9 Rental Business Ideas to Start in 2022 (2023)

Driven by the COVID-19 pandemics, which upended every aspect of our life, 2020 was a challenging year for most small business owners. And like most small businesses, the rental industry took a significant hit. However, being a very tenuous and resilient industry, it weathered the pandemics. As a result, the rental companies are now ready to start kicking again.

As the economy gradually roars back, campers, party-goers, and travelers are also gearing to get back on to it. If current statistics hold, the rental industry will be among the most lucrative industries to earn passive income.

If you're planning to start a rental business, this article will guide you on how to go about it, and it'll discuss the nine best rental businesses you can leverage to earn a reasonable income.

7 Steps Toward Starting a Rental Business

Running a successful rental business requires strategic planning, commitment, dedication, and hard work. The following seven steps increase your chances of success.

Develop a Practical Rental Business Idea

Every successful business has started with a practical idea. The same is true for rental businesses. The best rental business ideas will quickly earn you a loyal customer base, which is vital for a profitable rental business.

An essential aspect of this step is choosing the appropriate rental niche. Personal interests or trends will likely influence your choice. Either way, whether you're going for the simple rental niches like book rental, clothing rental, or dumpster rental or more demanding niches like construction equipment rental, tool rental, heavy equipment rentals, house rental, etc., the vital thing is that your idea is practical, executable and has profit potential.

Carry Out Market Research

Once you've worked out a practical idea, you carry out market research. Market research is vital for a solid business foundation. It gives your new business a competitive edge that enables it to thrive even in a new market. Good market research will reveal:

  • Your potential customers and pain points that drive their decisions.
  • Prices your target audience is willing to pay.
  • Your competitors
  • What's trendy in your chosen niche.

Prepare a Rental Business Plan

After carrying out market research, you need to work out a business plan. Your business plan aims to define your type of business, starting with a company description and ending with an executive summary. It shows financial projections like expected startup cost, revenues, profit margins, etc. Additionally, it details expansion strategy, ad strategy, rental unit pricing, and management techniques.

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Create a Robust Rental App or Software System

Now you've got a business name and financial projections. So your small business idea is beginning to shape up. First and foremost, having a robust rental app or software system is a must. A great rental app or software system reduces operational complexity. It streamlines daily workflow because rental businesses encompass various aspects like order preparation, customer service, employee management, accounting, and more.

You can look for a basic software system or rental apps that incorporate order management, inventory management, invoice generation, payment acceptance, and online booking. Setting up a robust rental app or software system to automate your rental business will enhance the smooth running of your business.

Order Your Inventories

It's usually advisable to start with the resources you already have. Especially for niches like book rental, clothing rental, furniture rental, and property rental (house rental). The idea is to gauge customers' interest and confirm that you're on the right track. It also minimizes risk allowing you to solidify your foundation before diversification.

Subsequently, you can order more inventories as the demand starts coming and you've got to know your customers better. This approach enables you to run your business without stress or hassles.

Promote Your Rental Business Online

Having a good online presence will enable you to reach your target customers faster. You can leverage social media platforms like Facebook, Instagram, LinkedIn, etc., to promote your rental business. It also provides an avenue for you to provide continuous support. Additionally, you need to create a website where people can check out your service and maybe book online.

Take Steps to Ensure Proper Functionality and Protection of Your Inventories

Your inventories are the pillar of your business and must be protected. Remember that you will not keep customers when you don't have functional products to offer them.

You need to take practical steps to ensure that your inventories function properly at all times. Take time to do proper maintenance, fix broken equipment, and ensure to replace spoiled or damaged equipment that cannot be fixed.

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9 Rental Business Ideas

There are a lot of rental niches you can leverage and reap benefits from. Here, we detail nine niches that are good starting points.

Party and Wedding Equipment Rental Business

2020 was a year of canceled birthday parties, office parties, weddings, graduations, and more. With the COVID-19 restriction over people are gearing up to resume social gathering in a big way. For most of these events, many celebrants will consider leasing or renting the party equipment more economical. The reason is that most of the parties happen once in a while, except, of course, you're an A-list celebrity.

