Passive Income from REITs refers to the earnings generated from investments in Real Estate Investment Trusts (REITs) without the need for active management or daily involvement in the real estate properties owned by the REIT.
REITs are companies that own, operate, or finance income-producing real estate across a range of property sectors. When an individual invests in a REIT, they typically receive dividends from the REIT’s income, which may include rents collected from tenants or profits from property sales. This income is considered "passive" because the investor is not directly involved in managing the properties or making operational decisions.
For example, if an investor purchases shares in a publicly traded REIT, they may receive quarterly dividend payments based on the REIT’s earnings without having to manage any property themselves. This makes REITs an attractive option for individuals seeking to earn passive income through real estate investments.
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