Most of us are thinking about financial independence. Over 17 million Britons experience financial anxiety daily and for most of them, the major stressor is their financial future. If this is the case, creating passive income streams can be the key to financial security and living the life you want to live. While traditional investments like dividend stocks can be a lucrative passive income stream, only 12 percent of people have invested in the stock market even though two-thirds recognise that the stock market could make them more money. If you are looking for a simple way to generate income without having to do much, you may not have to look further than your land. There are many ways to generate income from your land besides renting it out and becoming a landlord (although it is a great income idea). Best of all, most of these passive options mean you don’t even have to lift a finger.
Rent Your Land For Wind Developers
The UK has been actively pursuing the use of wind energy as a renewable source of electricity for years. In 2019, wind generators accounted for 64TWh of electricity- the UK’s second-largest electricity supply. In a past article by The Telegraph, farmers were encouraged to capitalise on the government’s push for wind energy by leasing out their land for the placement of wind turbines. The article estimated that farmers can rake in up to £47,000 every year from wind turbines alone.They are not alone either. In the U.S. landowners can enjoy wind turbine rental payments of $8,000 annually for a single wind turbine.
Most energy providers will cover all of the installation costs and pay you an income based on the export value, energy used on-site, and any annual changes in electricity rates. To know whether your land meets the criteria, consider whether it has an average wind speed of 6 m/s, access for transport and work vehicles, and a connection to the electricity grid. You will also need to apply for planning permission to install wind turbines. Renewable Energy Hub has a handy postcode locator tool, which can help you with local installers.
Grant A Lease Of Sporting Rights To A Tenant
Another way to gain a passive income from your land is to lease your land out for sporting rights. In English property law, when you purchase or lease a property, sporting rights are inherently included unless it is expressly excluded or has been previously reserved. Therefore, if you are the owner of a large country estate or farmland, you can sell the sporting rights (but keep the land for yourself) or grant a sporting rights license to someone for a specified period of time.
According to the Gov.UK webpage on hunting and shooting wildlife, everyone who wishes to hunt must seek permission from the landowner, such as the sporting rights. The price you can expect per acre would depend on your land’s location and the amount of wildlife on your land. For instance, if your land has a river, creek, or stream you may able to lease the rights for fishing on your land for a higher price. In the U.S. land in Hill Country is well known for the vast open spaces, ranches, and proximity to the water- making them ideal for sporting rights. In the UK, areas like Yorkshire and Durham are popular.
Use Your Vacant Land For A Billboard Lease
Companies are always looking for ways to advertise their products or brand. One of the most eye-catching ways they do this is by erecting advertising billboards, in strategic locations. As a landowner, this can be a great passive income stream for you since it simply requires consideration of a few proposals and your permission. Billboard leasing is incredibly popular and according to estimates by Marketing Donut, billboard advertising can cost companies around £200 per week. One way to get started is to place an ad that you have space available. Alternatively, you can approach outdoor advertising companies like Clear Channel Direct or Billboard Media to signal your interest.
So there you go- 3 simple but very possible ideas for making your land work for you. Making money off of your land does not always have to include renovations and construction plans. If you give it some thought, you may be sitting on a goldmine without even knowing it!
