How To Earn $500 Per Month In Rental Income Without Becoming A Landlord

Real estate has been a reliable source of wealth creation for centuries, and as the famous saying goes, “Landlords grow rich in their sleep.” However, being a landlord is not always as passive as it may seem. From screening tenants and drafting lease agreements to dealing with maintenance issues and collecting rent, managing a rental property can be a demanding and stressful task.

Luckily, there are ways to generate monthly rental income without the headaches of being a landlord. One popular strategy is investing in real estate investment trusts (REITs), which are essentially large-scale landlords that own income-generating real estate and collect rent from tenants. By law, REITs must distribute at least 90% of their taxable income to shareholders in the form of dividends, making them an appealing option for investors seeking passive income.

Earning $500 Per Month From Realty Income

One notable REIT that pays its shareholders monthly is Realty Income Corp. O, also known as “The Monthly Dividend Company.” With a 55-year operating history, Realty Income has declared 646 consecutive monthly dividends and has increased its payout for 25 years in a row. Currently, the company offers a 5.59% dividend yield, with a monthly dividend of $0.257 per share.

To earn $500 per month from Realty Income, an investor would need to own approximately 1,946 shares, which at the current share price of $55.22, would require an investment of around $107,458. For a more attainable goal of $100 per month, an investor would need roughly 389 shares, or $21,481 worth of Realty Income stock.

While REITs like Realty Income offer a convenient way to invest in real estate without the duties of property management, they come with their own set of risks. REIT shares can experience fluctuations and dividends are not guaranteed. Despite its impressive track record, Realty Income shares have declined about 11.5% in the past year, although some analysts anticipate a potential recovery in the near future.

A More Direct Investment Option

For investors seeking a more hands-on approach to real estate investing without the full responsibilities of being a landlord, Arrived presents another option. Backed by Amazon founder Jeff Bezos, this platform allows individuals to invest in shares of specific rental properties for as little as $100.

Arrived provides investors with more control than traditional REITs by allowing them to select the specific properties they want to invest in. Investors can explore available properties on the platform, review information about each property’s location, tenant and projected returns, and then choose which properties align with their investment objectives.

Arrived takes care of all the property management tasks, including finding tenants, collecting rent and handling maintenance, while investors sit back and receive their portion of the rental income and any appreciation in the property’s value. With a monthly payout and potential for price appreciation, Arrived presents an attractive alternative for investors looking to diversify their real estate holdings and have more control over their investments.

While becoming a landlord can be a profitable way to generate passive income, it’s not the only option. REITs like Realty Income and platforms like Arrived provide investors with the opportunity to earn monthly rental income without the hassles of property management. As with any investment, it’s crucial to conduct thorough research and understand the risks involved before investing your hard-earned money.

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