How To Make Passive Income From Land

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Making rental income or flipping worn-out properties are some of the basic ways to make money through real estate. But do you know how to make passive income from land that’s raw and vacant? Read my comprehensive guide to get all the details you need. 

Real estate generates a reliable income stream with unique tax benefits that protect against inflation as well. If you’re planning to diversify your investment portfolio, real estate is an option you should try out. 

However, whenever people talk about real estate, rental properties or property flipping are the most common options that come to mind. 

What if I told you that you could make money with raw land without spending your resources for building extensive structures on your property? 

Yes, land by itself is quite valuable if you know how to put it to use. Here’s my complete guide for how to make passive income from land, so you can start making money right away. 

How To Earn Money From Vacant Land? – Step-by-Step Guideline

If you’ve landed on this page, you’ve probably decided to make money through real estate but are confused about how to. As a beginner, it can be quite challenging to choose a profitable property that provides good returns on your investment. 

While you’ll be investing a huge sum if you buy a worn-out property for flipping or a rental property, you can purchase vacant land at particularly low rates. 

However, purchasing vacant land can be risky. With zoning rules and regulations varying according to location, it’s hard to tell whether the land you are buying can bring you income or not. 

Still, if you conduct proper vetting and background checks, you can easily purchase raw land and start making money with minimal investment. Here are the steps you should follow if you’re wondering how to make passive income from land. 

Step 1 – Acquire Vacant Land 

First of all, you’ll have to acquire the land of your choice. Remember, purchasing prices and rules are different when it comes to vacant land.

Acquire Vacant Land 

For example, when you set out to buy a rental property or commercial land, the pricing will be based on per square foot. But, in the case of raw, vacant land, the price will be negotiated per acre. 

That’s why you’ll need to carefully determine the land’s earning potential before you make your purchase. 

The question remains, where to find vacant land to purchase? You might find it astonishing, but due to the relatively low price range, there’s a high demand for vacant land as well. 

You can easily find suitable land for sale with local land brokers or the GLO(Grand Land Office)’. Better still, you can conduct thorough research and purchase vacant land sitting on your desktop. 

Just like real estate crowdfunding sites that let you buy a piece of a property, there are real estate brokerage sites that let you purchase entire properties by yourself. If you’re considering this option, here’s an accessible platform you should check out. 

Land Century

Land Century is an easy-to-use site where you can sign up to invest and make money with land. You can become a member within seconds without paying any upfront fee. 

Logo Century logo

After you’re a member, you can browse through their wide range of properties, vacant land, and other real estate options. 

What I love about Land Century is its organized arrangement of options. You can easily filter your search results according to the location, category, and price range of your choice. 

Besides that, you can even check out the real-time pictures of the land you wish to purchase and make your decision accordingly. 

Additionally, the platform is highly transparent. It mentions whether the land is up for auction, resale or crowd financed along with the advertisement, so you know exactly where your money is going. 

Step 2 – Choose Your Monetization Method

If you’re an amateur, you’re probably scratching your head thinking about how to make money off vacant land? Well, there are many options if you’re wondering how to make passive income from land. I’ll discuss them later in this guide. 

For now, you’ll need to know the due diligence to conduct before choosing a monetization method for your land. 

Check the aspects such as your plot size, its terrain, zoning compliance, and its location. These factors will ultimately decide whether the monetization method you choose will work for your particular land or not. 

Once you figure these aspects out, you can create a narrowed-down list of possible real estate income options that fit your land’s requirements. 

Step 3 – Make the Necessary Upgrades and Amendments

Now that you’ve got your compliance details in order, you can choose how to make money off land and generate a passive income. 

If you’re confused about creating an income stream from your land, you can choose from the list of options I’ve jotted down below. Whichever option you choose, you’ll have to make the necessary amendments and improvements to your land that facilitate the method. 

For example, if you want to turn your vacant land into a recreational ground, you’ll have to plant grass and build the required structures for indoor activities and storage. 

Similarly, if you’re looking to turn it into a horse stable or farm livestock in the vicinity, you’ll have to clear your land and make it suitable for the purpose. 

Step 4 – Start Earning

Once you’ve decided how to make money off your land and made the necessary amendments, it’s time to earn money. 

Start Earning

If you’re wondering how to make money off 20 acres of land, you can diversify your approach and divide the ground to use for multiple purposes. This will help maximize your investment returns in the long run. 

How to Make Money From Land Ownership? – An Overview

While most people would roll their eyes at the prospect of making vacant land profitable, all it takes is a bit of creativity and research to turn it into a steady passive income stream. 

Now that you know the steps you should follow while thinking about how to make passive income from land, here are some money-making ideas you should consider. 

I’ve listed down the most profitable methods so you can pick the one that suits your land and generate profit from your investment in no time. 

