Are you considering acquiring a new rental property in 2025? As many Americans move to the suburbs, landlords are considering purchasing a single-family rental property in the suburbs.
Like any investment, a suburban rental property’s success will depend on several factors. The following pros and cons can help you determine whether owning a rental property in the suburbs would fit your business.
PROS
Size: On average, properties in the suburbs are larger and less expensive per square foot than houses in the city. Therefore, the same purchase price will give you a larger property in the suburbs, giving you more bang for your buck. Many tenants are looking for more space, especially if they work from home. And a larger property means you can justifiably charge a higher monthly rent.
Stability: A move to the suburbs is typically part of a long-term plan. A family will likely want to stay in their new home for the foreseeable future, especially if it’s in a good school district. Families are also more likely to have multiple sources of income. Reliable rent combined with lower turnover can make a suburban rental property a significant asset to your investment portfolio.
Maintenance: A large driveway or yard might require a conversation about who will be responsible for tasks like lawn mowing or snow removal, but suburban properties also come with some maintenance benefits. Suburbs tend to have less crime than urban areas, so you may be less likely to deal with break-ins or extra security measures. In addition, families who rent a house long-term often care for it as their home, resulting in less damage and wear and tear.
CONS
Demand: While growing numbers of people have moved to the suburbs in recent years, the majority are homeowners. Demand isn’t as consistent for suburban rental properties compared with large cities, especially in neighborhoods that have a lot of turnover. Before investing in a suburban rental property, ensure the community thrives and has sufficient rental interest.
Diversity: Suburbs tend to have fewer options than the many forms of housing found in a city. In addition, suburbs appeal to a limited portion of the population. Your pool of potential tenants probably wouldn’t include groups like college students or young professionals.
Convenience: Suburbs can’t compete with city centers regarding amenities outside the rental property. Restaurants, shops, and entertainment aren’t generally accessible on foot or by public transportation. Employment opportunities typically require a longer commute in a suburban area. Public transportation or walking to work are rarely options.
Whether a rental property in the suburbs is the right investment for you will depend mainly on your budget, investment goals, and target demographic. But if you’re seeking a single-family home to attract long-term renters, the suburbs might be the ideal place to look!
About Rentals America
Rentals America provides full-service property management for residential rental properties. Our team is completely dedicated to property management, and we’re here to help landlords navigate the rental market.
