Have your heart set on investment property management? There are residential, commercial, industrial, and land properties that you can invest in. If you already decided to go to the residential route, you have more choices to make. Will you invest in single-family residences or multifamily residences?
Having options is seldom a bad thing and investment property management is no different. It might take you a little while to get started, but things move smoothly later on.
Single-family homes are more attractive to a lot of potential renters. A lot of people prefer to live alone rather than to occupy one of many units. This is its greatest perk. As an investor in a single-family residence, finding tenants to occupy your property will be relatively easier.
Since you’ll only have one family to deal with, taking care of their needs will be simpler as opposed to the needs of several families. Maintenance will also be easier as you only have a single property to manage and maintain.
It’s not all perfect with a single-family residence though. If your property is unoccupied for some time, you won’t have any source of income. Tenants leaving will put you in a very difficult position where you’ll have to rush to replace them to maintain a profit. Even if you manage to keep the same tenants for long periods, the income will be less than that of several families in several units.
At the other end of the spectrum are multifamily residences. These are units that can be rented out to different families or groups of people. The best thing about them is that their profits are higher compared to those of single-family residences.
It’s also highly unlikely that you’ll be left with empty units. As long as a couple of them are occupied, there will be income. You can take your time selecting new tenants when old ones leave as the units still occupied are bringing in money, so there’s no rush.
Maintenance isn’t that much of a burden either. You have all of your tenants under the same roof. Yes, the consumption of utilities and facilities will be higher than that of a single-family residence, but the difference isn’t massive.
Poor maintenance, however, could be disastrous. If something is seriously broken, it should be replaced as soon as possible. Naturally, this could end up being expensive. Additionally, a troublesome renter can make your life extremely difficult. This is particularly true if they get other renters involved with their behavior. The best way to keep this from happening is to screen all tenants carefully and meticulously.