Dream Office REIT: Collect Up to $1,500 in Monthly Rental Income Starting October 15

Earn a 7.7% ‘rent cheque’ without becoming a landlord.

The Motley Fool

If you’re interested in buying rental properties but don’t want to spend your golden years fixing clogged toilets and chasing down rent cheques, then this might be the most important message you ever read.

That’s because in this article I’m going to show you a way to collect up to $1,500 in monthly rental income without becoming a landlord if you act by September 26.

Earn a 7.7% ‘rent cheque’ without becoming a landlord

Owning real estate is a great business. You buy an investment property and every month these wonderful people called tenants pay off your mortgage.

In two short decades you stop making mortgage payments, but your tenants continue to pay you rent. Your tenants’ children pay your children rent. Your tenants’ grandchildren pay your grandchildren rent. Your investment becomes a money machine that can last generations.

But aside from cashing those fat monthly rent cheques, becoming a landlord is no walk in the park. There are the hassles of fixing leaky faucets, collecting security deposits, and chasing down late payments. While we could all use the extra cash, buying investment real estate is not for everybody.

That’s why you might be interested to learn about an easy way to collect monthly rental income, without stepping foot on a single property. Simply put, I’m talking about becoming a partner with a successful, already established landlord: Dream Office REIT (TSX: D.UN).

Dream owns some of the most valuable real estate in Canada. The trust’s business empire includes 185 properties that stretches from coast to coast. All together, the fund’s portfolio totals nearly 28 million square feet of real estate, of which 94% is currently occupied.

And Dream isn’t your typical landlord. As the name would suggest, this fund specializes in office real estate. It rents out its properties to reliable tenants like the Government of Canada, BCE Inc., and Enbridge Inc.

Needless to say, this type of renter is rock-solid from a financial perspective and aren’t going out of business any time soon.

And because of the special way in how this trust is structured, Dream pays no corporate income taxes on its earnings. But in exchange for this privilege, the firm is required by law to pass on all of its profits to partners.

This is why the trust has managed to pay such consistent, oversized rent cheques. Since 2003, long-time partners have collected 133 consecutive monthly distributions. And I’d expect this firm to maintain that payout for many more years to come.

Best of all, as a partner with this landlord the day-to-day hassles of property management are none of your concern. There are no toilets to unclog or gutters to clean. You just sit back and wait for the cash to arrive in your brokerage account.

Collect your first payment by October 15

You can start collecting ‘rent cheques’ from Dream as early as next month. Today, the trust sports a monthly payout of 18.67 cents per unit, which comes out to an annualized yield of 7.7%. And if you become a partner by September 26, you’ll be eligible to collect your first distribution cheque on October 15.

Fool contributor Robert Baillieul has no position in any stocks mentioned.

More on Dividend Stocks

A meter measures energy use.
Dividend Stocks

Canadian Utility Stocks Report Soon: Should You Buy Before or After Earnings?

Canadian utility stocks report soon. See what Fortis, Emera and Canadian Utilities investors should consider before buying ahead of earnings.

Read more »

Person uses a tablet in a blurred warehouse as background
Dividend Stocks

An Ideal TFSA Stock for October, Paying 0.34% Each Month

Explore the advantages of a TFSA and discover how selecting the ideal TFSA stock can maximize your investment returns.

Read more »

shoppers in an indoor mall
Dividend Stocks

A Top-Notch 5.5% Dividend Stock Paying Cash Every Month in Retirement

Crombie REIT offers a dependable yield and a low payout ratio. Discover why it’s a top choice for monthly retirement…

Read more »

A glass jar resting on its side with Canadian banknotes and change inside.
Dividend Stocks

Dividend Income on a Small Budget: Where Canadians Can Start

Stocks like Fortis Inc (TSX:FTS) can produce substantial dividend income.

Read more »

monthly calendar with clock
Dividend Stocks

How to Use a TFSA to Generate $500 in Monthly Tax-Free Income

Need $500 a month tax free? At a 6.9% yield, about $87,000 in a TFSA could do it. See how…

Read more »

customer uses bank ATM
Dividend Stocks

TFSA Withdrawal Rules Every Canadian Investor Should Know

Beware that re‑contributing withdrawn funds in the same calendar year can lead to a penalty from potential excess contribution.

Read more »

A woman stands on an apartment balcony in a city
Dividend Stocks

A 5% Dividend Stock to Buy for $100 Every Month

Here’s a 5% dividend stock that can generate $100 every month from a large portfolio of real estate properties spread…

Read more »

woman holding steering wheel is nervous about the future
Dividend Stocks

Tax Refund or Bonus Coming? A Smart Way to Fund Your Emergency Cushion

A refund or bonus could bring your emergency fund months closer to completion and give your investments more time to…

Read more »