Latest news with #rentalincome
Yahoo
6 days ago
- Business
- Yahoo
Equity Residential Q2 FFO Meets Estimates, Rental Income Rises Y/Y
Equity Residential EQR reported second-quarter 2025 normalized funds from operations (FFO) per share of 99 cents, which met the Zacks Consensus Estimate. The figure improved 2.1% from the year-ago quarter. Results reflect a rise in same-store revenues and physical occupancy on a year-over-year basis. The company increased its guidance for 2025 normalized FFO per share. Rental income of $768.8 million slightly missed the consensus mark of $769.3 million. Rental income was up 4.7% year over year. According to Mark J. Parrell, Equity Residential's president and CEO, 'We are pleased to raise the midpoints for our same store revenue and net operating income guidance. We are seeing sustained demand and a financially resilient customer across all our markets with new supply levels the main determinant of market revenue performance.' EQR's Q2 in Detail Same-store revenues were up 2.7% year over year, above our estimate of 1.8%. Same-store expenses flared up 3.7% year over year versus our estimate of 1.7%. Consequently, same-store net operating income (NOI) climbed 2.3% year over year, above our estimate of 1.8%. The average rental rate increased 2.6% year over year to $3,187 in the quarter ended in June. Meanwhile, the same-store portfolio physical occupancy improved by 20 basis points (bps) year over year at 96.6%. Our estimate for the metric was 96.5%. Same-store residential revenues were up 2.9% year over year, while expenses increased 3.7%. Same-store residential NOI expanded 2.5% year over year. The new lease change for its residential same-store properties was down 0.1%, while the renewal rate achieved by EQR was 5.2% for the second quarter. The blended rate for the quarter was 3%. The physical occupancy for this portfolio was 96.6%, improved 10 bps sequentially. EQR's Portfolio Activity In the second quarter of 2025, Equity Residential sold one property in Seattle, consisting of 289 apartment units, for $121 million. Moreover, the company acquired a portfolio of eight properties, consisting of 2,064 apartment units, located in suburban Atlanta for an aggregate purchase price of nearly $533.8 million. In the first half of 2025, it completed one joint venture development project in its New York market, consisting of an aggregate of 450 apartment units, for around $201.2 million. In the same period, the company completed a wholly owned development project in each of its San Francisco and Denver markets, consisting of an aggregate of 495 apartment units, for a total cost of nearly $237.8 million. EQR's Balance Sheet Equity Residential exited the second quarter of 2025 with cash and cash equivalents of $31.3 million, down from $39.8 million recorded as of March 31, 2025. The net debt to normalized EBITDAre was 4.45X, which increased from 4.21X in the previous quarter. The unencumbered NOI as a percentage of the total NOI was 90.4% in the quarter, down from 90.5% in the prior quarter. EQR Raises 2025 Guidance For the third quarter of 2025, the company projects normalized FFO per share in the band of 99 cents to $1.03. The Zacks Consensus Estimate is currently pegged at $1.00. For 2025, Equity Residential expects normalized FFO per share in the band of $3.97-$4.03, up from the $3.90-$4.00 range guided earlier. The Zacks Consensus Estimate is currently pegged at $3.97. The company's full-year guidance incorporates projections for same-store revenue growth of 2.6-3.2%, an expense increase of 3.5-4.0%, and an NOI expansion of 2.2-2.8%. Physical occupancy is expected at 96.4%. EQR's Zacks Rank Equity Residential currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Equity Residential Price, Consensus and EPS Surprise Equity Residential price-consensus-eps-surprise-chart | Equity Residential Quote Performance of Other Residential REITs UDR Inc. UDR reported second-quarter 2025 funds from operations as adjusted (FFOA) per share of 64 cents, surpassing the Zacks Consensus Estimate of 62 cents. This also compares favorably with the prior-year quarter's reported figure of 62 cents. Results reflected year-over-year growth in same-store NOI, led by a higher effective blended lease rate. UDR also raised its 2025 FFOA per share guidance. Essex Property Trust Inc. ESS reported a second-quarter 2025 core FFO per share of $4.03, beating the Zacks Consensus Estimate of $3.99. The figure also improved 2.3% from the year-ago quarter. ESS' quarterly results reflected favorable growth in same-property revenues and NOI. However, the same-property operating expenses partly acted as a dampener. Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Equity Residential (EQR) : Free Stock Analysis Report United Dominion Realty Trust, Inc. (UDR) : Free Stock Analysis Report Essex Property Trust, Inc. (ESS) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
6 days ago
- Business
- Yahoo
Can You Really Retire on Rental Income With Just $100 to Start?
