The pursuit of passive income has recently become some sort of a trend, and long-term investing in real estate is one of the most appealing passive income streams. Buying properties to become a landlord makes sense if you have extra cash lying around and like the idea of making money while you sleep.
But keep in mind that being a landlord isn't as effortless as it might seem at first and it's not actually passive. On the contrary, it takes time and upfront investments to start getting the full benefit from passive income.
Related: Is Rental Property A Good Investment? 5 Benefits Of Real Estate Investing
If you already know how to earn extra income from rental properties, finding ways to take advantage of it should be your next step.
Make time for traveling
When was the last time you took a trip? If you can't recall any recent travel memories, it's probably time to take a vacation.
Whether you self-manage your rentals or pay a certified property manager, once you start generating passive income, you'll get more personal freedom and free up time for exploring.
Related: Becoming A Landlord: It's A Perfect Time To Start Property Business
How can you make it happen?
Although landlording is a full-time job, you don't need to spend most of your time in the office waiting for a tenant to drop off a rent check or mark a maintenance request as resolved. The opportunity to work remotely and still stay on top of your business is what makes the rental industry so attractive.
There are numerous digital solutions to optimize your landlord business and automate most of your daily tasks. With a solid property management system, the process of managing rentals from anywhere is a piece of cake. For instance, TenantCloud offers a great range of options that will help you to automate the process of managing rental properties and stay in touch with your tenants while exploring ancient architecture in Greece or enjoying stunning views in Norway.
With TenantCloud, it's easy to create residential agreements, collect online rent payments, assign work orders to service professionals, generate financial reports, create notices and reminders, and more. You don't need to be involved in every step of the renting process - the system will basically do it for you.
Consider Early Retirement
One of the perks of real estate passive income is that you have a chance to retire early. This kind of retirement solution makes a lot of sense since rental real estate provides a steady flow of income and offers an asset that can be passed down to heirs.
Relying on Social Security benefits is risky because you're never sure that you'll get anything from Social Security in the long run. To be eligible to claim benefits, you need to have an official employment and pay a portion of your income into Social Security- which can work for some people, but for people who want a more flexible career it can end up hurting you in the long run.
How can you make it happen?
Passive income through rental real estate allows for flexibility, especially because you can live in your properties or rent them out. TenantCloud accounting system will help you with that as well, as you can easily see what your net profit from your rentals is and make a savings plan for that.
Passive income from real estate can be very beneficial, but you'll need to develop an effective retirement strategy and boost your property management and real estate knowledge to get the most out of your rental investments.
Related: Real-tirement. Don’t Pass on Passive Income
You'll Finally Have Time for Hobbies and Side Projects
Another undeniable benefit of passive income is that you'll acquire even more opportunities to increase cash flow. Launching a vintage online store or developing a smartphone app is possible when you have extra money coming from rental properties.
Your favorite hobby isn't just a way to take your mind off problems, it can also become a money-making solution. Hobbies and side projects often pay off if, but you'll need to go above and beyond to make it happen.
How can you make it happen?
Due to TenantCloud, you can manage your rental properties from any part of the world and contact your tenants or service professionals whenever you need. Using TC Messenger, you can communicate with your residents inside the system. There's no need to use an additional messaging service.
