There are many “out of the box” ideas for undeveloped land in [market_ciy]. Some can even serve to provide an additional income! If you own land in Metro Detroit, check out our latest post for ideas on what to do with your undeveloped Metro Detroit land!
Land is a straightforward and simple real estate investment. There aren’t typically any expenses to deal with other than taxes as a landowner. No repairs to pay for or tenants to evict. However, if you are simply holding land waiting for it to appreciate, you might as well put it to work while you wait. Before you do anything, make sure that your property is zoned for what you want to do. You can’t set up a campground in a residential neighborhood, and so on!
If you own a property in a commercially zoned or mixed-use area, you can lease out the property to local businesses to use for parking. You could also choose to set up a private parking lot yourself, charging cars as they come in. This can be very lucrative if you own land close to an area where special events are held.
Vehicle, Boat or RV Storage
Some people don’t have room to park all their toys. Some communities won’t allow it! Densely populated areas will usually have smaller yards. People who own a boat, RV or additional vehicles, might not have anywhere to put them! By turning your undeveloped lot into storage, you can collect several monthly rent payments with little overhead. Be sure to check your insurance and liability requirements.
If you own property in a rural and desirable area, find out what needs to be done to allow camping on the property. While you could choose to make improvements to the land, beneficial to campers, you could also choose to let people stay there as-is.
Horses and Livestock
If your land is zoned agriculturally, you can choose to keep horses or livestock on the property. This has tax benefits as well. If owning animals isn’t your speed, you could lease to a breeder, providing a monthly income for you with little to no work.
Lease To Hunter or Farmer
If you own a large parcel and it is properly zoned, you might have the ability to lease it to a hunter or farmer. This is actually relatively common as you can find people to use the land for a short period of time. Sometimes, leasing the land for one season to a local farmer can be very lucrative!
No matter where you live in the USA, there are likely traveling events that pop up near where you live. These events pay landowners to lease the space on a short-term basis. You will need to find out the permitting process, but you can use your land to host events such as circuses, Octoberfests, and carnivals. Make sure you have solid contracts with these vendors, limiting your liability.
Make It Green(er)
With green technology popping up everywhere, landowners are using this to their advantage. For example, you could choose to install solar panels on the property, selling the energy back to the electric company for a profit each month.
The best way to generate value from undeveloped Metro Detroit land is to develop it. Check for zoning requirements, working utilities, paved roads, etc. Compare your options before deciding what to build/ What kind of structure can you get up for the least amount of money that will generate the greatest return? Commercial, residential, multi-family? Take a look at the costs to determine what will work for you!