Do you know you can make more money or added income through leasing? You can lease your catfish farm and earn monthly income from the farm.
Leasing property is not new but leasing a fish farm is relatively rare. Building commercial fish farmers are capital intensive because of the infrastructure you put in place.
When you have an idle farm with lots of infrastructure like borehole, pumps, and ponds you can lease it for good money.
Ways to lease your catfish farm
Lease the whole farm
It is not uncommon to see advertisements seeking tenants for existing fish farms. If the entire farm is idle then the owner of the farm can go into a lease agreement with a prospective occupant.
The lease agreement should stipulate the duration of the lease, amount paid and other conditions. Like repair of damaged property such as ponds, pumps or structures on the farm.
The duration the person needs to use your farm and if payment is monthly or yearly. When leasing your property use a qualified lawyer to draw up the agreement.
Check on the lessee occasionally to make sure no addition structures are included in the farm. Only lease the entire farm if you don’t intend using it for the period under contract.
Partial leasing is when you use part of your fish farm and want to lease other parts. It is advisable to lease only areas where you already have ponds.
Leasing fallow land can be problematic because the person letting your land would invest in structures. When they invest in structure it becomes difficult to evict.
It is better to sell that portion of fallow land to someone than leasing it out without structures. Partial leasing works because you are there to monitor the activities of the tenant.
Lease out ponds
You can lease out empty ponds if you have many unused ones. The person leasing the pond benefits because he uses your structures and can gain experience from you.
To lease a few ponds to a stranger has its dangers and drawbacks especially to the fish. If there is disagreement between the two parties the person might sabotage your ponds.
Before agreeing to a lease deal study your potential tenant’s character.
Build additional ponds
If you need added income you can build additional ponds and offer them for lease. Leasing additional ponds can guarantee monthly or yearly income.
The income you get from this business format can help you with other costs. You can offer supervisory and maintenance services for your tenant.
If they have the money without the time and expertise you earn more money.
Sell the entire farm
If you decide to cash out as a fish farmer then sell you farm. The farm is more valuable than fallow land because of the structure in place.
The structures add value to the land and someone interested in starting the business might rather buy a functional fish farm.