If managing a large housing complex sounds overwhelming, start small with your property ownership journey by purchasing a single-family home. Once you master owning and managing a single rental property, adding a second property will be a breeze! Many seasoned housing owners have started with one single-family home before they graduated to owning multiple rental homes. Let’s discuss why many landlords choose this tried-and-true method of property ownership.
Lower Risk
Since buying a single-family home usually costs significantly less than purchasing a multi-unit dwelling, the initial investment is more doable for a new property owner. Banks also offer more favorable loans to buyers purchasing individual homes because the smaller loan amount offers them a lower risk.
Increasing Value
Whether you flip the house or keep it as a long-term rental, home values increase steadily. So, if you maintain your property well and want to exit the market at some point, you should be able to make a profit. Plus, single-family homes maintain a steady value and aren’t subject to the adverse effects of inflation.
Dependable Income
Many tenants prefer the comfort of a single-family home, but may lack the funds to purchase their own or do not want the maintenance hassles of home ownership. Given that, these properties can make a great investment and attract stable, long-term renters.
Lower Maintenance Costs
When you attract long-term tenants, they’ll begin to think of your property as their home. And this mindset changes how they’ll care for your property. It will also boost the tenant-landlord relationship because they want to remain in your good graces and continue to call your property home.
Easier Management
Housing only one family per property has its perks. Since your tenants will have the privacy of their homes and no shared common areas, there will be no conflicts with fellow tenants. Renters may also assume lawn care since they’d be able to control their home’s appearance.
Tax Benefits
A single-family home, whether rental or not, entails the same property taxes as any homeowner’s home. On the other hand, more significant properties would carry higher tax rates and be a greater financial burden than a single-family home.
For these reasons, new landlords and cautious investors prefer investing in stand-alone dwellings. The lower personal and financial risks offer a good ownership experience. So, if you want to be in control of your financial future, invest in a single-family home. You’ll find that this investment strategy is a real winner.
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.
