DIVERSIFY LAND POTENTIAL WITH AN OUTDOOR LEASE

By Craig Bowen, Account Manager - Hill Country North

For the average landowner, there are few aspects of land more attractive than the potential to produce revenue. Often, all that is lacking from such a landowner's revenue-generating plan is the willingness to diversify, or the lack of knowledge about the great number of options their land gives them.

For the Texas landowner, there are a number of opportunities to diversify and generate revenue by selling leases on their property. These leases vary in type, duration, and focus, and can fit a variety of landowner goals and property characteristics. The three main types of outdoor leases are hunting, fishing, and outdoor recreation. The market for the latter is growing quickly, and there are many emphases within this type.

Hunting leases are typically sold for white-tailed deer, mule deer, dove, turkey, quail, feral hogs, and exotic deer and antelope. Fishing leases are usually specific to properties boasting large, private lakes (5+ acre is a good rule of thumb) which are managed for trophy bass, crappie, or catfish.

Nature tourism includes bird watching, hiking, horseback riding, guided nature tours, star gazing, geological recreation, and geotourism. Geological recreation involves rock and topographic formation viewing and rock hunting; geotourism is basically an introduction to active rural life on a working farm or ranch.

The type of lease is defined by the duration. Day, packages, season, and annual leases are all common and all fill important niches in outdoor leases. The type of lease may be dependent on the lease focus, the lessee's desires, the landowner's desires, or the type of property being leased. Each of these leases has pros and cons, and most revolve around the amount of revenue and profit potential they have versus the amount of landowner involvement and sacrifice. For instance, day leases have a high revenue potential because of the high sale volume possible, but the landowner sacrifices privacy and liability risk by having different clients on site each day.

As in any good business plan, market research is one of the most important preliminary steps to success. In outdoor recreation, the simple words "Who, What, When, Where, Why, and How" can be used to conduct the proper market research. Examples of appropriate questions to answer about your business plan: WHO is the target audience; WHAT are the marketable traits of your land; WHEN is your product available; WHERE can your target audience be reached; WHY is there value in your lease; and HOW can existing industry marketing strategies be improved? There are many, many more considerations for a successful marketing plan, but these will get the process started efficiently.

Perhaps the most important, and often the most overlooked, tool for a successful lease is a well-written lease agreement. The agreement should be drafted by a competent attorney familiar with the outdoor lease industry. The agreement will vary among lease foci, but should outline items such as property access periods, with start and end dates and camp set-up periods; allowed activities, such as wildlife hunting availability, type of hunting, and souvenir regulations; equipment allowed, including weapons, cameras, trailers, and vehicles; guest restriction, including how many, how often, and what age; vehicle rules, covering where they can go on a lease, and what type is allowed; camp safety restrictions, such as camp location, and alcohol and smoking restrictions; transferability of lease; landowner rights during lease period; required record keeping, such as harvest logs and photographs; and dispute resolution process.

Today's landowner has many options to produce revenue on their property in formerly "unconventional" ways, and the ability to offer these affordable, family-friendly leases is also a great way to involve the community in rural life.

This article paraphrases a more in-depth essay by Mr. Robert Fears, "Diversify with an Outdoor Recreation Business," which appeared in the Texas Southwestern Cattle Raisers Association (TSCRA) magazine The Cattleman in August, 2011. Fears' article was mostly a written version of Craig Bowen's presentation to TSCRA at their 2010 convention in Fort Worth, Texas. Download The Cattleman article here (PDF).

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Plateau Land & Wildlife Management helps Texas landowners protect and enhance their greatest asset -- their land -- with wildlife management plans, wildlife tax valuation assistance, qualifying wildlife management valuation activities, and more.