If you own a large parcel of property and are interested in earning some extra money by renting or leasing a portion of your land to a farmer, you may be wondering about your next steps. Monetizing your land can be a fruitful investment, but you'll need to make sure your affairs are in order before doing so or this adventure could cost you. Read on to learn more about some of the things you'll need to do and consider before renting out your land.
If your property is already zoned for mixed use or agricultural use, you shouldn't need to take any additional steps. However, if your property is zoned for residential use only, you could run into some trouble with your zoning board if you enter into a lease allowing non-residential use of a part of your property. You may be able to apply for a zoning variance to permit this rental, but you'll need to begin this process well in advance of your goal rental date, as it's likely you'll need to present your case before the zoning board and then wait for the issuance of a formal order.
After you've ensured that the planned agricultural rental of your property is legal, you'll want to check with your homeowner's insurance agent to determine whether you'll need additional coverage to help protect yourself against potential liability. Although the person leasing your property will likely carry his or her own crop insurance, which can protect against a harvest loss following a drought or other natural event, you'll probably need to boost your coverage limits so that you won't be financially responsible for any accidents or injuries the farming crew sustains on the job.
While rental farmland in nearly any condition can command a premium price in certain parts of the country, you'll be able to fetch a higher price for your property if it's already prepared for planting. This can mean removing large rocks or boulders, cutting down trees, and mowing paths that will allow the farmer to gain access to the rental property without tearing up your lawn or driveway. The more quickly the farmer can begin planting, the better his or her crop will fare, and the more money he or she can earn, allowing you to raise your rental rates without diminishing the likelihood you'll be able to rent your property quickly. A company like DyTech can help you with this type of preparation.