Want to Be a Lazy Landlord? Here Are 3 of the Best Canadian REITs to Buy Now

If you’re looking to gain exposure to the real estate industry and become a lazy landlord, here are three of the best Canadian REITs to buy now.

The dream of many is to own a rental property and become a landlord. Residential real estate is an excellent investment. It’s almost always appreciating, and it’s highly robust. That’s why it’s so appealing to buy high-quality real estate stocks and become a lazy landlord. And the easiest way to become a lazy landlord is to find some of the best Canadian REITs to buy now.

There are a tonne of advantages to being a lazy landlord and buying high-quality Canadian REITs. In addition to the fact that you can start investing with even less than $100, buying REITs gives you more diversification and a fund managed by professionals.

So, if you’re looking to become a lazy landlord, here are three of the best Canadian REITs to buy now.

CAPREIT is one of the best real estate stocks in Canada

If you’re looking to become a lazy landlord, then without a doubt, one of the best Canadian REITs to buy now is Canadian Apartment Properties REIT (TSX:CAR.UN).

CAPREIT is a residential real estate fund that owns over 65,000 sites and suites in its portfolio. Most of this is located across Canada. However, it does have some exposure in European countries like Ireland and the Netherlands.

There are several benefits to a high-quality residential REIT, such as CAPREIT, especially if you’re looking to be a lazy landlord.

First off, unlike owning a single rental property, because you have exposure to over 65,000 sites and suites, and because they are located across Canada and in parts of Europe, your investment is highly diversified. In addition, you have a professional management team overseeing the portfolio of assets. Moreover, you gain exposure to a massive fund that can get access to capital far easier than individuals in order to grow its portfolio.

CAPREIT has done this extremely well in recent years, taking advantage of ultra-low interest rates to build out its portfolio and grow the value of the fund for investors.

In fact, over the last decade, it’s earned investors a compounded annual growth rate of more than 14.5%. So, if you’re looking to earn an attractive return while investing in the Canadian real estate industry, CAPREIT is certainly one of the best REITs to buy now.

Boardwalk REIT is one of the best Canadian REITs to buy now

Another excellent investment to consider today is Boardwalk REIT (TSX:BEI.UN). Boardwalk is another residential REIT. And while it’s still quite reliable, it’s been impacted more than CAPREIT over the last couple of years, offering investors a slight discount today.

And because it’s cheap to buy today, and it’s a REIT you can hold for years, Boardwalk has to be one of the best Canadian REITs to buy now if you’re looking to become a lazy landlord.

Part of the reason it’s been so badly impacted is due to the fact that more than half of its portfolio is located in Alberta. And through the last few years, as the oil industry has struggled, Alberta real estate assets have underperformed.

Now, though, as the country recovers, and the energy industry has the potential to continue to rebound in 2022, Boardwalk looks like one of the best Canadian REITs to buy.

Its funds from operations continue to grow in addition to ratios, such as the interest coverage ratio. So, as Boardwalk’s fundamentals continue to improve, it’s one of the top residential REITs for lazy landlords.

Morgaurd REIT is a top value play in this environment

Last on the list is one of the cheapest REITs in the country Morguard REIT (TSX:MRT.UN). Morgaurd is appealing, because it’s so undervalued and has tonnes of potential over the coming years.

Because it mainly owns retail and office properties, it’s understandably been impacted by the pandemic. But after two cuts to its distributions and the fact that the pandemic could start to wind down for good in 2022, buying Morguard at a significant discount today looks like an excellent opportunity.

Plus, at this price, Morgaurd offers a dividend yield of more than 4.5%. And after the two significant cuts to distribution, you can be confident that it’s much safer today.

So, if you’re looking to become a lazy landlord, Morguard is certainly one of the best Canadian REITs to buy now.

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 Daniel Da Costa has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

More on Dividend Stocks

woman retiree on computer
Dividend Stocks

1 Reliable Dividend Stock for the Ultimate Retirement Income Stream

This TSX stock has given investors a dividend increase every year for decades.

Read more »

calculate and analyze stock
Dividend Stocks

8.7% Dividend Yield: Is KP Tissue Stock a Good Buy?

This top TSX stock is certainly one to consider for that dividend yield, but is that dividend safe given the…

Read more »

grow money, wealth build
Dividend Stocks

TELUS Stock Has a Nice Yield, But This Dividend Stock Looks Safer

TELUS stock certainly has a shiny dividend, but the dividend stock simply doesn't look as stable as this other high-yielding…

Read more »

profit rises over time
Dividend Stocks

A Dividend Giant I’d Buy Over TD Stock Right Now

TD stock has long been one of the top dividend stocks for investors to consider, but that's simply no longer…

Read more »

analyze data
Dividend Stocks

Top Financial Sector Stocks for Canadian Investors in 2025

From undervalued to powerfully bullish, quite a few financial stocks might be promising prospects for the coming year.

Read more »

Canada national flag waving in wind on clear day
Dividend Stocks

3 TFSA Red Flags Every Canadian Investor Should Know

Day trading in a TFSA is a red flag. Hold index funds like the Vanguard S&P 500 Index Fund (TSX:VFV)…

Read more »

Paper Canadian currency of various denominations
Dividend Stocks

1 Magnificent Canadian Stock Down 15% to Buy and Hold Forever

Magna stock has had a rough few years, but with shares down 15% in the last year (though it's recently…

Read more »

Man holds Canadian dollars in differing amounts
Dividend Stocks

Earn Steady Monthly Income With These 2 Rock-Solid Dividend Stocks

Despite looming economic and geopolitical uncertainties, these two Canadian monthly dividend stocks could help you generate reliable income in 2025…

Read more »