Why Single-Family Homes Can Make Great Rental Properties
When you think of buying rental properties, you probably first think of buying duplexes or multiplexes. Indeed, this approach works for a lot of property owners. However, there are some real advantages to buying single-family homes as rental properties. Take a look.
Your renters are likely to stay longer.
Think about the type of people who are typically looking to rent a single-family home with its own yard and driveway. Often, these people are a little older, more settled, and have kids. As such, they are more likely to want to stay in their home a bit longer. They are less likely to find a job in a different city or make some other sudden move than the younger renters who often look for duplexes and smaller apartments. Less renter turnover means you don't have to spend as much time interviewing clients, showing the home, and reviewing applications.
You can charge more rent.
Even if the home itself is small, you can charge more rent just because the space stands on its own and has its own yard and driveway (perhaps with a few other amenities.) This may allow you to own and manage fewer properties while bringing in the same amount of income. The fewer tenants you have to deal with and collect from, the better!
There are no shared areas to maintain.
In rental properties with multiple units, the shared areas tend to get messy and run down really quickly. None of the residents care a lot because the space is not entirely theirs. You end up cleaning and maintaining these shared halls and spaces. With a single-family home, the entire space is used by a single renter, so they feel more responsible for taking care of that space. This means less maintenance is needed on your part.
You have more options when you sell.
One day, you may decide that you no longer want to be in the rental business. When that time comes, it is easier to sell a single-family home than to sell a multi-family home. You can market to live-in owners and to rental owners, which widens your buyer base and will hopefully help you find a buyer sooner.
Buying single-family homes as rentals can be a really good idea. With fewer tenants, the ability to charge more, and more options for selling, you are setting yourself up for an easier experience as a landlord. Find a single family home in your area today.
