Renting a lot for a Firewood Business

I have a "sort of" relative who is using my land to store wood for his firewood business. This has been going on for at least 10 years. I wanted to help him get on his feet, and he is doing very well. He can now afford to compensate me for the use of my land, but I don't know what is considered a fair rate. I am in northern New Jersey, and he is using about a quarter of an acre. This also creates some work for me as his vehicles gouge huge ruts in my unpaved path to this area when it is wet. Thank you for your advice.


Answer

This is a tough question to answer because rent is really variable depending on location and property values, etc.

I can tell you that where I live in Maine, for someone to rent land for a firewood business they would be charged in the range of $100-$300 a month per acre of land.

My advice is that you should decide how much you really want. Because he is "sort of" a family member, do you want to give him a good deal? If so, I think that you should have him cover the taxes on the land that he is using in addition to paying for any maintenance that is needed on the path. If you are looking to make more money, make some calls in your area to find out what current prices are for renting/leasing land and charge him based upon the typical rates for the area.

I hope this helps!

-Firewood Matt

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