Owning and leasing property is one of the oldest forms of entrepreneurship in the long history of trade and commerce. It is the easiest form of entrepreneurship to get into in terms of the amount of expertise required to earn income from property letting. Essentially, you purchase a property, lease it out, and collect income from it on a periodical basis. However, with that mentality, you will fail to maximize the profits that you could make on your land.
The best investors and entrepreneurs know that it’s best to have a diversified portfolio. Having multiple streams of income flowing in ensures that you have a consistent influx of cash in just about any situation. What you do to attract alternative streams of income will determine whether you will be a landlord or a master entrepreneur.
Use technology to your advantage
If you want to become a business magnate and not just a landlord, you have to learn to use every tool that you have available to you. Even if you decide that you are content with subletting your house to tenants, you still need to remain abreast of all laws that relate to property management and relationships between landlords and tenants. You also want to make sure that you are making use of what technology has to offer.
Some developers offer free property management software that makes managing your property easier than ever. This software has tools to help you list and market your property, free rental applications, and even background checks for potential renters. If you use it to its full potential, this software can be like your personal assistant — allowing you to focus your time and efforts elsewhere.
Leverage your property
Business is all about risk and reward. What you are willing to put into your investment — in terms of assets — determines what you stand to gain and lose on your venture. When you’re looking to expand your business portfolio, you have to get the funding for it from somewhere, and sometimes that means leveraging what you already have.
Even before you ever rent your home out, it can be leveraged for cash. But you must be cautious if you decide to use your home as equity. A home equity loan will give you quick access to a large sum of money, and the exact amount will depend on the value of your home. You can use the equity in your home to purchase another rental property, or if you have an entrepreneurial passion that you want to pursue, you’ll have instant capital for it.
This option is more ideal if you have a property that’s been consistently rented, and you know your monthly rent is sufficient to pay the monthly loan balance. Using your home to bankroll another business may seem like an unsure endeavor, but the return on your investment will be great if you are successful.
Get creative with your excess land
If your house sits on a sizeable amount of land, the last thing that you want to do is let that land go to waste. You should see every acre of it as providing you with a different opportunity. What you can do with it is limited only by your imagination. Here are a few examples of ways to turn your extra land into extra income.
Plant an organic garden
Millennials are more health conscious than the generations that came before them. They are also more concerned with the environment than their predecessors. You can grow organic herbs, fruits, and veggies on your land and capitalize on this trend. Millennials will appreciate access to locally-sourced, pesticide-free farm-fresh foods.
You could use your excess land for a farmer’s market
If you still have excess land after planting an organic garden, you can let other farmers sell their natural products on your land and receive a small percentage of every sale that is made. Give your farmer’s market an official look with an open structure that is protected from the elements by an Everdrain roof.
Sublet the excess land out to someone else
If you don’t have any desire to actively cultivate your excess land yourself, you can lease it out to someone else who does and get paid off of their vision.
Your land holds values in various ways. If you want to maximize the profits that you are able to make off of it, then you have to be willing to expand your horizons. Be crafty in how you use your land and take advantage of the technology that is available to you.