Home Rentals In Park City Property Management
When deciding on an investment property ROI is one of the primary considerations. With any given property there are ways to maximize your ROI and make your investment a more profitable endeavor. As I have written before in "Maximize Your Property - Tips For Park City Property Management" one of the biggest ways a property loses money is through vacancy and turnover. There are several things you can do to reduce vacancy, like working to keep good tenants, making requested repairs or upgrades to the property, etc. But what if the property by it's nature encourages short term tenancy and yearly turnover?
Single Family Homes
A recent survey of national rental properties found that 52% of all rental properties in the United States are single family homes. 3.6 million of those homes were originally built as owner-occupied properties that passed into rentals when the original owners lost the property in foreclosure. During the recent of the housing boom and bust, from 2005 to 2010, single family home rentals increased by 21%, versus a 4% increase in total housing units. While the purchase price of a single family home can be initially prohibitive there are substantial reasons why renting a home can make sense for Park City property management
Length Of Stay
When compared with multi-family rental properties such as condominiums or apartments the tenants of single family homes indicated they plan on staying longer than 5 years about 26% of the time. This represents an 18% increase from the average apartment or condominium tenant. As far as stable, long-term investments go this represents a great number for property investors. As I have mentioned turnover and vacancy are costly for any landlord. If your property attracts tenants who are looking to stay long term you can minimize the potential for loss and maximize your rental income.
Demographics
Another appealing aspect of single family rentals is the demographics of people searching for these properties. The majority (53%) of single family tenants are between the ages of 35 and 44. 66% of single family tenants make between $75,000-$100,000/year, versus 51% of multi-family tenants making between $50,000-$75,000. Also 65% of single family renters have a household of three or more members and 63% include children. For a landlord this means that the largest pool of interested people are older, stable families with a healthy income. With the potential for longer tenancy and prosperous tenants a single family rental may be the way to go in Park City property management.
Reasons For Renting
The survey also included some interesting reasons for renting that I think apply to Park City property management. Most people view the ability or inability to qualify for a home mortgage and the primary reason for either buying or renting. However this was given as only the third most popular reason by current tenants. While 60% of single family tenants and 44% of multi-family tenants plan on being a home owner within the next 5 years of the tenants who do not plan on owning a home the biggest reason offered was they prefer being a renter. The next most common reason given by people who prefer to rent is they do not want to own a home. For many of these people renting is a preferred choice rather than the only available option.
If you would like more information about single family or multi-family rental properties, or further information about Park City property management in general click the link below for a free consultation. You will receive valuable information specific to your property that will help you make an informed decision. You will also receive a free, no-obligation quote on our property management services. At CC Realty we specialize in making investment property ownership a trouble free experience. Please contact us today for your free consultation.
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