Some landlords prefer a multi-family property, usually in the form of an apartment building that can house several tenants at the same time. When you think about it, it can work to their advantage. More tenants mean the bigger the profit. It also means that you can monitor and maintain their needs in a single location. But what about those single-family rentals? Is it advisable to own one?

Single-family rental properties are those units that can house only…well, one family/group at a time. Some landlords prefer to own these properties. Are you thinking of purchasing one? Let me give you a list of the pros and cons of renting out a single-family rental property to help you make a more calculated decision.

Pros:

a. There could be fewer expenses for you because these tenants tend to take care of the maintenance themselves. Unlike in multi-family rentals, the common areas are the landlord’s responsibility to maintain.

b. The tenants for these properties will most likely want to feel like the house is theirs and will want to buy their furniture and appliances.

c. Tenants in single-family rentals are more settled and they tend to stay for a long period. They would want their kids to also be settled in and go to stay in the same school. This means that you will have a steady profit for a couple of years and do not have to constantly go through the entire process of filling in a vacancy. No landlord would want to go through the screenings, property viewings, and going back to square one several times a year.

d. If you plan to sell the property eventually, you can sell it at a retail price and it is easier to look for a buyer. With multi-unit properties, you have to look for an investor that will probably use it for the same purpose.

e. If you have a multiple-unit property, you have to pay more taxes than what you will for a single-family rental property.

Cons:

a. If you have a vacant single-unit property, there is a higher chance that it will be a victim of theft and vandalism because no one will be there to look after it. With an apartment building, there is always someone around that will probably scare off any criminals.

b. Once the tenants move out, the property does not generate profit anymore. You now have to find a replacement as soon as possible for the income to come back.

But don’t worry. Landlords can begin looking for new tenants before a lease ends to avoid a long vacancy. You can start early by creating your property listing at Padleads first, then just syndicate the listing to other rental websites. By the time the previous tenants leave, you will have a list of interested applicants ready to be screened.

c. If you have several single-family rentals, it means you also have several things to take care of. Maintenance, repairs, and inspections are also more challenging to do because your rentals will be in different locations.

d. It also does not help you if your rental homes are located far from one another. It can be a bit of a hassle trying to manage it all. There will be instances that you have to be in two properties or more in one day.

Was this helpful? I hope I didn’t put you off in getting a single-family rental property. There are advantages to it and, like multi-unit properties, disadvantages as well. The key to making the decisions is knowing what you are able and willing to do as a landlord.