The Best Real Estate Investments for Passive Income

Instead of exchanging your time for money, why not spend your effort setting up a passive income system and then watch the profit come in? With passive income, you’re not limited by the number of hours you can devote to work. Passive income lets your money work for you and frees up your time to spend elsewhere.

Real estate investing is a great option if you’re interested in passive income. Within this sector, there are multiple ways to make income from properties and trusts.

The Best Real Estate Investments for Passive Income

You can make several types of investments in the real estate sector to develop a passive income:

  • Self-storage facilities: Self-storage facilities are one of the most affordable options for getting into real estate, in part because the location doesn’t have to be ideal. Both businesses and individuals rely on self-storage, so you always have people interested in renting units. A high turnover and less need for regulation allow you to raise prices with inflation so you can keep making an excellent return on your investment.
  • Residential rental properties: Purchasing an apartment building or converting a residential home into a few rental units can also create a steady passive income. That said, some management is key to ensuring you retain quality tenants.
  • Real estate investment trusts (REITs): REITs are companies that own, manage and invest in real estate. For example, self-storage REITs invest in storage facilities. You can invest in REITs by buying shares of a trust’s holdings. You’ll make a regular passive income each time the company pays out a dividend.
  • Commercial properties:  Another option is buying and leasing commercial property, such as offices or retail space. Commercial tenants can earn investors more than residential tenants. That said, it’s important to keep in mind that recessions can affect this sector.
  • Vacation rentals: Short-term and vacation rentals allow you to rent a second property or part of your home to temporary residents. You do need a property to rent, and you must follow bylaws and local laws for vacation rentals.

man walking through indoor storage facility

Are You Ready to Earn Passive Income?

If you’re interested in self-storage investment, you can turn to Investment Real Estate (IRE) for services and resources. We can help you get started with management services, listings for buying and selling facilities and more. Reach out to IRE today to learn more.

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