If you’re interested in owning rental properties but don’t want to spend your retirement dealing with tenants or shoveling driveways, then this might be the most important message you ever read.
That’s because in this article I’m going to show you how to collect thousands of dollars in monthly rental income without becoming a landlord if you act by November 27. Let me explain.
Earn a ‘rent cheque’ without becoming a landlord
The blueprint for getting rich in real estate is simple: buy a few properties, take care of your tenants, and pay off the mortgages. In just a few years, you will have created a dynasty of wealth that can last generations.
You don’t need a fancy MBA to figure this out. Roughly 70% of Canadians own a home. Basically, you do five times what the average person does once.
But aside from cashing those rent cheques every month, becoming a landlord is not for everybody. Late payments, leaky faucets, broken water heaters — these are the issues that landlords have to deal with. While we could all use the extra money, owning rental properties are no walk in the park.
However, there is a way to collect monthly rental income without buying even an acre of land. Simply put, I’m talking about becoming a partner with an already established, highly successful landlord: RioCan Real Estate Investment Trust (TSX: REI.UN).
As regular readers know, Real Estate Investment Trusts, or REITs, are a great place to look for income. A REIT is essentially a real estate management company. They hold properties, collect rents, and pass on their income to unitholders. Thousands of ordinary investors own them for their big, reliable distributions.
RioCan is one of my favourite names in this space. The trust’s business empire includes over 300 properties across North America, totaling nearly 79 million square feet of real estate. Almost all of this is currently occupied.
However, RioCan doesn’t deal much in your typical apartment buildings or single-family homes. Instead, the fund specializes in retail and commercial real estate, an area of the market usually restricted to big, institutional investors. If you live in Canada, you have property visited several of its shopping malls and big-box stores.
RioCan rents out its properties to blue-chip businesses such as Winners, Future Shop, and Shoppers’ Drug Mart. Needless to say, these tenants aren’t going out of business any time soon. They’re on far sounder financial footing than the typical person answering an ad on Kijiji.
However, the best part is that as a partner with this landlord there’re no toilets to unclog or gutters to clean. The day-to-day hassles of managing these properties are none of your concern. You just have to sit back and wait for the cash to arrive in your brokerage account.
Collect your first ‘rent cheque’ by December 6
RioCan passes on most of its income in the form of consistent, oversized ‘rent cheques’. Since 1994, the trust has never missed a distribution payment. And I’d expect this firm to maintain that payout for many more years to come.
You can collect your first payment in just a few weeks. Today, the trust sports an annual yield of 5.3%. And if you become a partner by November 27, your first rent cheque is expected to arrive on December 6.
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This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.
Fool contributor Robert Baillieul has no position in any stocks mentioned.