How Can I Invest In Real Estate Without Being A Landlord

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Lots of people want to invest in real estate, own a rental property, and earn passive income. However, not a lot of people want to constantly maintain their property, chase tenants around for rent payments, or get called in the middle of the night to deal with a crisis. Is there a way that you can invest in real estate without becoming a landlord? Let’s take a look!

Use a property manager

It’s important to remember that you can always just hire a property manager to act as a landlord for you. You will still be the owner of the property, but the property manager will be in charge of managing the property for you (as the name “property manager” implies). This way, you’ll be free from all of the stress that can come with being a landlord.

However, keep in mind that hiring a property manager could take a significant cut out of your monthly profits from the property. It’s a tradeoff between earning more income and having peace of mind. Hiring a property manager is probably only worth the expense if you have multiple properties to look after.

Buy shares of a REIT

A Real Estate Investment Trust (REIT) is defined as a company that owns, and in most cases operates, income-producing real estate. If you’ve ever bought a share of stock in a company then you’ll be familiar with the process of investing in a REIT.

When you buy a share of stock in a company, you become a shareholder and will share in the financial success of a company through capital appreciation (the stock price going up) and as well a portion of the income they earn (through dividends). Buying a share of stock in a REIT works the same way except, instead of a business, the REIT just owns real estate that produces income.

REITs are required to pay out 90% of the income that they earn each month to their shareholders, which means that you can expect a monthly check (which will vary depending on how many shares you own).

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Use a third-party app

There are also plenty of third party apps you can use that will help you invest in real estate in a way that’s similar to a REIT. For example, Fundrise and Concreit are two examples of places that you can invest in real estate without being a landlord. The companies behind these two apps have essentially bought a portfolio of real estate and allow you to invest money to share in the returns of their properties.

In particular, Fundrise has 150,000 investors, $5.1 billion in total asset transaction value, and $100 million in net dividends earned by investors.

We hope that you’ve found this article valuable when it comes to learning how you can invest in real estate without being a landlord. If you are interested in learning more, please subscribe below to get alerted of new articles as we write them!


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