LEASING LAND FOR ADDITIONAL INCOME
Leasing land is a great avenue for additional income.A recreational lease is an agreement between a landlord and the tenant to participate in a recreational activity on a property of land for a certain period for a fee.Money gained from leasing land for recreational purposes can serve as an extra source of income.
Leasing land is a perfect way of having peace of mind especially for landowners who buy land for speculation in areas away from town. It guards against trespassing, theft, vandalism and illegal dumping.Recreational leases can include opportunities for hunting, fishing, camping, hiking, bird watching, photography and more. Recreational leases are customizable. A landowner should tailor a recreational lease to fit within or supplement their individual goals for the property.
Some qualities of recreational leases that can increase their value are proximity to home, multiple recreational activities available, abundant wildlife, trophy animals, comfort (i.e., a place to stay), roads to easily access the property, little competition from others, friendly lessors, communication of farm activities, guest privileges and opportunity for participation in wildlife management practices.
If you choose to lease your property for recreation, develop a written recreational lease agreement signed by both parties. The lease agreement should define the rules for the lease, protect the interest of both parties and avoid misunderstandings. However, no two leases are identical. It is important to remember that leases are customizable and the lease contract should fit within or supplement the goals for the property.
