Why are so many landlords exchanging into DSTs, and what is a DST, anyway?
 

Simple, it gives them the opportunity to retire from their rentals and say goodbye to Tenants, Toilets, and Turnovers forever while converting their equities into passive income for the rest of their lives.

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A Delaware Statutory Trust (DST) is a legally recognized, passive real estate investment vehicle that allows multiple investors to own fractional, undivided interests in high-quality investment properties. They might include apartment complexes, warehouses, public storage facilities, retirement communities, and many others.  They offer a way for investors to own institutional-quality real estate while eliminating the burdens of active management. Instead of dealing with tenants, maintenance, and day-to-day operations, you become a passive investor while still enjoying the benefits of real estate ownership. Your only responsibility will be managing the monthly income.​

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These days, DSTs are commonly used as replacement properties in a 1031 Exchange, making them an ideal solution for landlords looking to step away from active management. ​

 

One of the biggest advantages of DSTs is the potential for steady, passive income and many Bay Area investors find that they can dramatically increase their cash flow compared to their local rentals—without any of the stress.

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For those nearing retirement or looking to simplify their lives, DSTs represent a practical and efficient transition from active property management to passive ownership, all while gaining the usual advantages of real estate ownership: Appreciation, Tax Write Offs and Cash Flow.