From bounce houses for children's parties, dunk tanks for fundraisers, and styled tents for weddings, the cost of equipment can make startup costs high. However, the long-term profit compensates for the initial investment cost. Profitability is also influenced by location. For instance, regarding wedding tents, the average cost of a 30 by 60 wedding tent is $580. In a wealthy neighborhood, you can charge double that price. So you stand to reap unlimited profits if you can make the financial commitment.

A great way to increase your profit potential is by including other necessities for an outdoor event, from caterers/bartenders to portable toilets. Of course, this is in addition to ensuring you have all the necessary party supplies.

Camping Equipment and Tent Rental Business

Camping is a fun and exhilarating way of escaping the hustle and bustle of modern life and connecting back to nature. With the pandemic almost over, campers have an excellent enthusiasm to get back to doing what they love.

You can leverage the fact that most campers do not have all the requisite equipment needed for a memorable camping experience. The essential pieces of camping equipment you need to have in your inventory to get started are backpacking and camping tents, sleeping gears, warm blankets, camping stoves, to name a few. You can further bolster your profit by incorporating hunting equipment rentals. If you have a truck, you can deliver on order and charge separately for it.

Vehicle Rental Business

Vehicle rental business is a broad aspect encompassing:

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  • Car Rental (Usual & Luxury)
  • Bicycle Rental
  • Boat Rental/Jet Ski/ATV Rental
  • Commute Bus Rental/Party Bus Rental
  • Electric Scooters/e-Bike Rental
  • RV Rental/Boat House Rental
  • Truck Rental
  • Private Jet/Helicopter Rental.

Car rental: This is the most popular and cost-effective vehicle rental business idea to kickstart. You can quickly get started with just one car and grow from there. You can reap unlimited profits, especially if you're located in the sprawling cities of New York, San Francisco, Austin, and other tech hubs. Additionally, new factory hubs like Arizona are also ideal for the car rental business. People in these locations are willing to rent a car for a duration ranging from a couple of days to a month. According to Glassdoor, you can earn $29,841 per annum on average, depending on your location and commitment.

Bicycle Rental: Bike rental is a great business idea considering the number of cycling lovers waiting to resume cycling. You can quickly kickstart the business if you're located in the bike-friendly states of California, Washington, to name a few. You can quickly kickstart the business. Only a couple of bikes are enough to get you started. Once you can build a strong customer, you can reap great benefits.

RV rental, boat rental, truck rental, and e-scooters rental also have great potential. Luxury car rental and private jet/helicopter rental have huge potential as well, but the startup cost may be more than most people can afford.

Property or House Rental Business

Although startup costs are high, the house rental business is nevertheless the most lucrative rental business when adequately managed. The rental property encompasses office space rental, event center rental, conference room rental, holiday apartment rentals, land rentals, vacation property, and other aspects of real estate. All these are linked to industries poised to witness a post-COVID-19 boom, ranging from tourism to vacation.

For instance, people have started returning to the office. Once traveling fully resumes, the vacation industry will start booming, boosting holiday apartment rentals. You can leverage the Airbnb model to connect easily with customers unless you have a better plan. You can earn between $800 to $1000 per month, depending on location. Before kickstarting your property rental business, inquire about state property law.

Storage Rental Business

Storage rental business involves providing static or mobile storage units where people can store their belongings. The demand for storage space is on the rise as more people seek a secure place to store their possessions, especially when moving. In addition, lifestyle transition, travel, retirement, or marriage are other factors triggering this demand. Therefore, a self-storage rental business is a great rental business idea, especially considering it's inexpensive and easy to set up.

The average cost for setting up a storage unit ranges from $2.75 to $3.25 per gross square foot of the facility. This way, the rental business owner can make as much as $3,000 per month, depending on the unit area and business location.

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Recreational Equipment Rental Business

Recreational activities are necessary means of decompressing and relaxing after work. That's why a recreational equipment rental business is also a great small business idea, especially as work resumes. You can provide equipment for hiking, skydiving, horse-riding, rafting, skiing, kayaking, and so on.

Furniture Rental Business

There are always house owners or offices that need temporary furniture solutions. Therefore, you can help provide value for such people with the furniture rental business and earn a reasonable income. To improve profitability, you should target furniture that can be used for a certain period only. For instance, parents will prefer to rent furniture for their babies since they no longer have to use it again once their baby grows. The furniture rental business is a great niche and requires little startup capital.

