When we talk about investments, rental property is one of the best vehicles going today – even during the Pandemic period. Investors still find rental property a huge potential for high rewards and has a relatively low risk record, no matter what the current real estate market is at large. It comes in all shapes and sizes and can be found anywhere, so who would not want to boost investment through renting out a space?
If you’re looking to purchase a rental property, you have plenty to choose from such as apartments, condos, townhouses, semi- detached houses, detached houses, student housing apartments etc.
There’s a long list of it, however, some types of rental properties can be better for investors than others. In this article, let us show you the different types of rental properties that can help you find and make the best investment option for you.
TYPES OF RENTAL PROPERTIES
When you’re looking for rental property to invest in there are a lot of different types to choose from. The most common types of rental properties include:
- Single-family houses that are detached from neighboring properties
- Condominiums and cooperatives that are privately owned units in a multi-tenant building
- Luxury property targeted toward the high-end renter
- Vacation homes for short-term stays such as Airbnb or VRBO
- Townhomes or row houses that share a connecting wall, entryway, or front yard
- Small multifamily buildings such as a duplex, triplex, or fourplex
- Apartment buildings built as a walk-up, low-rise, mid-rise, or high-rise
These types can also have sub-types. Single-family houses can be suitable for workforce tenants, apartments situated in ground floors can have lawn areas or small gardens, or even be converted to a penthouse unit with countless amenities, and condominiums can upgrade its space, designing it to loft type or studio units.
MOST COMMON TYPES OF RENTAL PROPERTIES
Multifamily apartments/ condos
Owning not one but more apartments in the same building may help you pay less on management costs. However, HOA fees can be high. Apartment demands are so strong that you can still get a good rent price on a grade b unit, perhaps that’s the main reason why you’ll be charged more by HOA.
- Multifamily units can give you better cash flow.
- It’s also cost efficient since you can buy 2 apartments at the price of one house.
- Less risk of vacancies since lower priced units are of interest to a larger pool of renters.
- HOA fees
- Involves more tenants, more issues, more problems.
If you’re quite hesitant because you’ll have to deal with a lot of tenants since you’re opting for multi-family homes, sign up for a full service property management. By entrusting your properties with the most trusted property management firm like APG Properties, all the hassle that involves managing your property will definitely be omitted off your plate. From tenant screening, maintenance and repairs, rent collection to eviction, they’ll do it all on your behalf – of course it’ll make you control and enjoy your time then let the passive income flow on your end.
Depending on the market you’re investing in, millennials and families may be willing to pay a higher rent for a single-family house because they see the property as a home that they can live in for several years compared to a small, cramped apartment.
- Single-family houses are detached houses.
- Insatiable demand. The price growth isn’t ending since the price to rent appreciation is high.
- Manage one tenant usually.
- More liquid investment and easier to sell.
- Difficult to create ROI from an expensive home in CA.
Different types of rental properties also have their own unique benefits and drawbacks. There are also significant differences in the construction and size, cost of ownership and property management, and the investment and exit strategy among the various types of rental property. If you’re planning to invest into Single Family houses but no one’s to manage or not sure about the processes, APG Properties single family management can surely be an aid for you. With their thousands of hours of experience, you’ll get to have your property be managed in less hassle, plus generate more profitable income from your investments.