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Retiring early on rental income has long been the gold standard for passive wealth. But for most people, that goal comes with a catch: you need serious money to buy rental properties, and even more to manage them well. The dream of building a portfolio of cash-flowing homes sounds great—until you realize you need a six-figure down payment, a rock-solid credit score, and the time and energy to handle tenant issues, repairs, and property management. That's where most people stop. Shop Top Mortgage Rates Personalized rates in minutes A quicker path to financial freedom Your Path to Homeownership But a new wave of platforms is changing that—and one in particular, called Arrived, is making it possible to start building a rental income stream with just $100. It's not magic, and it's not a shortcut to overnight riches. But for long-term investors looking to slowly build passive income that could one day help fund retirement, Arrived offers a radically more accessible starting point. The question is: can you actually retire on rental income if all you start with is $100? A New Kind of Real Estate Investing Let's be clear—Arrived isn't a REIT, and it's not a real estate crowdfunding site that only serves wealthy, accredited investors. It's a platform that lets anyone buy fractional shares of real single-family rental homes. You don't need to own the whole house. You don't need to qualify for a mortgage. And you definitely don't need to be a landlord. Instead, you browse through available properties, pick the ones you want to invest in, and buy shares, starting at just $100. Each home is owned through a special LLC, and you become a shareholder in that property. From there, Arrived handles the rest: they manage the property, collect rent, take care of repairs, and send you quarterly income distributions. When the property is sold, typically after 5–7 years, you also get your share of any appreciation gains. It's a long-game approach to real estate, designed to make passive income possible even for those starting small. Don't Miss: 'Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. You can invest today for just $0.30/share. Warren Buffett once said, "If you don't find a way to make money while you sleep, you will work until you die." Here's how you can earn passive income with just $100. What Retirement on Rental Income Really Takes Retiring on real estate isn't just about owning property—it's about owning enough income-producing assets to replace your paycheck. Traditionally, that meant buying one property at a time, slowly building equity, reinvesting the profits, and eventually replacing earned income with rental income. But with a platform like Arrived, that same concept becomes far more scalable—because you can spread your money across dozens of properties in different cities, all without the risk of being tied to a single mortgage or market. If you're starting with $100, no, you're not retiring next year. But that's also not the point. The idea is to start small, reinvest your earnings, and build over time. Many Arrived investors gradually build portfolios worth thousands (or tens of thousands) of dollars by reinvesting their quarterly dividends and adding new capital when they can. The best part is, you can build that portfolio without taking on new debt, managing a single tenant, or making real estate your full-time job. Real Returns From Real Properties Unlike high-risk speculative plays, Arrived focuses on single-family homes in markets with long-term demand. These aren't fixer-uppers or high-leverage flips—they're stable rental properties that generate real cash flow. In Q4 2024, Arrived paid out $1.84 million in dividends across 365 homes, with an impressive 92% stabilized occupancy rate. That's not fantasy money. That's rent from real tenants, paid out to investors. Even better, many of those leases beat forecasted rent projections, and the average lease term was over 15 months. That kind of consistency makes Arrived feel a lot more like a stable retirement play than a trendy investment fad. You get quarterly income, long-term upside, and access to the kind of tax advantages that normally only go to traditional landlords—like depreciation and write-offs on your share of expenses. Building Wealth Over Time—Without Being a Landlord Here's the thing most people miss: retirement wealth doesn't come from flashy investments—it comes from compounding and consistency. If you invest $100 and reinvest the dividends every quarter, you're not going to see life-changing money right away. But if you keep adding $100, $250, or $500 every month, and reinvest your returns into more homes across the platform, you're gradually building a diversified real estate portfolio that produces income month after month—even while you sleep. And unlike a rental property you own outright, you're never dealing with maintenance calls, vacancy stress, or tenant disputes. That means you can continue investing while focusing on your career, running a business, or just living your life. You're not locked into one house or one city—you can invest across dozens of markets, adjusting your portfolio to match your goals over time. So, Can You Actually Retire With Arrived? Yes—but with a caveat. You won't retire only from your first $100. But what Arrived gives you is a rare opportunity: a legitimate way to start earning passive income from real estate with a tiny upfront investment, and the ability to scale that into something meaningful over time. The combination of low entry point, no landlord duties, and consistent payouts makes Arrived one of the most accessible long-term wealth-building platforms available today. Whether you're investing toward retirement in 30 years or trying to replace part of your income within the next 10, the building blocks are all here—waiting to be stacked one share at a time. See Next: Maximize saving for your retirement and cut down on taxes: Schedule your free call with a financial advisor to start your financial journey – no cost, no obligation. It's no wonder Jeff Bezos holds over $250 million in art — this beloved alternative asset has outpaced the S&P 500 since 1995, delivering an average annual return of 11.4%. This article Can You Really Retire on Rental Income With Just $100 to Start? originally appeared on
