The development of a monitoring system for the socio-economic indicators of private forest owners includes the comprehensive collection of various socio-economic data. These data encompass general information about private forests owners, the need for monitoring, periodicity, and other relevant factors. This holistic approach allows for a detailed assessment of the social and economic conditions of private forest owners, as well as the economic efficiency of their operations, ultimately aiming to achieve sustainable forest management. This research builds upon previous studies by the authors that investigated the need for monitoring of the socio-economic indicators of private forests and involved interviews with forest experts. Based on the data obtained from these earlier efforts, this study aims to present a refined methodology for monitoring of the socio-economic indicators of Lithuanian private forest owners. Based on the findings of this research, it is highly recommended that monitoring be implemented at the state level across the entire territory of the Republic of Lithuania. The results of this research show that the monitoring of the economic and social indicators of private forest owners benefits not only the owners but also the state and society as a whole. Residence size, property size, and association membership emerged as the most significant factors influencing the need for forest monitoring, while knowledge in forestry, distance to the forest, and gender showed weaker but still notable effects. The research results suggest that monitoring can help to ensure the sustainable management of forests and the maintenance of ecosystem services, in addition to contributing to the region’s economic development. It is recommended that this monitoring be conducted every five years.