Tech Rental Business

Modern technologies are fundamental to the successful running of a business. Almost all businesses today rely on the use of technology gadgets to run smoothly. Conversely, small business owners may find it difficult to purchase all the gadgets needed to run their businesses and may seek to rent those gadgets pending when they can get their own.

Starting a tech rental business is an ideal solution to this problem. You can rent out gadgets like computers, mobiles, tablets, servers, accessories, etc. With quality service, you will retain your customers and ensure they always come back when they need your service again. What's more, you can incorporate office equipment rental services to increase your profit potential.

Tools and Construction Equipment Rental Business

The construction equipment market is projected to reach $145.22 billion by 2026. The reason is due to the growing need among firms to reduce organizational complexity and cost. Equipment that can be rented ranges from heavy equipment like bulldozers, cranes, or backhoes to light equipment like a lawnmower, forklift, or pressure washer.

Post pandemic economic recovery will see a spike in construction activities, especially as the US Congress is poised to pass an infrastructural bill. This means heavy equipment will be high in demand. The startup cost is very high, and so is the profit margin.

Stay on Top of Your Business Finances With Skynova

Trying to manage your finances while handling other aspects of your rental business can be overwhelming. However, the good news is you don't have to do that. With Skynova's accounting software, you can stay on top of your business.

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Our software helps you keep track of your business finances, generate business transaction statements as well as invoices. You can then focus on other aspects of your rental business.

Notice to the Reader

The content in this article details the rental business opportunities you can leverage to earn good money. It may not be ideal in your specific situation, so always seek expert opinion.


What are the most rented things? ›

So, without further ado, let's get stuck into what the most rented items of 2022 have been so far!
  • Bikes. ...
  • Party equipment and inflatables. ...
  • Camping and hiking equipment. ...
  • Tools and Construction Equipment. ...
  • Suits and Wedding Dresses. ...
  • Water sports equipment. ...
  • Winter sports equipment. ...
  • Toys and baby equipment.
27 Jul 2021

What tools get rented the most? ›

The construction industry is on the rise, making now a great time to open an industrial tool rental business.
The Most Rented Construction Equipment
  1. Scaffolding Rental. ...
  2. Forklift Rental. ...
  3. Trencher Rental. ...
  4. Lift Rental. ...
  5. Scissor Lift Rental. ...
  6. Auger Rental. ...
  7. Mini-Excavator Rental. ...
  8. Excavator Rental.
26 Jan 2022

What all things can be rented? ›

Things You Can Rent Out For Money
  • Storage. You live in a huge house and don't have anything to store in your basement and/or own a storage unit somewhere in the city but never use it. ...
  • RV. ...
  • Kitchen. ...
  • Space for Pets. ...
  • Car. ...
  • Empty Room/Home. ...
  • Wedding Gown & Suit. ...
  • Party Tent.
16 Sept 2019

Where is rental demand highest? ›

The most expensive rental market in the US remains to be New York. The average monthly rent for a one-bedroom is roughly $3,260. This is about a $500 decrease from 2021, however as demand continues to increase prices are likely to follow.

What are the 5 most profitable businesses? ›

Most Profitable Business Ideas
  1. Business Consulting. If you're an expert in your industry and have been working at it for years, you should consider consulting. ...
  2. IT Support, Technology Consulting, and Repair. ...
  3. Cleaning Services. ...
  4. Accounting and Tax Preparation. ...
  5. Auto Repair. ...
  6. Real Estate.

How can I attract more renters? ›

12 Apartment Showing Tips to Attract Quality Tenants
  1. Write a Thorough Listing. ...
  2. Schedule Individual Property Showings. ...
  3. Consider Timing. ...
  4. Have All Relevant Paperwork Handy. ...
  5. Create Handouts. ...
  6. Know All Area Amenities. ...
  7. Decide on Tenant Criteria Beforehand. ...
  8. Keep a Flexible Schedule.
7 Feb 2022

What is the most common type of rental? ›

Fixed-term lease

This is probably the most common type of residential lease, and guarantees your tenancy (and your monthly rental cost) for a set period of time—for example, six months, a year, or two years.

What month is rent the highest? ›

Rental rates also tend to be higher during the summer months. The lowest rental rates are found during the winter months—October through April—with demand and prices reaching their nadir between January and March. An apartment search should begin in the middle of the month prior to the target move month.