Irish Times
02-08-2025
- Business
- Irish Times
How much do landlords in Ireland really earn? You might be surprised
How much do landlords in Ireland actually earn? To listen to the many lobbying groups who dominate the property sector in Ireland, the answer is not nearly enough to compensate for all the regulations and bureaucratic hurdles they face. This, it is argued, explains what is often characterised as the ' mass exodus ' from the private rental sector although the number of registered landlords has actually increased in recent years . More than 80 per cent of Irish landlords have one or two tenancies and, we're frequently told, are mostly ordinary people whose livelihoods depend on rental income. This narrative suggests landlords are mere, to use the international term, 'mom-and-pop' investors who are 'struggling' or 'earning pin money' (an argument used by short-term let lobbyists as well). Or they are 'accidental landlords', sometimes represented as almost victims of the housing crisis themselves. This is not borne out by the data. The reality internationally, as well as in Ireland, is that small landlords have higher household income and wealth levels. Here, data made available on request from the CSO's 2024 Survey on Income and Living Conditions shows that the gross household income of those with a rental income from a second property or rent-a-room is €133,800, or 85 per cent higher than households without a rental income, who earn €72,500. And their net income is 56 per cent higher. READ MORE Average income premium of households with rental income At the other end of the scale, Ireland's largest landlord, Ires Reit , averaged €21,768 rental income per annum from each of its 3,668 units in 2024. And it was able to shelter all this income from tax via a special company structure . The reason such narratives continue to be so pervasive is partly down to the effectiveness of several large lobbying groups that dominate the property sector in Ireland. Representing professional bodies, there's the Institute of Professional Auctioneers and Valuers and the Society of Chartered Surveyors Ireland . Ireland's small landlords are represented by the Irish Property Owners' Association. Property Industry Ireland is part of Ibec . Irish Institutional Property represents large landlords and is run by a former secretary general of Fianna Fáil and senator, Pat Farrell . Influencing policy since 1935 is the Construction Industry Federation, which was recently in the headlines after a terrace it owned in Dublin 6 partly collapsed . It was run for many years run by a former Progressive Democrats minister, Tom Parlon. Banking and Payments Federation Ireland is run by a former Fine Gael minister, Brian Hayes, and Airbnb is represented by a former Labour TD, Derek Nolan. All the former politicians have unfettered entry to Leinster House, allowing what Róisin Shortall called ' undue access ' to Ministers and influential politicians. Other groups peddle policy ideas mostly imported from elsewhere. Progress Ireland, which recently proposed garden cabins without planning permission as housing, was reportedly offered a meeting with senior Government advisers less than 24 hours after sending an email to Micheál Martin 's office. There is an obvious irony here: lobbying bodies demand " policy certainty " and stability for their members, and yet it is their function to lobby for policy change. Certainty and stability for developers is coincidentally mentioned in 2021's Housing for All policy, after which the Government went on to make numerous industry-friendly changes, including restricting access to judicial review and introducing inferior apartment standards - changes for which the Minister for Housing James Browne can unfortunately provide no credible evidence . This is not a uniquely Irish phenomenon. As nations' economies globalise, so too has the reach of international property money and its lobbyists. In the private rented sector internationally, global investors were enticed back post 2008 by tax-free rental income and the promise of significant profits. As housing for sale and mortgage credit dried up, the private rented sector became the tenure of necessity and grew significantly. Calls for meaningful changes to the sector to allow for it to become a better option for tenants were and are strenuously resisted everywhere. What is interesting about resistance to change is the consistency of narratives across countries. Research from Sweden's Uppsala University show three main arguments appear repeatedly: the 'vulnerable landlord', the 'counterproductive effects' and the 'violation of property rights'. This is a lobbying playbook. We've seen how the vulnerable landlord argument works in Ireland. The counter-productive effects argument claims that pro-tenant measures ultimately harm tenants by disincentivising rental housing supply and maintenance. This claim works on the basis that there is perfect competition in the housing market and that all other factors remain equal, what economists call ceteris paribus . But there's little competition in housing markets due to the fact that the supply of market land is limited and also privately owned, and other factors such as demand and interest rates are always changing, so nothing remains equal. Property lobbyists and right-of-centre politicians argue that the problem of high rents can be solved by expanding the supply of private rental housing. The logic is that high rental prices stimulate new supply, which will eventually lower rents. This sounds very familiar. Even if you ignore the interim financial pain of rising rents for existing tenants, this argument is ropey. Whereas rising prices may make the construction of housing for sale or rent more attractive, rising prices also make waiting around, or hoarding, just as attractive (as does increasing the density of housing). Owners of valuable land, who are unsurprisingly keen to extract the most profit from it, will not necessarily crystallise their risk by commencing construction, and so