Even the tiniest backyard has room for a putting green, even if it's no more than 36-inches wide. You don't have to own acres of land, although that helps if you'd like to install a full-size par 3. Use your backyard to practice hitting out of trouble and sharpening your pitching, chipping and putting.
Create a golf hole with a small fairway surrounded by several hazards. The objective here is not to stay out of the hazard but to learn how to get yourself out of trouble with practice. A deep sand bunker with high perpendicular sides on one end and low sloping sides on the other gives you a chance to practice a variety of shots with your sand wedge. Let the grass grow 6 inches high to simulate deep rough. Add a few bushes so you can practice how to get your ball out of there as well. Put in a small water feature and practice pitching over it.
Pitching and Putting Practice
Set up three greens in your backyard. The first slopes from back to front, the second from front to back and the third is elevated. Hit to the greens from two "fairway" areas on either side of the greens, alternating your shots. Vary flag placement on the greens. Start by hitting to the first green. Sink that putt. Go back to the first fairway and hit to the second green. After you've finished hitting to all three greens from the first fairway, repeat the exercise from the second fairway on the other side of the greens. This is a good way to practice both your short iron shots and putting.
Par 3, Three Ways
If you have room for a standard par 3 hole that's between 100 to 125 yards long--although a par 3 can be as long as 200 yards--create three different holes with three different yardages that use the same green.
Connect the Dots
Create a course with three or more holes. Construct approaches that go up and back in several directions to reach the green, rather than in the same direction. You can create a par 5 that requires three accurate short-iron shots to get to the green. On a standard golf course you're always headed in the direction of the green even if you can't see it. Even a dog leg keeps you going toward the green.
On this course you may hit the first shot with your back to the green, then turn around and hit toward the left of the green before you take the approach shot to the green. The same fairway space is used by more than one hole. Block out the areas where each shot should land with a different lengths of grass or spray paint.