5 New Factors That Can Help Homeowners Choose Whether To Buy A Rental House Or An Apartment
What Is Better: A Rental House Or Apartment?
In most real estate markets today, you can get either a rental house or apartment, but is there a reason why one might be better than another? Five new factors that can help homeowners choose whether to buy a rental house or an apartment. NSH Mortgage has the knowledge and tools to help you in choosing whether to buy a rental house or an apartment.
Figures from the National Multifamily Housing Council show that among renters, 43% live in single family homes, 17% in small rental properties with two to four units, 5% in mobile homes, and 35% in larger apartment properties with five or more units. There are big differences between rental houses and apartments, differences which can significantly impact your economics and quality of life.
Larger Complexes Vs Individual Homeowners
Large apartment properties are likely to have a professional management. This means there is a representative of the landlord on the property, often someone who actually lives there. Their role is to acquire tenants, make sure that required services are provided, and collect the rent.
Alternatively, single family rental houses are often self managed, not by the owner but by the tenant. The lease will spell out who is responsible for what, and this can be a very good deal for renters. Essentially, this is a situation in which the owner says, “Let is make a trade. You live here, you take care of the place, and I will keep the rent at a reasonable level.”
In such situations, what owners are really saying is that if you self manage, there is no need to pay the rental manager. The result is a lower cost for the owner, and thus a greater ability to hold down the rent. There is a mutual interest both parties have in keeping the deal going.
Rental House Or Apartment: Pets
There are tens of millions of dogs and cats beloved by their owners. But, alas, for landlords, pets can present problems. Landlords may have some difficulty getting homeowners insurance for rental units if certain dog breeds are on the property. Single family landlords may be more open to pets than large apartment complexes because they can adjust lease requirements to individual properties.
A large apartment complex is likely to have more amenities than single family homes, whether owner occupied or rented. No doubt amenities are nice because they increase opportunities to socialize and make friends. That said, there are single family homes with pools, especially in warm weather areas, and having a private pool is certainly a luxury.
If you like privacy, single family rental houses are the way to go. There is no one at the front desk, there are no cameras in the hallways, no passes for parking areas, and there is no mail room to share. Single family homes provide separation and distance. There are no strange cooking smells and no loud arguments involving other people. Finding a mortgage for an unapproved condo.
By their nature, houses tend to have more space than apartment units. This happens because stairs, laundry areas, and HVAC systems are often outside apartments but within single family homes. Apartments with single bedrooms are common while stand alone houses routinely have three bedrooms. RentCafe reports that apartments built in 2016 typically had 934 ft². On average, units built today are 8% smaller than apartments constructed in 2010. In late 2017, the average new home had 2,571 ft²; of floor space, down from 2,736 ft²; at the start of 2015.
Rental House Or Apartment Versus Buying
If your real interest is not to rent at all, single family homes may have a hidden attraction. About a quarter of all single family homes are now owned by investors. Whether the owner is a single investor or a massive hedge fund, you have to figure that most have an end game which includes the sale of the property. As a tenant with a good payment history, you might find that some owners are willing to sell to a qualified buyer with a lease option or by carrying the loan for a year or two, enough time for you to put yourself in position to be approved for a mortgage, while getting into a home before prices rise.