Are you a landlord or property manager torn between apartment or home rental management? We understand that property rental management is an overwhelming job. For that reason, many investors usually specialize in one type versus the other.
Managing property rentals can be challenging. However, we are here to give relevant information to help you provide your tenants with the best property management experience. ExactEstate is the industry leader in simplifying your life by streamlining property management and increasing profitability.
If you are managing house rentals and apartment rentals, there are key differences you need to understand. The following article will discuss various distinctions that may help focus your efforts, no matter your property type.
What Are House or Home Rentals?
Before we dig deeper, let’s understand each type of rental property.
House rentals are single-family homes available for rent to tenants. These properties are often more spacious than apartments, with plenty of room to stretch out and relax. A single-family home also has its yard, meaning occupants don't have to share outdoor space with other tenants.
House rentals are often ideal for families who prefer more privacy and space than apartments. In the United States, 41% of renters occupy single-family housing units.
In most cases, landlords, or the owner, manages a house for rent. However, you may employ a manager if you have multiple units. The best thing is that managing a house rental is often more flexible. Hence, you will have more control over who lives on your property and what they do there.
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As opposed to a house, an apartment has a limited floor area. In some cases, it might be a single-family house divided into multiple units or a studio or one-bedroom unit within an apartment building. Though smaller, an apartment still has all the amenities you would expect in a home: a kitchen, bathroom, bedrooms, and living area. However, tenants have shared common areas, such as swimming pools and gyms.
Typically, apartments are one of the most popular types of housing in urban areas. 37% of renters live in apartments across the United States.
Apartment complexes usually employ a staff to oversee or manage the whole complex. As a manager, you are responsible for more than just the physical condition of the property. You also have to be available to answer questions from tenants, maintain security and safety, and ensure that all units are in working order.
Renting a House vs Renting an Apartment — Know the Difference
The two types of rentals are similar in the sense that they both fall under the category of tenant-landlord relationships. However, the management process for each rental type is distinct. Take a look below!
Costs
One of the most significant differences between a house and an apartment is utility cost. Basically, home rental expenses can vary depending on the size of your property. House rentals may be more expensive than apartment rentals, from bills to maintenance and repairs.
While you can offset these rent expenses, higher prices may affect how you obtain tenants. The higher your costs, the more you have to ask for rent, which may discourage potential dwellers.
To overcome this assumption, you will need a solid plan or strategy that shows how much home dwellers can afford your prices. There are many types of tenants thus, it's critical to understand the needs and preferences of your potential renters to attract more home hunters and make more money.
Rent
Setting an ideal rent can be tricky, requiring a mix of artistic instinct and scientific analysis. If the rent is too high, it may drive away potential qualified clients. If the rent price is below market value, your potential returns will likely be lower than expected. In short, undercharging or overcharging for rent can be detrimental to your property's success. That said, you must determine the fair market rent before advertising your rental property.
Generally, people pay higher rents for homes than for apartments. On average, tenants pay as low as $1,090 for a studio-type apartment, while a single-family home costs around $2,020 a month.
If you manage multiple rental properties, ExactEstate has the ultimate solution to collect your rent automatically. This makes it easier than ever to manage your rental properties.
Maintenance
When managing a rental property, you must consider how much upkeep is required. You don’t have to worry about maintenance as a landlord because it's your tenants' responsibility. For instance, the renters will be responsible for mowing the lawn or tending the garden. You will only need to step in for significant repairs, such as replacing a broken air conditioner or fixing a damaged pipe. However, tenants who fail to maintain their premises may present problems for you in the future.
Meanwhile, if you manage an apartment, you are directly responsible for maintaining your rental property. When a problem arises, occupants may request management to fix them. That said, you have to hire a handyman to repair broken parts of the unit. Moreover, you need to hire additional services, such as landscapers, gardeners, and painters, to maintain the grounds or exterior of your complex.
Size
Another main difference between a house and an apartment is their size. As mentioned, apartment rentals tend to be smaller. Thus, these units are suited for younger generations or individuals with lower income, including single women, bachelors, and students. As a manager or landlord of apartment rentals, you have to deal with various tenants in each unit.
On the other hand, a house will typically provide more space than an apartment. Many of these home rentals also include outdoor space. The best thing about it is that these features can distinguish between attracting tenants or sitting empty when marketing your rental property.
Essential Amenities
While apartment rentals are generally smaller and more expensive, they also tend to come with numerous amenities. Examples may include a swimming pool, a convenience store, a gym, or a recreational area. These features may also help attract potential clients, especially active or social dwellers. The convenience of added amenities can be an excellent incentive for renters to choose your property.
You may not have these features on house rentals, but you may have alternative amenities to market on your bottom line. For example, your house for rent may have a huge garage or a fenced yard. Families with multiple vehicles, pets, and kids will likely prefer this type of housing accommodation. Additionally, most houses come with appliances, such as dryers, washing machines, and dishwashers. Renters typically look for these amenities, too.
Manage Your Rental Property With Ease
In the end, both types of properties require specific managing strategies. Each has its characteristics that differ from the others. Whether you manage home or apartment rentals, effective management is crucial to your success.
For that reason, ExactEstate provides you with the technology to help manage your properties efficiently. From contract signing to collecting payments and tenant screening, we help you simplify your processes and enhance your bottom line. If interested, request a demoand discover how our platform can make your property management easier today!
