Collect Up to $1,200 in Monthly Rental Income From Boardwalk REIT

Boardwalk REIT (TSX:BEI.UN) allows you to collect monthly rental income without becoming a landlord.

| More on:
The Motley Fool

Nowadays, it’s not easy to find a safe stock that pays out much better than 1%, but I’ve found a business that yields three times more than your average company.

This unique firm owns hundreds of apartment buildings across the country. This is how it has been able to deliver so much cash to unitholders. Even better, it pays investors monthly, so you don’t have to wait to start cashing in.

However, if you want to start collecting these consistent, oversized rent cheques, then you have to act fast. The next round of distributions are scheduled to be mailed out soon. To be eligible, you must take action by Friday, March 27. 

Collect up to $1,200 in monthly income without becoming a landlord

Owning rental properties is a great business. You buy a few houses, love your tenants, and pay off the mortgages. In 20 years or less, you will have built a legacy of wealth that can last generations.

But owning real estate is not for everybody. There are a lot of hassles—mowing lawns, collecting security deposits, and chasing down late payments. Not to mention the worry of tenants destroying your property. Sure, we could all use the extra money, but becoming a landlord isn’t easy. That’s why you might be interested to learn about a way to collect monthly rental income without buying properties yourself.

I’m talking about investing in an established, well-diversified landlord—Boardwalk REIT (TSX:BEI.UN). Here’s why this trust deserves a spot in your portfolio.

Real estate loves inflation. Think about all of the physical things that go into a new building: lumber, bricks, nails, wiring, pipes, fixtures. And don’t forget about paying contractors, architects, and engineers. Do you think these components will cost more in the years to come? Of course they will.

In the future, constructing new buildings will be more expensive. This gradual inflation will pull up values for existing properties. Through Boardwalk, you will own a share in these existing buildings. Your property values will increase. Your rents will increase.

Now, owning Boardwalk won’t make you the talk of your next cocktail party. That’s because the trust’s portfolio consists of regular old apartment buildings across Canada. However, what I love about these assets is that they will continue to generate cash, even if the rest of the economy struggles.

You can almost think of Boardwalk as the Dollarama of housing. Dollar stores sell household staples and people don’t stop shopping there when business tanks. Boardwalk is the same idea, except in real estate. Sure, it’s nothing fancy, but people will always need to have a roof over their head.

For unitholders, this has translated into dependable income. Since 2004, long-time partners have collected 122 consecutive rent cheques. Today, Boardwalk pays investors an annual distribution of $2.04 per unit, which comes out to a yield of 3.5%.

Earn monthly rental income starting April 15

Boardwalk is a compelling alternative to owning real estate yourself. There’s no maintenance or upkeep; a professional management team handles all of the daily operations.

Starting with a $42,000 investment, you can earn an extra $120 per month in distributions. If you invest $420,000 (about the cost of buying your own rental property), then you can collect $1,200 in monthly income.

The next round of distributions are scheduled to be mailed out in a few weeks. So, if you become a partner by March 27, you’ll be eligible to collect your first rent cheque on April 15.

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.

More on Dividend Stocks

A close up image of Canadian $20 Dollar bills
Dividend Stocks

TFSA Investors: Put $45,000 in These Top TSX Stocks and Watch Your Passive Income Roll In

Are you looking to retire early? Here are a few ideas about how your TFSA could earn a passive-income stream…

Read more »

Human Hand Placing A Coin On Increasing Coin Stacks In Front Of House
Dividend Stocks

Love Passive Income? Here’s How to Make Plenty of it as a Real Estate Investor

You could definitely create passive income by investing in pure real estate, but you could make just as much, if…

Read more »

Make a choice, path to success, sign
Dividend Stocks

2 High-Yielding Dividend Stocks You Can Buy and Hold for Years

These two high-yielding dividend stocks can be the perfect addition to your portfolio, as the bear market causes payout yields…

Read more »

Retirees sip their morning coffee outside.
Dividend Stocks

TFSA Wealth: How to Turn $88,000 Into $1 Million for Retirement

Canadians can use the TFSA to hold a basket of diversified equity investments, allowing you to turn a $88,000 investment…

Read more »

Electricity high voltage pole and sky
Dividend Stocks

Better Buy: Algonquin Stock, Brookfield Renewable, or Fortis?

Algonquin Power stock, Brookfield Renewables, and Fortis are well known Canadian utility stocks. But which one is a better buy…

Read more »

Dollar symbol and Canadian flag on keyboard
Dividend Stocks

3 Canadian Gems to Buy Amid Rising Interest Rates

Here are top TSX stocks that could keep outperforming broader markets.

Read more »

data analyze research
Dividend Stocks

TFSA: Invest $29,000 in These 3 Stocks and Earn $515 Each Month in Passive Income in 2023

The benefits of the TFSA can be leveraged to hold a basket of dividend stocks and generate a stream of…

Read more »

woman data analyze
Dividend Stocks

2 Stocks to Buy and Then Never Sell

Conservative investors who seek capital protection and long-term price appreciation should dig deeper into CNR and IFC stocks.

Read more »