The IRS qualifies income earned from rental properties as passive. However, anyone who has ever owned a rental property knows that being a landlord is anything but passive. It requires active management to find and manage tenants, pay the bills, and keep up with repairs.

The good news is that there are alternatives for those who love the idea of generating passive income from real estate but don't want to work so hard for that money. One easy way to get on the passive income gravy train is to invest in real estate investment trusts (REITs). Here are two top REITs that provide some of the benefits of owning rental properties without the effort.

Most rental property owners start by purchasing a single-family home that they rent out. While managing one house isn't a lot of work, owning one rental property likely won't produce the passive income a person will need to retire. For that, you'd need a whole portfolio of properties, which would be a lot more work to manage.

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Source Fool.com