Monthly Income From REITS Most people think earning rent means you have to buy a house, shop, or office first. But here’s the thing—you can earn rental income without ever owning a single property yourself.
Let’s break it down.
What Are REITs?
REITs—Real Estate Investment Trusts—are companies that own and manage income-generating properties.
Think premium office parks, shopping malls, or big business centers. These companies rent out those spaces to tenants and share the earnings with people who invest in them.
When you buy REIT units (just like you’d buy shares in the stock market), you’re basically becoming a part-owner in that portfolio of properties.
Why REITs Can Be a Smart Move
- No huge capital needed – You can start with a small investment instead of buying a whole property.
- Regular income – They’re required by SEBI rules to give at least 90% of rental profits back to investors, usually as dividends.
- Easy to buy or sell – They trade on stock exchanges, so you’re not locked in like with real estate sales.
- Diversification – You’re not betting on just one shop or flat—you’re part of a bigger, safer pool of properties.
How It Works – Step by Step
- REIT buys or develops premium commercial properties.
- Tenants pay rent to the REIT.
- REIT deducts expenses like maintenance and taxes.
- 90% of profits are distributed to investors as dividends.
- You receive payouts in your bank account while the value of your units may also grow over time.
Example: How You Could Earn
Let’s say you invest ₹50,000 in a REIT.
If that REIT’s annual dividend yield is 7%, you’d earn ₹3,500 per year—without worrying about tenants, repairs, or property taxes.