How do you brighten up a rental? ›

Here are four top tips or ways to brighten a rental.
  1. Add Lighting. The easiest way to brighten up a space is to combat darkness with light. ...
  2. Use Light Furniture. ...
  3. Add Colorful Accents. ...
  4. Decorate with Glass and Mirrors.
27 Mar 2019

What piece of heavy equipment makes the most money? ›

Crane and backhoe heavy equipment operators typically make the most money. The national average salary for all heavy equipment operators is around $35,000 to $40,000 in a year. This equals about $15 to $20 an hour for an hourly wage.

How do you maximize rental profits? ›

5 Ways To Make More Money From Rental Properties
  1. Rent Out Fully Furnished Apartments and Rooms. ...
  2. Offer Additional Storage Space. ...
  3. Minimize Resident Turnover. ...
  4. Offer Additional Services and Amenities. ...
  5. Reinvest Your Rental Income Into More Rental Properties.
8 Oct 2021

What a landlord must provide? ›

Your landlord has to do anything your tenancy agreement says they have to do. Your landlord is also generally responsible for keeping in repair: the structure and exterior of your home, for example, the walls, roof, foundations, drains, guttering and external pipes, windows and external doors.

What are must haves for a rental property? ›

Your Landlord Checklist for Renting Out a House
  • What Should My Checklist Consist Of? ...
  • Make Sure You Have Permission To Rent Out The Property. ...
  • Find Out About Housing Licensing. ...
  • Arrange An EPC Inspection. ...
  • Gas Safety. ...
  • Electrical Safety. ...
  • Smoke And Carbon Monoxide Alarms. ...
  • Fire Safety & Furniture.
7 Nov 2022

Is rental property a good investment in 2022? ›

2022 is a balanced year for housing supply and demand. This is ideal for retail purchasers and rental property investors. No longer a “seller's” market. Rising interest rates raise the monthly mortgage payment, which reduces homebuyers and lowers property values.

Who are most likely to rent? ›

Renter Demographics. In the under-35 age group, 65% of American households are rented. Meanwhile, in the 65+ age group (senior citizens), 79.3% own a home. The median age of homebuyers is 47 years old, while the median age of renters is 38 years old.

What is the hottest rental market in the US? ›

Best Rental Markets In 2022
  • Boise, Idaho.
  • Tampa Bay, Florida.
  • Seattle, Washington.
  • Salt Lake City, Utah.
  • Providence, Rhode Island.
  • Dallas, Texas.
  • Orlando, Florida.
  • Austin, Texas.

What businesses are in high demand right now? ›

If you're ready to take on entrepreneurship but don't know where to start, here are 14 business ideas to consider.
  • Social Media Consulting. ...
  • Senior Care Services. ...
  • Smart Product Development. ...
  • Organic Beauty Products. ...
  • Healthy Fast Food. ...
  • Healthcare Consulting. ...
  • Crowdfunding Consulting. ...
  • Wheelchair Repair.

How do I find a tenant? ›

How to find the right tenant
  1. Online classifieds. Using online classifieds services to find the right tenant can also be a little tumultuous. ...
  2. Letting agent. Hiring a letting agent could solve all your problems, but finding the right person may take you a few tries. ...
  3. Screening potential tenants.
18 Mar 2019

How do I market my tenants? ›

10 Ways to Find a Good Renter
  1. Use a Property Manager. The most hands-off way to find tenants is to use a local property manager. ...
  2. Hold an Open House. ...
  3. Harness Word of Mouth Marketing. ...
  4. United Dwelling Rental Services. ...
  5. Rental Listing Portals. ...
  6. Put Up a “For Rent” Sign. ...
  7. Set Up a Property Website. ...
  8. Leverage Social Media.
24 Nov 2021

What makes a rental property attractive? ›

The better your property looks, the more it will appeal to potential renters. This is where staging comes into play. Look for ways to properly style your rental property. Ideas include affordable artwork, area rugs, toss pillows and throws, as well as accessories such as vases, coffee table books and blooms.

