Micro Real Estate

Passive Income Ideas in 2022 from Micro-Properties

Passive Income Ideas in 2022

What are Passive Income Ideas Like Vending Machines?

There are several options for passive income ideas like vending machines on Micro-Real Estate, including electric vehicle chargers, vending machines, solar panels and arrays, shipping container farms, digital out of home (DOOH) advertising, 5G nodes, ATMs (including Crypto), and helium hotspots.

Even just over the past 6 months, we’ve added sections for “spots” – parking spots, RV Pads, boat slips, and somewhat tangentially related – ghost kitchens.

Passive income ideas in 2022 are looking bright, especially with all of the potential combinations of hardware and variations of machines (ever hear of an art vending machine?)

The vending machine market is certainly the largest market under the umbrella of micro real estate, but electric vehicle chargers are seeing heavy investment by both industry and government. As the percentage of electric vehicles on the road increases over the coming years, the number of chargers in business parking lots is going to drastically increase.

Think about a 300 room hotel. Now, they probably have between 5 and 10 Level 2 EV chargers, but the EV adoption rate is still well under 10% (fewer than 10% of cars on the road are EVs). So, as the EV adoption rate increases, that hotel is going to need more and more EV chargers, possibly one for every room in 10-15 years from now.

Other Semi-Passive Income

Passive Income Ideas in 2022 probably won’t change much from 2021, except for a few new ideas involving Micro-Properties (small properties for things like EV chargers and Vending Machines). Vending machines have been a mainstay of the passive income niche for several years, (and rightfully so, they were a $36.5 Billion market in the U.S. in 2021) since they are relatively low maintenance and can be used for way more than just drinks and snacks.

The industry is likely to continue to grow in 2022, especially due to the uptick in Coronavirus cases and the Omicron Variant. In 2020 and 2021 many retail and fast food chains decided to reduce their workforce and use kiosks. Vending machines fall into a similar no-human-contact sales situation, so they will also likely increase in number as people continue to shy away from human contact. This will likely result in even more passive income ideas in 2022, and of course, the execution of those ideas into businesses.

Micro CRE

The opposite side of owning a vending machine is owning the micro-real estate (a.k.a. a micro-property) that the vending machine sits on. Typically, this means owning a piece of commercial real estate and then selecting high foot traffic areas that can be leased to a vending machine proprietor.

Upon leasing the micro-property, the commercial real estate owner can ask for a reasonable cut of the sales of the vending machines or a fixed fee (rent) on a monthly or yearly basis. This is a way for the commercial property owner to generate more income from their property, sometimes called ancillary income.

The contract will need to be directly between the owner of the micro-property and the owner of the vending machine. And don’t forget to budget for vending machine insurance.

This type of passive income model can both increase revenue from existing commercial real estate with micro-property leases, and create revenue from owning revenue generating machines (like vending machines) or other hardware (electric vehicle chargers).

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