Forget buy to let! A share I’d buy to profit from the rental boom


first_img Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Christopher Ruane | Monday, 23rd November, 2020 | More on: GRI See all posts by Christopher Ruane chris231 has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Simply click below to discover how you can take advantage of this. I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Image source: Getty Images Forget buy to let! A share I’d buy to profit from the rental boomcenter_img Our 6 ‘Best Buys Now’ Shares “This Stock Could Be Like Buying Amazon in 1997” Buy to let is a popular way to earn some extra income. As well as regular income, a lot of properties also increase in value over time. But owning and renting a property can involve a lot of hassle. From agency fees to repair costs, even buying a cheap property to rent out can involve additional expenses.I like the idea of owning and renting property to earn some extra cash each month. But I don’t want the hassle of buy to let. That is why buying shares in companies that rent properties is so attractive to me. That way, I can benefit from property rentals without needing to do it myself.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Why I’d pick Britain’s leading listed residential landlordA lot of property companies are listed on the stock market. But many focus on office buildings or shopping centres. The pandemic has shown that falls in demand can affect these types of properties. Whatever happens with the pandemic, though, people will need a place to live. That is why I would be looking for a landlord of residential properties.The biggest listed residential landlord is Grainger (LSE: GRI). The size alone attracts my interest. I think larger residential landlords with diversified portfolios benefit from less exposure to problems in any one geographical area.Grainger’s size is only one part of its appeal for me, however. I also like the fact that it consistently rents its properties and collect payments on time. One of the difficulties in owning a buy-to-let property can be finding reliable tenants, or getting tenants to pay their rent when the economy is weak. Grainger recently revealed in its annual results that its average occupancy level was 95% and it managed 97% average rent collection. I find those high occupancy and rental collection rates reassuring.To me, Grainger is better than buy to letAnother reason I like Grainger is that the company has ambitious growth plans. Its existing portfolio should keep on earning money for decades. But the company also has a number of large newbuild projects underway. The company expects its ‘private rented sector’ building stock – homes it builds to let – will double in the coming five years.One of the attractions of buy to let is that as an investor, an increase in house prices could lead to capital gains. As Grainger expands its portfolio, I expect that any long-term movement in property values will also be reflected in its share price. But unlike getting involved in property management myself, I can benefit from a housing market improvement without needing to worry about mortgage repayments or negative equity.Renting out property isn’t always as easy as it seems, especially when things go wrong. I would rather leave it to the professionals, such as Grainger. Doing that, I can benefit from the home rental market without the hassles of getting involved myself. Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Enter Your Email Addresslast_img read more