What is Landed Property?

Landed property is an unusual term for the layman but a common enough term in the real estate industry. It is a kind of real estate that earns income without the owner having to do any actual work within the land. Have you ever watched an episode of Downton Abbey?  If you are familiar with this popular British TV series, the real estate the Grantham family owns and runs in the story is in fact, a landed property.

What constitutes a landed estate? Like in Downton Abbey, a landed property consists of a manor and more than one tenant farm (depends on how large the land is) and other enterprises such as shops, mills, inns and/or animal farms. Aside from these enterprises which generate income not only for the landlord but also for the tenants, landed property also comprise of houses and other buildings which are leased out by the landlord. Landlords earn a steady income through the monthly rents and fees accrued by its tenants.

Landed estates were once highly popular in Europe. It was an integral part of feudalism which made the lives of landlords (and those in aristocracy) very easy. It freed them from having a regular job like others and were assigned, instead, to other tasks related to the government, military, law or even religion. Landed Estates used to be the holdings of great and wealthy English families which were inherited and passed on from one generation to the next.

There was permanent and absolute tenure of land at the time and landlords could even dispose of it if they want to. Tenants enjoyed the benefits of renting small or large parcel/s of land from landed properties at fair or low costs as deemed by the landlord. They could even sublet to others. Rent and other fees are a given in landed estates but there were stipulations made in its early days. The stipulations were sometimes about having to cultivate certain crops in the leased land or making minor improvements like planting trees in the area. The economy in the rural areas of Europe used to thrive in the system of landed estates.

The landlord-tenant relationship was fundamental in the system formed from landed property. Not only did landlords earn from tenants but also gave back to them. During bad times, they practiced other duties becoming of a good landlord. They provided employment by hiring staff (maids, butlers, kitchen staff, etc.) for the "Big house" or their residence. They also helped out in strategizing effective and efficient farming practices for their tenants. Tenants were highly regarded by landlords and were not only viewed as a source of income.

Modern landed properties have gone a long way since the 18th century but it still remains as a good way to earn money with the land you may own.