Ways You Can Earn From Your Rental Property Investment

Passive income is an excellent way for you to earn extra cash through rental property investment. If you have been working a 9 to 5 job your entire life, have you ever wondered where all your hard-earned money is going? Rather than putting it all in a savings account (which usually doesn’t grow as much), you might want to think of other investment methods instead.

Real estate investors have slowly found their way to earn more through their properties. Among all kinds of property investments that you can venture into, one of the most popular and highly effective are rental properties. As their income grows steadily, some have gained returns on their investment right away that they can now afford to leave their day jobs. If you have already started looking for rental properties, great! As a bonus, check out this great way to calculate ROI on rental property. With this tool, you can narrow down your options as to which investment property is the best to start with.

Interested to learn more? Here are some of the ways you can earn from rental property investment:

1. The Property Appreciates In Value

Real property is one of the hardest and most stable assets that you can own in your life. If you don’t have a massive amount of cash you can spend on an investment, start small. You can start by purchasing one apartment unit and working your way from there. Even if you do not have tenants, your rental property is appreciating in value. Hence, in the future, if you decide to resell it, you can be guaranteed that you aren’t going to experience a loss. This is a lot better than other assets, like your car, wherein reselling it means that it already has depreciated in value. 

2. The Flexibility Of Rental Properties Make You Earn More

Rental properties allow you to earn more. By their nature, they are often very flexible, especially if the property is a house or a multi-bedroom apartment unit. If you cannot have your whole house rented out to a single tenant, you can do a little renovation job that will break your home into two or three (depending on the number of rooms and space), so that you can have multiple rental spaces. Apart from having these spaces rented out as homes, they can also be used for small offices. These can be transformed into photography studios, engineers’ and lawyers’ offices, and even doctor’s clinics. The opportunities of your rental property are numerous, hence it gives you a higher chance to enjoy a constant flow of profit.

3. The Price Of Rent Is Always Increasing

Apart from the value of the real property itself, the price of rent is also always increasing. Whether you have a commercial space or a residential type of property you can rent out, you can rely on the fact that the price of rent is always increasing. One very obvious example of this can even be seen in the lease contract of your tenants. Depending on your location, there will most likely be a stipulation for a yearly increase on the rent or once every two years, or whichever period you deem best. 

Therefore, in comparison with investing your money on a fixed savings account, you tend to earn more income and interest on your rental properties. Bear in mind that the interest rate of savings accounts are usually fixed, and it isn’t all the time that there is an increase.

4. The Means Of Having Properties Rented Out Are Numerous

All thanks to technology, having your properties rented out is no longer as difficult as it used to be in the past. Now, you have the flexibility to choose when it comes to the timeframe of your rent. For instance, would you rather go for short-term rentals, or are you more inclined to long-term rentals? If you have also chosen long-term rentals and there is a time when your property is devoid of any tenants, you can switch it up immediately to allow for short-term rentals.

Short-term rentals refer mostly to vacation rental properties. The market comprises of tourists who are visiting your locality or the place where your property is situated. There are many tourists now who would rather opt for apartment or house rentals rather than hotels, mainly if there are many of them in the family. Not only does it make them save on costs, but they can also enjoy more flexibility, such as being able to cook their own meals. This is what is commonly found on home rental apps, such as Airbnb.

Long-term rentals refer to tenants such as students, or those who are looking for houses or apartments their families can stay in. These contracts are often renewed yearly. 


Investing in rental properties is one of the best decisions that you can make to improve your finances. For many, they now enjoy so much freedom and financial stability that they have even left their full-time jobs. Not only do they earn more, but they also have more time to travel and time for their families. If you’ve got some extra cash waiting to be invested, now’s the time for you to get started on rental property investments.