Multifamily Properties Vs. Single-Family Rentals which is best?

This article comes from https://www.forbes.com/ by Keven Amolsch that discuss's the great debate about Multi and Single Family properties as rentals. I will look at what the article says and share some of my own experiences.

"• No tenant-tenant conflicts: The problem I have run into with owning apartments is that eventually the tenants won’t get along. When this happens, it is common for the landlord to get a call from one of the tenants asking for them to get involved. That is a difficult call to take because there really is not much a landlord can do. When I get a call like that, I will commit to sending a letter to the resident about following the rules in the lease and respecting their neighbors, but outside of that, I cannot do much about small grievances."

Multifamily units need more management and tenants can have issues getting along. I help run 2 properties like that. A 5-6 plex that are in separate parts of the city. One is in a great area and the other not so great. I did help this client purchase in the better area and I am assisting in the not do great area. 

Both complex's are fully rented and you really have to be able to create community and be very careful on tenants you let rent the units. For example just putting the trash cans to the curb is an issue and you have to schedule which tenant will do that or pay to have it done. 

In multi units you have more maintenance and upkeep in the building. A lot of owners have tenants take care of some issues and pay them. No matter what you do it cost money. The better the area and higher the rents usually means better success. 

" • Less maintenance: Apartment tenants tend to be are much harsher on the property than those that live in houses. There is also little to no common area to maintain with single-family homes. If there is, such as in a townhome or condo complex, there should already be an association or manager in place to take care of it. Finally, with single-family homes, it is common to have several owner occupants in the complex, or neighborhood, who care about and take care of the property more than a building full of renters."

Apartment tenants are much harder on properties because they usually pay less rent. In homes the tenant has to maintain the home and yard. The better the neighborhood a home is in the better the tenants. I have noticed that higher rent tenants have better credit and have better jobs. In apartments you have 1 bedroom to 3 bedroom. Unless you are on water or golf course the tenants are a mixed bag. 

"• Single family homes are Easier to manage: This is not always the case — fighting tenants is a good example of when it is not — but overall, having everyone in one location makes managing multiple units easier. In some cases, the building can afford an onsite manager who helps keep it clean, can help show units and meet contractors."

Buying income properties that are in good locations helps make management easier in most cases. Homes that we have leased for clients in good areas have almost no issues. In the last 24 months those homes have been rented and have had no evictions or late payments. Those tenants have jobs and love their neighborhood.

I have helped and purchased over 1000+ properties and the key to success is understanding the asset your are buying.  I like areas that are nice and have a lot of amenities in or around them. We always shock our clients when we get the higher rents. 

A lot of leasing agents go for lower or average rents and that is easy to do. We help our clients get the highest rents through the rehabbing and services we provide. Marketing and getting a property ready is the key to owning and profiting with income property.

We have all the services you will need to get great income properties and top dollar for them. I'm Brett please call 216-703-5740 EXP Realty Ohio and 602-363-6551 EXP Realty Arizona.

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