For rental property owners, a significant decision must be made whether to manage your properties or work with a professional Bonaire 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. Though, managing rental properties daily is certainly a very real job that can be very time-consuming. This is why for others, professional property management makes more sense. Getting a professional to handle all the day-to-day management frees up a lot of time, which rental property owners can use to bring about leads and develop their investment portfolio.
So, how do rental property owners who hire property management companies compare to rental owners who manage their properties? To answer this question, here are some recent statistics concerning rental property management that bestow practical insight into the approaches of rental property owners nationwide.
Individual Investors Own 20.5 Million Rental Units
Of the about 50 million rental housing units in the United States, around 41% – or 20.5 million rental units – are owned by individual investor landlords. Likewise commonly known as “mom and pop” landlords, individual investors make up a large percentage of rental property owners nationwide, mainly in owning single-family rental homes.
More (Multi-Family) Rental Units Are Owned by Businesses than by Individuals
However, over 25.8 million rental units aren’t owned by individual investors but by various business entities or collectives. The rental units that aren’t owned by individual investors or families are likely 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 quite a lot of landlords, the combined value of these three properties is below $400,000. Closely 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 only 7% owning properties worth $1 million or more.
Single Property Landlords Tend to Buy as a Primary Residence
While it’s true that owning three properties is the average nationwide, some landlords got their start in rental property ownership by turning a primary residence into a rental. Indeed, about 50% of landlords who maintain just one rental property obtained it as a primary residence and then later converted it to a rental.
Half of All Landlords Manage Their Own Properties
Looking more carefully at property management, statistics present that almost 45% of property owners manage their own properties. Some of these are individual investors and own three or fewer properties.
However, 44% of property owners outsource their property management responsibilities to a professional. These rental property owners are likely to be investors who own properties in more than one state, those looking to increase their wealth over 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 checking over these statistics, it’s interesting to note 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. When conducted well, managing rental homes calls for a major investment in time and resources.
Investors keen to run their investment properties like a business – which they are – are indeed likely to employ a qualified professional to manage their properties for them. Quite a lot of DIY landlords have determined that professional management is an imperative part of their strategy to continue to invest in rental properties.
Thriving and savvy rental property owners hire professional property managers for numerous reasons. Most of the time, these reasons embody improvements and benefits, in particular, saving time and being able to focus on other important aspects of the rental business. Other advantages include having access to more resources, namely for marketing purposes, and the right financial management and reporting. Hiring a great property manager can impart vital insider information into local rental markets, help you locate off-market bargain properties, and save money on maintenance and repairs through preferred vendor programs.
Consider you’re a rental owner looking into hiring a property management company. These statistics reveal that it can be a wise choice that will help you successfully expand your rental business. Whether you’re looking to save time, maximize your rental income, or simply grow and flourish your rental portfolio more swiftly, hiring a company, particularly, Real Property Management Vesta can benefit you in quite a lot of ways.
So why wait? Contact us online today to learn more!
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