Thinking About Buying a Rental Property in 2024? Consider Doing This Instead

Many people purchase rental properties to start collecting passive income. They can be a great way to do that, as the rental income can usually cover the expenses and then some.

However, rental properties have their pitfalls. A big one is that they're not exactly passive investments. Unless you hire a property manager, you'd have to manage tenants and maintenance. Meanwhile, unplanned repair costs can quickly turn a rental property from a moneymaker into a money pit.

Because of that, those thinking about buying a rental property might want to consider purchasing shares in a real estate investment trust (REIT) instead. REITs enable anyone to invest in real estate to enjoy truly passive income. Realty Income (NYSE: O), Mid-America Apartment Communities (NYSE: MAA), and Invitation Homes (NYSE: INVH) are great REITs to consider buying.