Have you ever felt like no matter how hard you work, you’re still not earning enough to live more comfortably? Many people who’ve settled down financially managed to get there by creating passive revenue streams. This strategy will ensure you of constant income without having to stretch your time and effort beyond the limit. Here are some ways to earn passive income from real estate opportunities:
Rent out your property
If you’re in a position to rent your existing property, then earning a substantial income from this passive revenue stream can be as simple as finding a reliable tenant. Even if you’re currently paying off a mortgage on the property, the money from monthly rental payments should be more than enough to cover your mortgage payments and still have some left aside.
Of course, becoming a landlord also entails significant responsibilities. You’ll have to oversee repairs and maintenance and ensure proper health and safety with measures such as Legionella risk assessments. But the demand for somewhere to live is constant, whether your property is in Kent or the capital. Generally, if you can find a good tenant, you’re set.
Rent a room or parking space
If you live in the big city and can’t rent out an entire house, or perhaps you’re still living in it, then another option is to rent out a room. This makes you a resident landlord. You still have to follow the duties of landlords according to legislation, but you’ll have greater freedom in terms of the agreement you draw up with the person you let to. To an extent, your income from letting a room will also be tax-free.
Depending on your location, renting out your parking space can also be a sufficient income stream. Thus far, the Ministry of Housing allows you to rent out one parking space as long as you don’t cause a nuisance to your neighbors. In the busy city-center areas, this could earn you up to £200 a month or more!
Invest in REITs
Real estate investment trusts (REITs) have been around for over a decade now. They are closed-ended property companies that trade on public markets. This structure is an excellent opportunity for you to start investing in real estate without having to dive into the hands-on aspects of owning property.
As you might expect, there is a trade-off; in return for the lower level of effort required, REITs tend to be a long-term strategy. You wouldn’t expect to earn as much every month compared to the rental payments from tenants, but with sound advice, you can find some excellent long-term investments.
Crowdfunded real estate
One of the more recent entry-level options available to prospective real estate investors is crowdfunding. This method allows many people to contribute and invest money, often at the minimum investment level, through an online property crowdfunding platform.
Crowdfunded property is a new industry, so it won’t be easy to find a good source of established investment strategy. However, it’s well-regulated by the FCA; you can invest a smaller amount to lower your risk exposure while learning the ropes and finding excellent opportunities.
Everybody would like to earn more income, and passive revenue lets you get there without overtaxing your time and energy. Explore these opportunities in real estate and establish for yourself a reliable source of passive income.