will not necessarily supply housing any faster. There is currently permission granted for about 70,000 new houses and apartments nationally that are lying around not commenced. As land prices rise, a natural brake is applied to new housing supply. The third argument found internationally concerns the violation of property rights. Such absolutist views ignore the social function of property. This violation-of-rights argument was recently deployed by a landlord who illegally evicted a tenant, saying at the Residential Tenancies Board hearing that ' no external authority may dictate his housing decisions '. The RTB disagreed. No matter what measure is proposed – tenants' rights, changes to planning rules or regulations – the playbook of counter arguments is automatically mobilised. There is little detailed critiquing of individual proposals. Instead, we're offered off-the-shelf responses driven by ideology, entrenched beliefs, and profits. The real contest here is between the needs of the market and the needs of society. This permanent tension is going to arise when a Government's strategic approach - as is there case here - is to rely on the market for the supply of most of its housing, private and public. Dr Lorcan Sirr lectures in housing at Technological University Dublin
Yahoo
29-07-2025
- Business
- Yahoo
Dave Ramsey gets frank with Seattle woman $100K underwater on Florida home — what he says to do about her ‘sunk costs'
When Sarah from Seattle recently called into The Ramsey Show, Dave Ramsey described her situation as 'a ticking time bomb." She owns a condo in Seattle with a $2,300 monthly mortgage plus homeowners association (HOA) fees, and purchased a second property in Florida last year at the top of her budget. Don't miss Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 6 of the easiest ways you can catch up (and fast) You don't have to be a millionaire to gain access to this $1B private real estate fund. In fact, you can get started with as little as $10 — here's how Now, the Florida mortgage costs her $4,000 a month, rental income of $2,700 doesn't cover it and the property remains in negative equity. Why she's underwater Originally from Florida, Sarah knew she eventually wanted to return to be near her aging parents. She says she "freaked out because of the housing situation.' With prices going up, she worried that if she waited too long she'd get priced out of the market. So, she went ahead and bought the second property. Shop Top Mortgage Rates Personalized rates in minutes A quicker path to financial freedom Your Path to Homeownership Unable to rent it out for more than a year, Sarah finally has tenants, but their rent falls $1,300 short of her monthly mortgage payment. She's spent approximately $23,000 in closing costs and $50,000 more trying to sustain the property. Despite having $50,000 in savings and a strong take-home pay of $8,600 a month, she simply can't afford to live this way anymore. Ramsey and cohost Jade Warshaw strongly recommended that Sarah sell the property. 'You have a problem here that is not going to get better … If you have to write a $10,000 check to get rid of your mistake, do it,' Ramsey asserted. The pair recommended immediate action, first by quickly listing the home. Ramsey warned she'd pay some "stupid tax" for her mistake, but she needed to take a short-term loss to stop the financial crisis. "You're going to get some of your money back, but you're not going to get all your money back," he said. Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says — and that 'anyone' can do it The sunk-cost fallacy and its dangers Sarah's reluctance to sell stems from the sunk-cost fallacy: the belief of having invested too much to walk away. Ramsey warned against this mindset. "There may not be a way to get back the money that's lost. You're doing well if you can break even … Mistakes cost you,' he said. Ramsey and Warshaw advised Sarah to focus on cash flow, not past expenses, cautioning against letting emotional attachment or fear keep her trapped. If she keeps the home, they warned that the situation could get worse through things like insurance issues, vacancy cycles or emergency repairs. "We're trying to stop the bleeding, not reverse the fact that we had a car wreck." Sellers in Florida markets like Miami are increasingly delisting homes rather than cutting prices, suggesting buyers are becoming scarce. Meanwhile, Florida home prices dipped 2.2% year-over-year to a median of around $412,400 as of May 2025, according to Redfin. These conditions give all the more reason for Sarah to get out of the market sooner than later. Plus, carrying the property risks continued price drops, increasing home insurance and HOA costs and the chance of foreclosure. Florida had 2,780 foreclosure starts in May 2025, among the highest in the U.S. Homeowners there face rising insurance premiums, with the average cost increasing 45% from 2017 to 2022, alongside higher HOA fees and property taxes — all putting sellers at risk even in rising markets. Nationwide, it's not much better. In May across the U.S., housing prices were up just 0.6% to $440,910, while the number of homes sold was down 4.5% year over year. Affordability continues to suffer due to high mortgage rates and regional oversupply. What to read next Robert Kiyosaki warns of a 'Greater Depression' coming to the US — with millions of Americans going poor. But he says these 2 'easy-money' assets will bring in 'great wealth'. How to get in now Accredited investors can now buy into this $22 trillion asset class once reserved for elites – and become the landlord of Walmart, Whole Foods or Kroger without lifting a finger. Here's how Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead Here are 5 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you? Stay in the know. Join 200,000+ readers and get the best of Moneywise sent straight to your inbox every week for free. This article provides information only and should not be construed as advice. It is provided without warranty of any kind. Sign in to access your portfolio
RNZ News
22-07-2025
- Business
- RNZ News
'Topping up $300 a week': How much money do property investors actually make?
