin, and how to maximize future yields. Some properties already have marketable timber, while others might need time to mature.
Timber doesn’t provide quick cash, but when harvested at the right time, it can result in a large payout. As you work towards profitability, you’ll still qualify for property tax reductions, tax credits, or conservation incentives.
Lease to Grazers (Cattle or Goats)
- Difficulty: Low
- Time Commitment: Low
- Passivity: Highly passive
- Startup Costs: Low ($0–$1,000 for fencing, water access, or simple lease setup)
Want to be a rancher without the hard work? Grazing leases are simple, especially if the land is already fenced. Income is steady, and maintenance is minimal.
Grazing leases are typically annual and paid upfront or in installments. They require very little day-to-day involvement and can help keep vegetation under control while generating income.
Set Up Vehicle or Boat Storage.
- Difficulty: Moderate
- Time Commitment: Medium
- Passivity: Moderately passive
- Startup Costs: Medium ($2,000–$10,000 for gravel pads, fencing, insurance, and signage)
Outdoor storage space is a premium – just ask anyone with an RV or boat. People will gladly pay you to store some of their extra stuff. The best part about storage is that you can utilize any amount of extra land, whether it’s a side yard, an extra garage, or a dozen acres. All you need is some relatively flat land that is safe from any hazards (you don’t want a tree falling on anyone’s boat). If your goal is to establish a micro storage business, you’ll need around a half-acre to an acre of land.
No matter how much land you own, renting extra space is super easy with a peer-to-peer platform like Neighbor. Neighbor connects you to qualified renters in your area so you don’t have to hunt down your own tenants. What I like most about Neighbor is that they handle all the payment stuff. They’ll even guarantee your monthly rent, so if your tenants don’t pay, you’re still guaranteed a steady income.
Getting started is easy, just snap a photo of your extra space and find out how much you can earn.
Lease Land for Billboards or Cell Towers
- Difficulty: High
- Time Commitment: Low
- Passivity: Highly passive
- Startup Costs: Low to Medium ($500–$3,000 for permitting and legal review)
If your property sits near a highway, high-traffic road, or elevated area, it could be valuable to advertisers or telecom companies. Leasing a small portion of land for a billboard or cell tower can bring in steady, long-term income with almost no ongoing effort.
Usually, a wireless provider or advertising agency will approach you with interest, or you reach out through brokers who specialize in these deals. They’ll evaluate your location for visibility (in the case of billboards) or coverage needs (for towers). If your land fits the bill, they’ll offer a lease to install and maintain the structure.
Renting Land to Photographers
- Difficulty: Low
- Time Commitment: Low to Medium
- Passivity: Moderately passive
- Startup Costs: Low ($0–$500 for marketing, insurance, or signage)
If your property has open fields, wooded paths, rustic buildings, or any notable scenic views, it could be an ideal spot for photo shoots. Photographers are often on the lookout for natural, unique locations, and they’re willing to pay for access.
You can offer your land for hourly or half-day rentals. Just list your property on local photography forums, Facebook groups, or platforms like Peerspace or Giggster.
The cool thing is that you’re not altering the land or building anything new. You’re simply offering what you already have and charging for the time. It’s flexible, creative, and an easy way to earn extra income with little to no maintenance costs.
Grow Specialty Crops
- Difficulty: Moderate to High
- Time Commitment: High
- Passivity: Demanding (unless leased out)
- Startup Costs: Medium to High ($2,000–$15,000+, depending on irrigation, tools, fencing, and crop type)
Unlike large-scale row crops, valuable crops can command premium prices. A well-run small plot can bring in thousands per season. And if you prefer not to farm yourself, you can lease to a grower or partner with someone experienced.
Start by researching what grows well in your climate and soil. Popular options include lavender, garlic, mushrooms, ginseng, or heirloom vegetables. Once you select your crop, you’ll need basic equipment, a water source, and a planting and harvesting plan.
You can sell your harvest at farmers markets, directly to restaurants, or through CSAs (Community Supported Agriculture). Many small-scale growers also use social media or farm stands in the local market.
Rent to Beekeepers
- Difficulty: Low
- Time Commitment: Low
- Passivity: Highly passive
- Startup Costs: Low ($0–$500 for basic site prep or fencing)
If your land is quiet, flower-rich, and away from heavy traffic, it could be the perfect location for a beekeeper’s hives. Beekeepers are often looking for safe, pesticide-free spaces where their colonies can thrive.
You can lease a small piece of land, often just a few hundred square feet, for beekeepers to set up their apiary. The beekeeper brings the hives, manages the bees, and handles maintenance. You might install a simple fence for protection or clear a flat spot, but beyond that, your involvement is minimal.
Start Small and Grow
It’s said that people overestimate what they can do in a day but underestimate what they can get done in a year. With focus and some consistency, you’ll be amazed at how much you can accomplish. You don’t need a fortune to start your self-storage business today!
