Are you new to Real Estate investing? When it comes to deciding whether you are interested in multifamily or single family rental homes, you may be leaning toward multifamily – for more monthly income opportunity of course. Amidst the economic downtown concerning both single family and multifamily ownership, rentals have actually continued to increase.
In an economic downtown, you not only get more renters, but you get more multifamily renters. Why? Multifamily rentals are often much more affordable for people trying to adhere to a budget or decrease their monthly expenses. There also aren’t as many multifamily homes available as there are single family, which results in a strong demand for renters seeking multifamily leases.
While multifamily property investment may seem like the obvious route to go, here are a few differences in the two that need to be considered.
- Single family renters are more likely to buy a home someday, or may be in the process of saving money.
- Single family renters for the abovementioned reason may be interested in shorter lease terms.
- Single family renters generally make more income.
- Single family renters consist of more “families” – Larger households, often have kids.
- Single family renters tend to better understand or expect rent increases.
- Single family homes are generally less upkeep for the investor/owner.
- Multifamily renters generally lower income.
- Multifamily properties tend to be in “high crime” areas.
- Multifamily means multiple personality types on the same property. Just like an apartment complex or condo, you have to worry about shared areas and conflict amongst tenants.
- Multifamily renters often rely on rent to stay the same low rate.
- Multifamily renters may not be planning on owning a home in the near future and may look at long-term rental options as attractive.
- Multifamily properties are generally more upkeep for the investor/owner.
All renters in general tend to be younger (than owners), have less money in savings, and may be concerned about losing their jobs… which are all reasons they avoid committing to an investment/home of their own. So, what does this all mean to you? And which investment should you lean towards?
If you partner up with a company like us, the property management associated with a duplex or multi-family home should not intimidate you. We work together to provide top-notch property management and maintenance for the entire time you own your investment.
To meet with an account manager in Tampa, or to discuss which type of property investment is right for you, please contact us today. You can also fill out an investor profile to save yourself some time.
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