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Real estate has long been a cornerstone of wealth generation, and as 19th-century British philosopher and economist John Stuart Mill once said, “Landlords grow rich in their sleep.” However, being a landlord isn’t always as passive as it seems. From screening tenants and preparing lease agreements to handling maintenance and chasing rent payments, managing a rental property can be a time-consuming and stressful endeavor.

Fortunately, there are ways to earn monthly rental income without the hassles of being a landlord. One popular option is investing in real estate investment trusts (REITs), which are essentially giant landlords that own income-producing real estate and collect rent from tenants. REITs are required by law to distribute at least 90% of their taxable income to shareholders as dividends, making them an attractive choice for investors seeking passive income.

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Realty Income Corp. (NYSE:O), known as “The Monthly Dividend Company,” is a prime example of a REIT that pays its shareholders on a monthly basis. With a 55-year operating history, Realty Income has declared 646 consecutive monthly dividends and has increased its payout for the last 25 consecutive years. The company currently offers a 5.75% dividend yield, with a monthly dividend of $0.257 per share.

To earn $1,000 per month from Realty Income, an investor would need to own approximately 3,891 shares, which at the current share price of $53.66, would require an investment of around $208,791. For a more modest goal of $200 per month, an investor would need roughly 778 shares, or $41,747 worth of Realty Income stock.

While REITs like Realty Income provide an accessible way to invest in real estate without the responsibilities of property management, they come with their own set of risks. REIT shares can be volatile, and dividends are not guaranteed. Despite its impressive track record, Realty Income shares have fallen about 13% in the past year, though some analysts see a potential rebound on the horizon.

Another option for investors looking to take a more hands-on approach to real estate investing without the full responsibilities of being a landlord is Arrived Homes. This platform, backed by Amazon founder Jeff Bezos, allows individuals to invest in shares of specific rental properties for as little as $100.

Arrived gives investors more control than traditional REITs by enabling them to choose the specific properties they want to invest in. Investors can browse through available properties on the platform, review details about each property’s location, tenant and expected returns, and then decide which properties best fit their investment goals.

Arrived handles all the property management responsibilities, including finding tenants, collecting rent and handling maintenance, while investors sit back and collect their share of the rental income and any appreciation in the property’s value. With a monthly payout and price appreciation, Arrived offers a compelling alternative for investors looking to diversify their real estate holdings and have more control over their investments.

The bottom line? While becoming a landlord can be a lucrative way to generate passive income, it’s not the only option. REITs like Realty Income and platforms like Arrived Homes offer investors the opportunity to earn monthly rental income without the hassles of property management. As with any investment, it’s essential to conduct thorough research and understand the risks involved before committing your hard-earned money.

View available properties on Arrived

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This article How To Earn $1,000 In Monthly Rental Income While You Sleep (Without The Landlord Duties) originally appeared on Benzinga.com

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