1 Super Easy Way to Make Passive Income from Real Estate (Without Being a Landlord)
By: Velorine
Real estate is one of the most powerful ways to build long-term wealth but owning rental property isn’t always as “passive” as it sounds. Between finding tenants, fixing leaky sinks, and managing the mortgage, becoming a landlord often means earning your income the hard way.
But here’s the good news: there’s a super easy way to make passive income from real estate without ever owning property or lifting a finger. It’s called a Real Estate Investment Trust, or REIT, and it could be your ticket to steady, stress-free income.
What Is a REIT?
A REIT is a company that owns or finances income-generating real estate across a range of property sectors. By law, REITs must pay out at least 90% of their taxable income to shareholders which means consistent and often generous dividends for investors.
And the best part? You can invest in REITs through your regular brokerage account, just like any stock.
Here are three top REITs ideal for beginners looking for simplicity, growth, and income:
1. Invitation Homes (NYSE: INVH)
Dividend Yield: ~3.3%
If you want the income of a landlord without the headaches, Invitation Homes is the answer. This REIT owns nearly 93,000 single-family homes in 16 high-demand U.S. markets and manages thousands more.
- Exposure to residential real estate
- Strong dividend history
- Steady growth through home acquisitions
Invitation Homes is growing fast by buying more homes from builders and investors. That expansion helps increase rental income and with it, your dividend payouts.
2. Realty Income (NYSE: O)
Dividend Yield: ~5.6% and it pays monthly
Nicknamed “The Monthly Dividend Company,” Realty Income is one of the most reliable REITs on the market.
- Pays monthly instead of quarterly
- 30 years of dividend increases
- Tenants include big names like Walmart, FedEx, and Walgreens
Realty Income owns a vast portfolio of retail, industrial, and even gaming properties. Thanks to net lease agreements, tenants cover most operating costs, which means stable, predictable income for investors.
3. Extra Space Storage (NYSE: EXR)
Dividend Yield: ~4.3%
Think storage units aren’t exciting? Think again. Self-storage is one of the most recession-resistant and profitable real estate sectors.
- 190% dividend growth over the past decade
- Recently became the largest storage operator in the U.S.
- Extra income from third-party management and lending
With rising demand for personal and business storage, Extra Space is set to keep growing and so are its payouts.
The Easiest Way to Make Real Estate Income
REITs give you the benefits of real estate ownership rental income, property appreciation, diversification without the work, the worry, or the six-figure down payment.
Just buy shares, sit back, and watch the dividends roll in.
Whether you’re saving for retirement, looking to diversify your portfolio, or just want an easy way to make money while you sleep, REITs are a low-maintenance, high-potential solution.
Pro tip: Reinvest those dividends to compound your returns even faster. Over time, a few hundred dollars invested monthly in REITs can snowball into a powerful income-generating portfolio.
