For rental property owners, an essential decision must be made whether to manage your properties or appoint a professional Alpharetta 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 certainly, managing rental properties daily is a real job that can indeed be very time-consuming. This is why for others, professional property management makes more sense. Recruiting a professional to carry on all the day-to-day management frees up a lot of time, which rental property owners can use to set up leads and expand their investment portfolio.
So, how do rental property owners who hire property management companies compare to rental owners who manage their properties? To deal with this question, here are certain recent statistics regarding rental property management that provide profitable insight into the styles and practices of rental property owners nationwide.
Individual Investors Own 20.5 Million Rental Units
Of the practically 50 million rental housing units in the United States, around 41% – or 20.5 million rental units – are owned by individual investor landlords. Usually noted as “mom and pop” landlords, individual investors make up a relevant percentage of rental property owners nationwide, specifically in owning single-family rental homes.
More (Multi-Family) Rental Units Are Owned by Businesses than by Individuals
On the flip side, practically 25.8 million rental units aren’t owned by individual investors but by a few other business entities or collectives. The rental units that aren’t owned by individual investors or families are apt to be in multi-family properties and apartment buildings.
The Average Landlord Owns Three Properties
On average, landlords own about three rental properties. And for the majority of landlords, the combined value of these three properties is below $400,000. Nearly 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, lots of landlords got their start in rental property ownership by reforming a primary residence into a rental. In point of fact, about 50% of landlords who have just one rental property got it as a primary residence and then later switched it to a rental.
Half of All Landlords Manage Their Own Properties
Looking more primarily at property management, statistics indicate that roughly 45% of property owners manage their own properties. Quite a lot of these are individual investors and own three or fewer properties.
By contrast, 44% of property owners outsource their property management accountabilities to a professional. These rental property owners are apt to be investors who own properties in more than one state, those looking to bring up their wealth through 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 going through these statistics, it’s interesting to mention 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 done well, managing rental homes needs as much investment in time and resources.
Investors desiring to run their investment properties like a business – which they are – are certainly more likely to enlist a qualified professional to manage their properties for them. The majority of DIY landlords have figured out that professional management is a relevant part of their strategy to continue to invest in rental properties.
Very successful and savvy rental property owners hire professional property managers for solid reasons. Though generally, these reasons include various benefits like saving time and being able to focus on other important aspects of the rental business. Other payoffs include having access to more resources, like for marketing purposes, and good financial management and reporting. Hiring an efficient property manager can furnish you with necessary insider information into local rental markets, effectively help you to find off-market bargain properties, and save money on maintenance and repairs through preferred vendor programs.
Presume you’re a rental owner taking into account hiring a property management company. These statistics manifest that it can be a really good decision that will effectively help you increase your rental business. Whether you’re looking to save time, maximize your rental income, or just increase your rental portfolio more swiftly, hiring a company such as Real Property Management North Point can benefit you in numerous ways.
So why wait? Contact us online today to learn more!
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