Why REITs are much safer than rental properties

Summary

  • A lot of investors believe that REITs are riskier than rental properties.
  • But once you dig into the fundamentals, you find that the opposite is true.
  • REITs are diversified, conservatively financed, liquid, professionally managed, and offer limited liability.
  • Rentals are concentrated, heavily leveraged, illiquid, management intensive, and put you at liability risk.
  • REITs are not only safer, but they are also more rewarding in the long run.

Here are 6 reasons the writer believes that rental properties are by far the riskier investments

Source: Seeking Alpha