For rental property owners, a major decision must be made whether to manage your properties or recruit a professional Huntington Woods property management company. On the one hand, do-it-yourself property management can make sense for owners with repair and maintenance skills who enjoy interacting with their renters. But on the other hand, managing rental properties daily is certainly a real job that can be quite time-consuming. This is why for others, professional property management makes more sense. Contracting a professional to engage in all the day-to-day management frees up a lot of time, which rental property owners can use to build leads and increase their investment portfolio.
So, how do rental property owners who hire property management companies compare to rental owners who manage their properties? To reply to this question, here are various recent statistics regarding rental property management that give advantageous insight into the methods and practices of rental property owners nationwide.
Individual Investors Own 20.5 Million Rental Units
Of the almost 50 million rental housing units in the United States, around 41% – or 20.5 million rental units – are owned by individual investor landlords. Furthermore recognized as “mom and pop” landlords, individual investors make up an essential percentage of rental property owners nationwide, in particular, those owning single-family rental homes.
More (Multi-Family) Rental Units Are Owned by Businesses than by Individuals
But at the same time, nearly 25.8 million rental units aren’t owned by individual investors but by different business entities or collective. The rental units that aren’t owned by individual investors or families tend to get in multi-family properties and apartment buildings.
The Average Landlord Owns Three Properties
On average, landlords own about three rental properties. And for several landlords, the combined value of these three properties is below $400,000. Roughly 40% of landlords own properties with a combined value of less than $200,000, while 30% own properties valued between $200,000 and $400,000. Another 30% of landlords own properties with a total value above $400,000, with just 7% owning properties worth $1 million or more.
Single Property Landlords Tend to Buy as a Primary Residence
Even though owning three properties is the average nationwide, numerous landlords got their start in rental property ownership by transforming a primary residence into a rental. As a matter of fact, about 50% of landlords who hold just one rental property acquired it as a primary residence and then later transformed it into a rental.
Half of All Landlords Manage Their Own Properties
Looking more in particular at property management, statistics clearly show that approximately 45% of property owners manage their own properties. Several of these are individual investors and own three or fewer properties.
On the contrary, 44% of property owners outsource their property management obligations to a professional. These rental property owners are inclined to be investors who own properties in more than one state, those looking to enlarge their wealth by way of investing, and those who own multi-family properties.
The remaining 11% of landlords are individuals who manage properties owned by others, or professional landlords.
The Benefits of Hiring a Property Management Company
When looking into these statistics, it’s engaging to point out that landlords who manage their own properties tend to find their investment opportunities limited. It’s no coincidence that landlords who manage their own properties tend to own a smaller number of rental properties. Once executed well, managing rental homes necessitates a vital investment in time and resources.
Investors wanting to run their investment properties like a business – which they are – are, in all probability, to appoint a qualified professional to manage their properties for them. The majority of DIY landlords discover that professional management is a significant part of their strategy to continue to invest in rental properties.
Clever and savvy rental property owners hire professional property managers for quite a lot of considerations. Generally, these reasons involve advantages and benefits like for instance saving time and being able to focus on other important aspects of the rental business. Other returns include having access to more resources, particularly for marketing purposes, and suitable financial management and reporting. Hiring the appropriate property manager can bestow important insider information into local rental markets, foster and help you detect off-market bargain properties, and save money on maintenance and repairs through preferred vendor programs.
Assuming you’re a rental owner assessing hiring a property management company. These statistics depict that it can be a wise decision that will permit you to develop and grow your rental business. Whether you’re looking to save time, maximize your rental income, or simply increase your rental portfolio quickly, hiring a company such as Real Property Management Advantage can benefit you in a lot of ways.
So why wait? Contact us online today to learn more!
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