Ways to Make Money Off Land – Passive Income Ideas

If you’re wondering how to make money with land without building any extensive structures, look no further. I’ve listed down the best ways combined with the necessary details required to start. 

Read through my list to select how to make passive income from land while it’s vacant. 

   1. Lease Your Land for Cell Towers

Cell phone companies all around the world are looking for ways to provide better services to their customers. After the popularity of 3G and 4G, we can expect to have 5G services at our palms in the next few years. 

Phone tower

This means the industry is continuously moving towards advancement and expansion. So, if you’re wondering how to make passive income from land, leasing it to such companies is the ultimate idea. 

The best part is, this income is as passive as it gets. You don’t have to look over any improvements or upgrades to your land. All you have to do is look for prospective companies and lease your land out. 

After you’ve completed the formalities, the company can install one or multiple cell towers on your land for a specific period. Make sure to sign a comprehensive contract stating the remuneration you’ll receive before sealing the deal. 

One thing you’ll need to look into before leasing your land out is its level of elevation. If the elevation is low, the company will have to invest more resources in setting up their tower on your ground, resulting in low payment rates for you. 

However, if you fix the elevation beforehand or already have the ideal elevation level, you can earn around $30,000-$50,000 for leasing your land. 

   2. Build a Boat Storage Area

This is one of the easiest methods for those thinking about how to make passive income from land. With the increasing investment in luxury and recreational vehicles, many people are looking for good storage places. 

Build a Boat Storage Area

While you can dedicate your land as a storage space for any commodity, boats prove to be the most profitable. That’s because other vehicles tend to stay in use all year long, whereas boats need to be stowed away for the entire winter season. 

Naturally, the longer the boat stays on your land, the more you can charge the owner. Ensure favorable conditions on your ground to accommodate the boats and protect them against the weather. 

You can charge anywhere around $100-$300 per month from a  single boat owner, depending on the boat’s size and structure. 

   3. Turn It Into an RV Parking Area

RVs are the future of farmhouses and weekend getaways for wealthy families. However, most families don’t have the space to park their RVs on their personal property. So, if you’re thinking about how to make passive income from land, this is an opportunity for you. 

RV Parking

Just make sure you check the city zoning rules to see whether your land is fit for commercial use. If it is, all you have to do is build some reliable fencing around the area, hire a caretaker or two, and advertise your parking lot. 

RVs are expensive, so their owners are always concerned about their well-being. If you can provide the peace-of-mind they need, they’ll pay you anywhere from $100-$200 per month as a parking fee. 

Even if your land only accommodates around 10-20 RVs, that adds up to about $1000-$2000 in monthly passive income. 

Furthermore, once you generate a steady income stream, you can consider building a covered parking area on your land to increase your income. 

Check the building permits of your land before you execute this idea. If you’re allowed to construct a covered area, you can increase the rent to about $500 per RV. 

   4. Lease Your Land For Solar Energy

Sustainability is everything in the world we live in today. That’s why investing in sustainable energy is a profitable idea if you’re thinking about how to make passive income from land. 

Solar panels

If you have the resources, you can host a solar power project yourself and install solar panels on your land. After that, you can make money by selling the power you generate and create a passive income stream. 

However, this method will require a lot of initial investment apart from the money you put in to purchase your land. 

Another relatively cheaper way is to simply lease out the land to major solar developers in the country. Such companies are always looking for vacant land to execute their projects. So, all you have to do is conduct research and lease to the highest bidder. 

Remember to complete a thorough background check of the company you’re working with, as poorly managed start-ups fail to pay up on time. 

Besides that, while leasing your land for solar energy, you should know that the development takes around 5-6 years. This means you’ll be leasing out your land for an extended period. 

If you conduct proper research, you can propose to lease your land for a short-term during the development phase. Then, go on towards a long-term lease later. This will help maximize your income and earn more compared to a single long-term lease. 

   5. Transform it Into a Recreational Spot

Due to the abundance of high-rise, high-density building projects, city dwellers are yearning for an escape from the urban hustle. You can make that possible by turning your land into a garden or recreational spot for your fellow citizens. 

This is an excellent idea for people who’ve bought vacant land in the city. Although you’ll need a permit to execute this idea, it is easy to get the green signal if you’re promoting community recreational spaces. 

Initially, you’ll have to invest some money to plant vegetation, build pathways, and construct proper fencing around the area. 

After it’s done, you can charge a small entrance fee for every visitor and generate some passive income. If your area doesn’t have many parks or recreational spots, your initial investment will pay itself off within a few months. 

   6. Dedicate it to Wildlife Preservation

If you’re not concerned about how to make passive income in hard cash, there are many ways in which your investment can pay off.

Believe it or not, attributing to deforestation’s disastrous effects, many landowners preserve their land for wildlife and vegetation. Especially if you’ve purchased vacant land in a secluded area away from urban dwellings, you can easily dedicate it for this purpose. 