What are the top 10 features you would need to have in a rental property? ›

The Top 10 Features Requested by Home Renters
  • Storage. ...
  • Outdoor space. ...
  • Office space. ...
  • Noise insulation. ...
  • Heat insulation. ...
  • Ceiling fans, central air, etc. ...
  • Carpet-free spaces. ...
  • Kitchen counter space.
18 Sept 2020

What type of tenants are best? ›

Finding tenants who act respectfully to both landlord and neighbors is crucial. A respectful tenant will inform you of maintenance issues, and take care to handle their own responsibilities while living in your rental property. Respectful tenants are more likely to: Pay rent on time.

What is the best month to list rental property? ›

January - March. This is not the busiest time of the year for investors, but people still start looking for new homes soon after the holiday season. You can take advantage of that and perhaps even find the client who is willing to move during winter.

What time of year are most rentals available? ›

Peak rental season occurs when there are the most renters looking for rental properties. This happens in the summer, specifically May to August. There are a handful of reasons why peak rental season occurs in the summer months: It's harder to move during the winter.

What day of the week is rent the cheapest? ›

The day of the week

If you want to rent from the hottest complex in town, be strategic about the day you apply. If you want the best deal, apply for your apartment on Monday or Friday. If you apply on Tuesday or Sunday, you might pay more.

How do I make my rent feel homely? ›

10 tips to make your rental feel like home
  1. Add lots of plants. Greenery can bring so much life to a room. ...
  2. Invest in furniture that has added storage. We always need more space. ...
  3. Rugs. ...
  4. Mood lighting. ...
  5. Free standing furniture. ...
  6. Pick your favourite bedding. ...
  7. Decorate your existing furniture. ...
  8. Invest in quality furniture.
23 Mar 2020

What is the hardest piece of equipment to run? ›

Generally, out of all the heavy equipment, motor graders are perceived to be the most difficult vehicles to drive.

What equipment operators earn the most? ›

High Paying Heavy Equipment Operator Jobs
  • Crane Operator. Salary range: $37,500-$62,500 per year. ...
  • Yard Manager. Salary range: $34,000-$57,500 per year. ...
  • Winch Truck Driver. Salary range: $50,000-$57,000 per year. ...
  • Backhoe Operator. ...
  • Rigger. ...
  • Construction Equipment Operator. ...
  • Motor Grader Operator. ...
  • Front Load Driver.

What state do heavy equipment operators make the most money? ›

New Jersey

How many rental properties do you need to become a millionaire? ›

To become a real estate millionaire, you may have to own at least ten properties. If this is your goal, you need to accumulate rental properties with a total value of at least a million.

What is the 2% rule in real estate? ›

The 2% rule states that the monthly rent for an investment property should be equal to or no less than 2% of the purchase price. Here's an example of the 2% rule for a home with the purchase price of $150,000: $150,000 x 0.02 = $3,000.

Will rentals make you rich? ›

The truth of the matter is this – one rental property isn't going to make you rich. If you get an average of $100 per door per month in cashflow from a rental property, investing in a duplex will only net you $2,400 a year. Three of these net you $7,200 a year.

What do landlords care most about? ›

Landlords want tenants who pay rent on time, respect property and don't cause trouble. When it comes to finding a renter, landlords look for information that will help them determine whether prospective tenants fit these criteria.

What are the new rules for rental property? ›

Everything Landlords Need to Know in 2022
  • The end of no-fault evictions. ...
  • Lifetime deposits. ...
  • The landlord database. ...
  • Making Tax Digital. ...
  • Certificates of guardianship. ...
  • Pet insurance. ...
  • No automatic right to keep a pet. ...
  • Landlord exemption.
20 Jan 2022

How do I avoid paying tax on rental income? ›

Tips on How to Reduce Tax on Rental Income
  1. Recent tax changes for landlords.
  2. Claiming all expenses.
  3. Creating Joint Ownership.
  4. Form a limited company.
  5. Reducing through Extending.
  6. Short-term Tenants.
  7. Utilizing all available tax-bands.
  8. Utilize mortgage interest by changing to an offset buy-to-let mortgage.
4 Jul 2022

What type of house is best for rental property? ›

The best investment property for beginners is generally a single-family dwelling or a condominium. Condos are low maintenance because the condo association takes care of external repairs, leaving you to worry about the interior.

What are the 3 types of property? ›

In economics and political economy, there are three broad forms of property: private property, public property, and collective property (also called cooperative property).

