Real Estate Investing Glossary
Passive income
Passive income is money earned with limited day-to-day involvement.
Passive income is money earned with limited day-to-day involvement. For a rental investor, it usually means rent collected while a property manager handles daily operations.
Why it matters to a Las Vegas investor
Few Las Vegas rentals are fully hands-off, because someone must still make decisions and oversee the team. Our article on passive income goals explains what it takes.
Read more from Fernwood
- Achieving Your Passive Income Goal with Less Capital
- Why Invest in Real Estate?
- How to Select the Right Property Manager
Related terms
Questions about Passive income
Is all rental income passive?
No. The label depends on involvement and, for tax purposes, on specific rules.
What makes rental income more passive?
A capable property manager and a sound investment team reduce the daily work.