How to Generate Passive Income from Short-Term Rentals
How to Generate Passive Income from Short-Term Rentals
Investments come in many forms. Many entrepreneurs start businesses, run them for a while and build them into large entities that employ hundreds or even thousands of people. Another type of investment is buying into an existing business, becoming a partial owner and enjoying a portion of the profits.
But the most successful investors know that money is not the most valuable commodity; time is. The most successful investors know that passive income is king.
What is Passive Income?
Passive income is money generated that doesn’t require a trade of money for time. Passive refers to the amount of action required on the part of the investor. In a passive income investment, the investor should not have to do much of anything after some initial action. In other words, there is some action needed to initiate passive income. But after that, the money should come in with little to no more effort on the part of the investor.
Confusion About Passive Income
Loosely interpreted, the IRS defines passive income as regular earnings that come from a source other than the investor. The form goes on to say that real estate investment is a form of passive income. That’s a bit confusing because anyone who has ever become a landlord can tell you that it is anything but passive income. When you spend your weekends performing maintenance on a rental and answering tenant calls on your vacation, that’s not passive income. That’s called a second job.
True Passive Income From Rental Real Estate
True passive income comes from rental real estate where you have hired a property management company to take care of it for you, such as a property management company in Scottsdale, AZ. A property management company takes care of everything from creating a boilerplate lease agreement, to screening new tenant applicants to fixing plumbing leaks at 2 a.m. on a holiday weekend. Meanwhile, you and your family are relaxing together, enjoying life. That’s passive income.
Whether you need Airbnb property management in Scottsdale, AZ, property management for a vacation rental or a rental property ten blocks from you, Sojourn Properties does what its name implies; allows you, the investor, to take a sojourn and have passive income, while they do all the actual work. Contact us today to learn more.