What are the three types of rent? ›

Different Types of Rent:
  • Economic Rent: Economic rent refers to the payment made for the use of land alone. ...
  • Gross Rent: Gross rent is the rent which is paid for the services of land and the capital invested on it.
  • Scarcity Rent: ...
  • Differential Rent: ...
  • Contract Rent:
24 Mar 2022

What are the three types of tenants? ›

Different Types of Tenancy
  • Fixed-term tenancies.
  • Periodic tenancies.
  • Boarding house tenancies.
  • Service tenancies.

What real estate business is most profitable? ›

Here are some of the top real estate business ideas that you can use to tap into this lucrative market.
  • Become a landlord.
  • Flip property.
  • Manage property.
  • Bird-dogging.
  • Real estate photography.
  • Become a real estate agent.
  • Combine real estate business ideas.
2 Oct 2019

What sector of real estate is the most profitable? ›

Commercial Real Estate

A commercial space is definitely one of the most profitable types of real estate investment. There are many types of commercial spaces, including industrial, retail, office, and even parking spaces. Investing in a commercial space is generally expected to yield a high return on investment.

What is a good profit on rental property? ›

How much profit can you generate from a rental property? The exact amount of profit a rental property generates depends on a multitude of factors, most notably your expenses. While any profit is good, you should aim for making at least $100 profit per property. This amount of income might not seem like much at first.

Is owning rental property profitable? ›

If you have your financial house in order, especially as interest rates climb, rental properties can be a good long-term investment, Meyer says. A rental property should generate income monthly, even if it's just a few dollars at first.

What type of business should I open for real estate? ›

10 Small Businesses to Start in Real Estate
  • House flipping. ...
  • Real estate brokerage. ...
  • Property management. ...
  • Real estate appraisal. ...
  • Real estate photography. ...
  • Short-term rental business. ...
  • Real estate app development. ...
  • Real estate wholesaling.
26 Jul 2021

What is the most lucrative way to make money in real estate? ›

The most common way to make money in real estate is through appreciation—an increase in the property's value that is realized when you sell. Location, development, and improvements are the primary ways that residential and commercial real estate can appreciate in value.

How do I get rich in the real estate industry? ›

10 Ways To Make Money In Real Estate And Get Rich
  1. Making Money in Real Estate by Renting Out Property. ...
  2. Interest-Based Income Through Investing in Mortgage Notes. ...
  3. Getting Rich By Flipping Real Estate. ...
  4. Making Money Through Real Estate Investment Trusts. ...
  5. Making Money Through Real Estate ETFs and Mutual Funds.
23 Nov 2022

What type of real estate has best returns? ›

One reason commercial properties are considered one of the best types of real estate investments is the potential for higher cash flow. Investors who opt for commercial properties may find they represent higher income potential, longer leases, and lower vacancy rates than other forms of real estate.

How do you maximize rental income? ›

Here are seven tips to maximise your rental income that will allow you to offer a better service to tenants while improving your rental yield.
  1. Ensure the property has been thoroughly cleaned before placing on the market. ...
  2. Provide furniture. ...
  3. Carry out repairs quickly and to a suitable level.

Where is real estate growing the fastest? ›

The 18 Hottest Housing Markets In The US
City/StateMedian Selling PriceState House Price Index Increase (Q4 2020 – Q4 2021)
Bakersfield, California$365,00019.08%
Aurora, Colorado$440,75119.71%
Jacksonville, Florida$270,02324.47%
Charlotte, North Carolina$354,88420.70%
14 more rows
21 May 2022

What is the 50% rule in real estate? ›

The 50% rule in real estate says that investors should expect a property's operating expenses to be roughly 50% of its gross income. This is useful for estimating potential cash flow from a rental property, but it's not always foolproof.

Do you pay tax on rental income or profit? ›

As a landlord, you pay tax on your net rental income, which means your total income minus any allowable expenses. HMRC will view multiple properties as one business and work out your tax bill accordingly.

What is the best passive income? ›

10 Ideas to Earn Passive Income and Build Wealth
  1. Dividend stocks. ...
  2. Dividend index funds and exchange-traded funds. ...
  3. Bonds and bond index funds. ...
  4. High-yield savings accounts. ...
  5. Rental properties. ...
  6. Peer-to-peer lending. ...
  7. Private equity. ...
  8. Content.
31 Oct 2022


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