Imagine owning undeveloped land without a home, without hefty mortgages, and without the hassle of traditional housekeeping, yet still raking in an annual income of $100,000. It may sound unbelievable, but this is a genuine possibility for certain landowners thanks to a remarkable platform known as HipCamp. While hitting the $100,000 mark is an exceptional outcome, the typical host on this platform earns a solid income ranging from $8,000 to $15,000 annually. The best part? You don't even need to provide amenities; all you need is your own parcel of land.
If you're unfamiliar with HipCamp.com and happen to own land, it's high time you explored this opportunity. They are often referred to as the Airbnb of the camping world, connecting adventure-seeking travelers with landowners willing to offer their property as a camping destination. So let's make you some money on your raw land.
Maximizing Profit from Your Land: A Step-by-Step Guide
According to KOA, a staggering 92 million American households are identified as campers, and of these, 58 million households enjoyed at least one camping experience last year. However, the glaring issue lies in the scarcity of available campsites to accommodate such a massive number of outdoor enthusiasts. Some of the most sought-after campgrounds in the United States are fully booked years in advance, especially during peak seasons. The unfair reality is that spontaneous trips often meet disappointment when aspiring campers discover that their desired camping destinations are fully booked.
Clearly, there is an exceedingly high demand for campgrounds, driven by the multitude of people seeking affordable vacation options. Meanwhile, if you happen to own undeveloped land, chances are it's not generating any passive income for you. While land can indeed be a valuable long-term investment, why not transform it into a lucrative income source right now? Let's embark on the journey of turning your land into a profitable rental venture!
Step 1. Claim Your Campsite, Securing the Perfect Plot of Land
The first and foremost requirement is land ownership. If you don't currently own any land but are interested in purchasing some, you can explore our website, LandZero, where you'll find a selection of parcels, with most priced under $10,000. Alternatively, there are various other avenues to acquire land, such as researching areas popular among campers – this can be your optimal choice for generating higher income. Keep in mind that land in highly desirable locations may come with a higher price tag, much like a rental property's location significantly affects its rental potential. For instance, a property near the beach in San Diego will likely attract more Airbnb bookings than one in rural Nevada.
Here's what you should consider when purchasing land and what to be aware of, even if you already own land
Location is Key: Opt for land situated in areas that draw campers, such as places with events, scenic beaches, breathtaking landscapes, and those along well-traveled routes.
Familiarize Yourself with Local Laws: Avoid potential setbacks by researching and understanding the local regulations governing camping on your chosen land. Counties establish these rules, including zoning usage, permitting requirements, and more. It's advisable to contact the county authorities to inquire about the feasibility of camping on your land. If you own a home with ample acreage, you may not require additional approvals, as it can be considered similar to having guests over.
Step 2. Evaluating Costs and Returns
If your aim is to generate secondary income as a camp host, it's crucial to crunch the numbers before diving in headfirst. Unlike homes, land purchases often require full cash payments, making it imperative to evaluate both the long-term investment potential and your estimated annual income as a camp host.
Determining Your Potential Earnings: HipCamp offers a useful earning calculator, accessible through the HipCamp Earning Calculator link. This calculator factors in your land's attributes, amenities, and location. However, before using it, I recommend reading Step 3, as some hosts go the extra mile by offering more to entice travelers, thereby increasing their nightly rates. Often, this extra investment pays off handsomely, as these hosts create truly magical campsite experiences, complete with glamping-style accommodations like cozy beds, power outlets, and water access in spacious tents. Your location and the extent of these luxurious offerings can greatly influence your potential earnings.
Land Acquisition Costs: Keep in mind that land purchases typically require full cash payments, as banks seldom provide mortgage options for land. Therefore, calculate your budget in cash and ensure that county laws align with your plans before proceeding. If you lack the cash needed for a potentially suitable property, consider exploring owner-financed land options. This arrangement involves a land sale agreement, with some agreements permitting you to build or use the land while making monthly payments toward ownership. However, in most cases, you won't receive the deed until the land is paid off.
Considering both land costs and income potential will give you a general idea. Nevertheless, it's essential to recognize that not all lands are equal, and not all hosts are equal either. By visiting the HipCamp website, you can observe that your efforts directly correlate with your outcomes. Some campsite listings are truly captivating, while others merely provide directions to a plot of land. To take this venture seriously, you'll need to learn how to maximize your income from your land.
Step 3. Maximizing Your Bottom Line
Basic Camping: If you own land and prefer a low-effort approach, you can simply list it for camping. Many campers appreciate the rustic appeal of a simple plot of land to set up camp during their travels. However, it's essential to have some level ground for tent pitching, as sloped land won't provide a comfortable sleeping surface. If your land accommodates RVs, consider grading a road and a designated parking spot. Additionally, be highly responsive to your guests via the HipCamp app, as failing to assist lost campers may result in negative reviews and a decrease in bookings.
Mid-Range Camping: If you have the means to add amenities and accommodations, you can significantly increase your earnings and attract more bookings. Enhance the charm of your land with lighting, a restroom facility, water access, secure gates, and locks for added safety. This approach still allows for a fairly hands-off experience, although you may need to spend a few weekends setting up these enhancements. Consider the following steps:
1. Level a designated area and surround it with rocks to mark the campsite clearly.
2. Use nearby trees to create shaded areas for tents, adding a picnic table and benches for comfortable dining.
3. Ensure there's a well-defined and easily accessible road leading to the campsite, possibly with signage for clear directions.
4. Install proper lighting, such as white Christmas lights or solar-powered ground lamps, for nighttime visibility.
5. Provide an outhouse and shower facilities if feasible.
6. Create a cozy fire pit and offer guests a storage area with firewood.
High-End Camping: This option is often chosen by hosts who reside on the property, enabling them to establish a comprehensive camping experience surpassing the amenities of some houses. It's worth noting that these are the hosts who can potentially earn the $100,000 annually we mentioned earlier. High-end camping may involve a luxurious tent or even a secondary shelter with features like lighting, a refrigerator, premium bedding, breakfast service, and much more. It's best to explore these setups firsthand and draw inspiration from other successful hosts. Some hosts in this category are consistently fully booked and can charge upwards of $70+ per night. It's not far off from an AirBnb to be honest but still has the appeal to campers as it's just not a regular home or apartment.
The era when undeveloped land was merely seen as a dormant asset is now a thing of the past. Those who have invested in land have reaped impressive profits without the need for any active involvement beyond property tax payments have done great. However, a fresh opportunity has emerged for raw land, and as more individuals recognize its potential for generating passive income, it is reshaping the landscape for traditional home investors. Once people understand that they can earn money without the headaches associated with rental properties, this approach is destined to become increasingly popular.
