Here's How Many Are Earning $1,000 Monthly Rental Income With No Landlord Duties

Real estate has traditionally been a reliable avenue for wealth growth, but the hands-on nature of traditional landlording can be both time-consuming and stressful.

Investors can avoid the work that goes into tenant screening, maintenance and rent collection with a more passive approach to investing: real estate investment trusts (REITs).

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REITs own income-generating real estate and distribute at least 90% of their taxable income to shareholders as dividends.

REIT investors can earn monthly rental income without the direct responsibilities of property ownership.

Realty Income Corp. O, known as The Monthly Dividend Company, is a great example of a REIT that pays its shareholders monthly.

Since its founding in 1969, the company has declared 652 consecutive monthly dividends and is a member of the S&P 500 Dividend Aristocrats for increasing its dividend for the past 30 consecutive years.

Since it was listed on the New York Stock Exchange in 1994, the REIT’s compound annual dividend growth rate has been 4.3%.

The company offers a 5.37% dividend yield with a monthly dividend of 26 cents per share. 

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To earn $1,000 per month from Realty Income, an investor would need to own about 3,175 shares, which at the current share price of around $59.29 would require an investment of approximately $188,192.

For a more modest goal of $200 per month, an investor would need roughly 635 shares or about $37,613 worth of Realty Income stock.

While REITs like Realty Income offer a convenient way to invest in real estate without the burdens of property management, they are not without risk. REIT share prices can fluctuate and dividend payouts are not guaranteed.

Realty Income's stock price has ranged from a low of $49.52 to a high of $64.88 over the past year.

For those seeking a more hands-on approach to real estate investing without the full commitment of traditional property ownership. Arrived Homes offers an intriguing solution. The platform, backed by Amazon.com Inc. founder Jeff Bezos, enables investors to purchase fractional shares of specific rental properties starting from as little as $100.

Better Yields Than Some REITs?

The current interest rate environment has created an incredible opportunity for income-seeking investors to earn massive yields, but not through publicly-traded REITs.

Arrived Homes, the Jeff Bezos-backed investment platform, has launched its Private Credit Fund, which provides access to a pool of short-term loans backed by residential real estate with a target 7% to 9% net annual yield paid to investors monthly. It paid 8.1% in August. The best part? Due to high demand the maximum investment amount is currently $5,000 with a minimum investment of ONLY $100.

Looking for fractional real estate investment opportunities? The Benzinga Real Estate Screener features the latest offerings.

Wondering if your investments can get you to a $5,000,000 nest egg? Speak to a financial advisor today. SmartAsset’s free tool matches you up with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you.