How to Make Money on Your Land

How to Make Money on Your Land

Your land holds value, which is probably why you own it. But let LandGate help you to understand the various ways you can make money on your land. You may have heard of mineral owners receiving large bonus checks for leasing their mineral rights, but not all land is prospective for oil and gas. At LandGate, we know exactly what your property rights are worth and we want to share this knowledge with you. Even if there is no oil and gas under your land, there are many other ways you can make money on your property.

Oil & Gas Mineral Rights

If your land is located in an area prospective of oil and gas, you have the ability to lease your mineral rights and receive a cash bonus just for signing the lease. Bonus is paid to you on a per acre basis. So, the more land you have, the higher the bonus. At LandGate, we know exactly what your minerals are worth, and we market your minerals to multiple oil companies to make certain you get the highest possible bonus. In the lease, you will also retain a royalty. Therefore, if the operator successfully drills a well on your land, you will receive a royalty check every month.

Lease Mineral Rights

Wind Rights

Wind Turbines can provide a steady and predictable income to landowners while your property continues to appreciate in value. Similar to leasing mineral rights, a company wanting to build a wind farm will pay you a cash bonus when you sign a wind lease. Then you can receive an annual payment based on the number of turbines installed and/or an annual royalty payment based on the megawatts generated from your property. The payments will vary based on the number of turbines installed on the property. On average, a smaller single wind turbine lease could be valued at around $8,000/year with a larger turbine bringing between $50,000 to $80,000/year.

Another great benefit is wind turbines can provide a new source of income to landowners without interfering with farming and ranching operations.

Lease Wind Rights

Solar Rights

Leasing your land for the installation of solar panels can also provide a steady and predictable income to landowners while your property continues to appreciate in value. There are many state and federal tax credits and incentives that motivate companies to invest in leasing land for solar rights and constructing solar farms.

Historically, landowners receive an annual rental ranging from $200 – $2,000. The average term of a solar rights lease is 25 years. The size and location of your property and the energy demand in your area play a big role in what you will be paid for your solar rights. There are generally 4 phases in the solar farm process. Development Phase can last 1-5 years. If the project is approved, then the Construction Phase should last 2-4 months. Then the Operations Phase could last 20-30 years. Your annual rental will increase significantly during this phase. At the end of the Operations Phase, unless extended, the Decommission Phase will begin. In this phase, they will remove solar panels and supporting structures before restoring your property to its original condition.

Lease Solar Rights

Water Rights

Water rights are extremely valuable. But their value depends on a lot of variables. You need first to understand a few facts and terms about water rights. Did you inherit a property with a Center Pivot? Is your land located near a lot of oil and gas drilling rigs? Location is important. Let us help you market your water rights for lease and learn more about owning water rights.

Lease Water Rights

Cell Towers

Everyone needs a stable internet connection. But these days, we need bandwidth for more than cell phones. We have internet-connected alarm systems, house lights, security systems, TVs, even refrigerators. Again, location is critical, but property size is not as important. Cellular providers are willing to pay in a range of $200 per month to $150,000 per year. When it comes to leasing your land for cell towers, you can also continue to lease your land for farming, ranching, and oil and gas as the cell towers won’t interfere with these resources.

Lease Cell Towers

Agriculture, Ranching, Timber, Hunting and Fishing

Will your soil grow crops? Will your pastures hold cattle? What is your stand of timber worth? Will outdoors men and women be attracted to hunting and fishing on your land? You can lease your land for agriculture. Let us help you with farming, ranching, hunting, and fishing leases.

Lease Agriculture

LandGate has the one of a kind valuation tool to assist you in knowing what your property is worth. And just as important, we can answer your questions and let you know what additional questions you need to be asking about making money on your land. Our inventory of buyers acknowledges that our valuation tool means them have to pay more. Let LandGate make sure you are paid more.

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