Metaverse real estate is hot right now, and there's tons of information out there urging people to buy it, but what do you do once you own it? Investing in the metaverse may very well be a smart move for all kinds of real estate investors, but unless you're prepared to take the next step -- putting that real estate to some kind of use -- you may be waiting a long time for your investment to pay off.
Rather than buy and hold your virtual real estate and wait for a buyer, choosing to rent it can start bringing in income now. There are plenty of businesses out there already looking for a way to get a foot in the door in their favorite metaverse platform but may not be ready to fully invest in property.
That's where you come in as an owner and soon-to-be metaverse landlord. Of course, you can still simply hold on to your land and wait for appreciation to catch up to you (or hope that the next Snoop Dogg moves in next door!), but leaving your land fallow holds it back from reaching its full potential as an investment.
Decide what you want to rent
If you planned your metaverse land purchase carefully, you already know what you plan to rent out, whether that's empty land, a structure, or space on a billboard. If you got a little ahead of yourself, you might not have gotten quite that far before you jumped on a piece of land that you believed to be an absolute bargain and that you were willing to take a chance on.
Now is your time to shine. Decide how much you're willing to put into your land before renting it. For many, renting raw land is ideal, but if you have a piece of land in a prime location, offering a structure along with the land for rent may make more sense. In the case of billboards, of course, you'll generally be the one to do all the construction and maintenance.
Find a renter
Finding a renter for your land can be harder than it seems it should be if you're going it alone. You may want to consider connecting with a metaverse real estate agent who can help you properly value your property and find renters who will be interested in your virtual real estate.
In addition, depending on the platform you're using, there may be sites to list rentals, such as Double, one for Decentraland properties. These sites can also be used in conjunction with more traditional ways of finding renters since they provide added conveniences, like the ability to complete the transaction within the platform.
And don't underestimate the value of a sign on your land. A simple "For Rent" sign can be used to take a potential renter from your property in the metaverse to a website where they can complete the rental process or application.
Execute a rental contract
Metaverse rentals are often rented for a number of days or weeks rather than year by year. It's important to keep this in mind when setting up a rental contract for your virtual real estate since competing contracts will feature daily or weekly rental rates.
Because rental platforms for virtual real estate are still in their infancy, you may want to build your contract on a traditional lease form. Still, if you're feeling like leading the pack in this realm, smart contracts on the Ethereum network are also popular choices.
A smart contract will allow you to specify the length of time for the contract, the amount of rent due, and the due date. When the contract executes, it automatically runs and collects the rent without your intervention. Some can also be configured to evict a tenant who fails to pay their rent on time, which can simplify metaverse landlording.
You bought metaverse real estate -- it's time to put it to work!
Absentee owners of metaverse real estate miss out on opportunities to make money with their property as they wait for their land to appreciate. Instead of leaving that money on the table, find yourself a metaverse renter. Whether it's a well-known business or intrepid entrepreneur looking for a place to hang their shingle or simply someone who wants to advertise on a billboard, it only makes sense to put your property to work while you have it.