Last year more than 50,000 property investors were making losses on their portfolios. (File photo) Photo: Unsplash/ Artful Homes A big chunk of property investors do not make money from their investments - and those who do are pulling in an average of less than $16,000 a year. RNZ revealed last year, more than 50,000 of the roughly 120,000 property investors in the country were making losses on their property portfolios. Now, new data released under the Official Information Act has shown even those with a profit were making a limited amount. In the 2024 tax year, the average rental income made across all entities reporting a profit was $15,680. Based on the average house price, that is a return of 1.7 percent. Individuals were making $13,240 and trusts $26,490. The year before, the average income was $15,590. A year earlier, it was $16,680 and in 2021, $14,800. Simplicity chief economist Shamubeel Eaqub said it highlighted people were not investing in property for cash yields but for other reasons. Simplicity chief economist Shamubeel Eaqub said capital gains was a motivator for investors. Photo: Supplied Those included being able to borrow from the bank to invest in property in a way that other investments were not able to, and the lack of tax on properties not captured by the bright line test. "The real motivation is capital gains - because the cash return means tenants aren't the main business, the house is. "Roughly, if your cash earning yield is 1.7 percent, and let's say the cost of equity is 10 percent - probably a bit higher in NZ, then investors are assuming house prices will increase by over 8 percent a year forever. "So we have this weird setup, that encourages people to make a pretty serious financial bet, through tax and banking regulation, and cultural norms." Including capital gains, investors would have made 6.6 percent a year on average over the past five years. In 2022, they would have had a 19 percent return, and in 2021, 15. percent, before recording total losses in the most recent two years. He calculated investors would have made an average $179,672 in the 2021/22 year, thanks to capital gains, and $111.464 the year before. But they would have lost almost $85,000 in the 2023 year and another $21,362 in the 2024. NZ Property Investors Federation spokesperson Matt Ball said he was not surprised by the data. "We have one rental property ourselves and I'm putting in $300 a week at the moment because I'm stuck on an interest rate of 6.65 percent. "But we've been doing that for the last year, 18 months. We'll make a loss just because that's how it is." He said property investment was not "winning Lotto". "It's hard work and to make money out of it you have to put in some effort. You can't just buy a place and sit down and watch the money roll in. "That's why if you can add a bedroom or upgrade it so you get a bit of rent of rent or whatever, do some work to it, that's the goal." He said 85 percent of property investors had another job. "I think if you could put the money into other investments you'd probably be getting a strong income… the leverage is the difference, I can't borrow $1 million to put into shares." Sarina Gibbon, general manager at Auckland Property Investors Association said some investors would be operating across multiple entities. "Since FY22, when interest deductibility started being phased out, the IRD hasn't been privy to the economic reality of investing, let alone reporting it accurately. It has been reporting legislated distortion. In FY24, landlords could only deduct 50 percent of interest costs. Cash-poor portfolios got pumped into the system and spat out as paper-rich operations. "So, no, the numbers are not surprisingly low; they are deceptively high. We are taxing revenue, not profit. This sort of tax distortion is nothing else but political theatre. Here's the irony, though: flawed as the policy was, it did rewire investor behaviour from accumulating to improving. "Sure, more deductible repairs and upgrades led to better-quality housing, but also higher rents. So the adversarial policy borne out of flawed design and bad leadership cornered investors into action to benefit their tenants and no one else." She said now investors could claim their home loan interest against their income again and interest rates had fallen, there was some breathing room. "In the long term, I expect investment to be more dynamic, yield-focused and taxable income from the investor cohort to grow." Property investment coach Steve Goodey said investors starting out would usually make losses but people who had been investing for a while would often have properties without mortgages. Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
