People make their living by the services or work they do. This income is lost if the worker stops working. Passive income refers to earnings from assets that the owner isn’t actively involved in. This is how your money works for yourself, and it’s the only way you can achieve financial freedom.

Investors have found Real Estate Investment is to be a great opportunity to invest in. It is common to believe that passive income real property requires little effort. Asset owners must prepare the groundwork for income generation, depending on which type of rental strategy they choose. Your rental space will generate residual income, even if you don’t work regularly, once it is up and running. Many owners have built substantial wealth by using the traditional rental strategy. Investors buy commercial properties or homes and rent them out. You can earn recurring income as a landlord.

Space is a service

People prefer to have access to services over owning them. We live in an “on-demand” world. This shift is evident all around us: Netflix instead of DVDs, Uber instead cars, and on-demand this, off-demand that. Instead of purchasing a product, subscribe and use a service that allows you to access the features you need.

This new model is a result of low rental yields in traditional rentals. Space is a service that combines a physical location with certain amenities to offer an on-demand experience. This model’s value is partly explained by its plug and play model. It offers all amenities being managed by the provider of space, as well as shared access to underutilized assets that can be used effectively. This transforms landlords from rent collectors to service providers.

Coliving Spaces Is a housing arrangement in which renters share underutilized amenities such as kitchen and living room. It accommodates more people than the average housing situation. It is financially appealing to share living quarters in cities where there is a shortage of affordable housing. Students and young professionals are attracted to this option because it provides flexibility, affordability, plug-and-play living, community engagement, and a hassle-free way of living.

According to Anarock Property Consultants, co-living offers a 7–11 percent higher rental return than the national average of 3 percent for asset owners Short-term rentals furnished accommodation that can be rented for a short period of time, usually from a few days up to a few weeks. This is a great way to make more income if you have a property that you can position well as an alternative for a hotel room. Depending on where you live, STRs can provide a 30% better profit than long-term rentals.

You can either manage the rental yourself or hire a property manager.

Conclusion

Many investors have found the Real Estate Market to be a great way to increase their income and achieve financial freedom. To be successful in investing, you need to have a good understanding of the local market. While buying property may seem prohibitive for some, there are other options available such as Real Estate Investment Trusts (REITs), Crowdfunding and Timeshares. These can be purchased and generate passive income.