The best part is, it doesn’t require any extra investment. All you have to do is leave the land as it is and take proper measures to prohibit hunting, fishing, or timber harvesting in the area. 

After that, just wait for nature to take its course, and you’ll watch the wildlife return to its natural habitat. 

Although this method won’t bring you monthly returns on your investment, you’ll still be doing your bit to save the environment from encroachment and pollution. 

However, the asset value of your land will gradually appreciate over time. So, you’re actually earning money just by letting your land remain as it is. 

   7. Start Farming

If you have the ideal soil and climate, you can start farming crops on your land. Even if the property wasn’t used for growing crops when you purchased it, you could revamp it to suit your purpose. 


Once you’ve made your property ready for farming, you can take up the task yourself. Or, you can lease it to companies looking for farmland.

By using the former method, you can make money by selling your produce. Similarly, using the latter, you can earn around $50,000-$60,000 in leasing income. 

Most importantly, you can even contact agricultural brokers to purchase farmland in the first place. This way, you won’t have to go through the initial process of repurposing the land. You can use it yourself or lease it immediately for farming. 

   8. Convert it Into an Educational Sanctuary

I know it sounds astonishing, but there’s a lot you can learn while surrounded by nature. If you’re wondering how to make passive income from land and give back to society at the same time, this is the ideal solution for you. 

You can turn your vacant land into an educational sanctuary where children and adults can learn valuable life skills. Here, you can let schools bring their students for field trips or Boy’s or Girl’s Scouts to host camps and outdoor excursions. 

Exposure to nature can help people learn simple things like building shelter, collecting firewood, and even starting a fire. Moreover, if you have the resources to host such teaching programs yourself, you can earn a considerable passive income in the long run. 

   9. Collect Timber

If you’ve recently purchased vacant land, the first thing you’ll have to do is clear the area out. To do that, you’ll probably remove all the trees and vegetation on your land. 

However, did you know that the timber on your property can be as valuable as the land itself? Yes, you can harvest the naturally-occurring wood on your land and sell it for considerable revenue. 

If you manage to generate a considerable income initially, you don’t need to look further for any other options. Simply turn your vacant land into a permanent source of timber and get annual returns. 

   10. Use it to Raise Livestock

If you’ve acquired a property close to villages or farming areas, you can easily use it to raise livestock. 

There’s a long list of domestic animals to choose from; sheep, goats, cows, chickens, and even horses. While you can sell some of them to the food industry and make massive revenue, others can be used to harvest produce like wool and eggs. 

Among other livestock, you can harvest bees as well. With the intimidating prospect of bees going extinct, this investment is quite profitable.

Whether you want to produce honey or just provide a natural habitat for bees to cultivate, your land can prove to be highly lucrative.  

You can sell the honeycombs for food and medicinal purposes. Furthermore, bees can help pollinate your flowers. So, you can grow them on a large scale and consider it a win-win. 

   11. Dedicate it as a Camping Space

Nowadays, while technological advancements dominate the entertainment sector, some people still love to enjoy outdoor excursions in their leisure time. If you own some vacant land you can allow people to camp on it for money. 

Camping space

You’ll have to make some necessary upgrades to the place, such as constructing proper fencing and creating navigation pathways. After that, you can allow families and groups to spend as much time as they like for a fee. 

If you don’t want to put in the initial investment, you can quickly sell the place to an outdoor enthusiast. Many people would be willing to part with their money for a secluded area surrounded by natural attributes. 

   12. Rent it Out for Advertisement Companies

Your vacant land can become highly lucrative if you let companies run their advertisement campaigns on your property. If your property is located near a main road or highway, you can charge high monthly premiums from companies.

The rates for a single billboard in the advertisement industry depend on the impressions received by the billboard. This means the number of people who will potentially witness the advertisement. 

Depending on your plot’s location and strategic value, you can earn anywhere from $200-$1000 for a single billboard. Similarly, because billboards take up minimal space, you can quickly put multiple billboards and increase your income.

Additionally, you can even pair up your outdoor advertisement strategy with other passive income streams to make your land more lucrative. 

How To Make Passive Income From Land? – Is it Possible? 

Keeping my step-by-step guidelines combined with the list of options in mind, generating a passive income from land is definitely possible. 

As a beginner looking to diversify his portfolio, choosing how to make passive income from land can be a challenging decision. However, once you get the hang of it, you’ll realize that making an income from vacant land is a much easier and accessible option than going through the hassle of rental properties. 

Besides that, the list I’ve provided does not exhaust all the options to make passive income through the land. 

Many other methods include leasing it for wind energy, turning it into an orchard, using it for landfills, or even constructing it as an off-grid living area for yourself. 

The possibilities are endless; all you have to do is think out of the box. Invest your land in things that fuel your passion while providing a steady income.

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