How to Invest in Real Estate without becoming a Landlord

The most significant deterrent for people when it comes to residential real estate investment is the idea of becoming a landlord, and rightfully so.

Being a landlord is like having a second full-time job that you can never clock out of. As a landlord, it’s your responsibility to ensure your tenants are provided safe & adequate housing.

That means when the furnace shuts down, you need to call the repair company and pay out of pocket for the repairs. When your tenants get noise complaints from the neighbours, that’s on you too.

In Ontario, the Landlord and Tenant Act is in place to ensure you’re doing your job properly and more often than not, the act works in favour of the Tenant.

But when the property market is as hot as it is, it feels like you have to invest in real estate to get the most out of your money.

Did you know that you can invest in real estate & reap all the benefits without actually owning a single property?

Real Estate Investment Trusts (better known as REITs) get a portion of rental income at the cost of a stock.

What is a REIT?

A REIT is an entity that specializes in owning and operating properties, including residential and commercial buildings, that generate income.

Most REITs have a solid mix of assets that provide their investors with a diversified portfolio. By mixing assets and their locations, REITs provide a hedge against regional downturns that could otherwise damage their rental income.

Unlike regular stocks, even if the assessed value of a REIT’s property falls for some reason, as long as rental income remains steady, your dividends should too.

The best part of investing in REITs is that you get none of the headaches associated with being a landlord.

As with all investments, REITs come with risk. Before making any investments, you should do your due diligence and ensure you’re choosing the right REIT.