As the single-family rental market continues to grow, so does the need for property management businesses that can scale. Learn about the tactics you can use to maximize profitability and grow your organization.
The single-family rental market has exploded in recent years, with more and more people renting rather than buying homes due to a number of reasons. With this increase in demand comes new opportunities for property management businesses. Here’s a snapshot of the current state of the market.
In January 2022, there was a 13% increase in U.S. single-family rent growth, the fastest year-over-year increase in over 17 years.*
There are 15 million single-family rental units in the United States, which are mostly owned by individual investors.**
The homeownership rate for millennials is 49%. That’s over 20 percentage points below Gen X and nearly 30 below baby boomers.***
Download our free playbook to find out how you can improve the employee and owner experience and boost efficiency, so you can achieve your growth goals and maximize profitability.
With demand at an all-time high, your peers are looking to capitalize on growth opportunities. In fact, single-family home rental management businesses are nearly twice as likely as multifamily organizations to view adding new units to their portfolio as one of their greatest opportunities in the next 12 months.*
Manual tasks are eating up valuable time, negatively impacting the employee experience, and inhibiting growth for your peers. According to the survey, over half of single-family home rental management businesses cited freeing up teams from labor-intensive processes as a top opportunity in 2023.*
Your colleagues are weary of economic conditions and looking for ways to maximize revenue. Based on the report, 42% of single-family home rental management businesses believe inflation is the biggest risk in 2023, with delinquencies being the second biggest risk (38%).*
Follow these best practices to effectively grow your single-family rental management business.
Strong owner relationships pave the way for future business growth. Here are some ways you can attract and retain owners for the long term.
Your team is the foundation of your business. Employees’ needs have changed, which means you have to find ways to differentiate your business if you want to attract and retain top performers.
As your business grows, things get more complex. To have sustainable growth you need to either add more staff or simplify your processes to support new units.
Yes. You can rent out rooms in a single-family home.
Yes, you can rent a single-family home to multiple tenants. There are a few things to keep in mind, however. First, you will need to make sure that you structure your lease to accommodate multiple tenants. Secondly, you will need to make sure that the property can accommodate multiple tenants (e.g., enough bedrooms, bathrooms, etc.). Lastly, you will need to make sure that you are comfortable with the potential for increased wear and tear on the property.
There is no easy answer to this question, as there are a number of factors to consider before making a decision about investing in single-family rental property. However, as a general statement, single-family rentals can be a good investment if done correctly and with care. As with any single-family real estate investment, there is always some risk involved, but if you do your research and work with a reputable property management company, you can help minimize that risk.
Rent control laws vary from place to place. However, in general, rent control laws do apply to single-family homes. So if you're thinking about renting out a single-family home, it's worth checking to see if there are any rent control regulations in your area that you need to be aware of.
A single-family rental is a property that is rented out to one family or party. This type of rental is usually found in residential areas.
The percentage of single-family homes that are rentals can vary greatly depending on the location. However, according to a recent study by the Joint Center for Housing Studies at Harvard University, the percentage of single-family homes that are rentals has been increasing in recent years and is currently estimated to be around 30%. Additionally, as of May 2022, Altus Group reported that there are approximately 15 million single-family rental units in the United States.
There are many types of single-family homes, but the two most common are detached homes and semi-detached homes.
There are a few different ways you can manage single-family rentals. One way is to hire a property management company to handle the day-to-day tasks such as marketing the property, screening tenants, and handling maintenance and repairs. Another way is to self-manage the rental property, which requires more time and effort but can save you money on property management fees.
Effectively managing a growing property management business requires a lot of patience, flexibility, and perseverance. With dispersed properties and staff,...
In a previous article, I shared some strategies for attracting and onboarding new owners to sustainably scale your property management...
In the first article of this series, I talked about how you can acquire new rental owners and scale sustainably....