For rental property owners, an important choice must be made whether to manage your properties or work with a professional Salem 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. However, managing rental properties daily is a real job that can be highly time-consuming. This is why for others, professional property management makes more sense. Hiring a professional to take on all the day-to-day management frees up a lot of time, which rental property owners can use to develop 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 clear this up, below are some recent statistics about rental property management that provide interesting insight into the procedures of rental property owners nationwide.
Individual Investors Own 20.5 Million Rental Units
Of the roughly 50 million rental housing units in the United States, around 41% – or 20.5 million rental units – are owned by individual investor landlords. Also recognized as “mom and pop” landlords, individual investors make up a significant part of rental property owners nationwide, particularly in owning single-family rental homes.
More (Multi-Family) Rental Units Are Owned by Businesses than by Individuals
On the flip side, approximately 25.8 million rental units aren’t operated by individual investors but by some other business entity or collective. The rental units that are not owned by individual investors or families tend 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 numerous landlords, the overall value of these three properties is below $400,000. Approximately 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
While owning three properties is the average nationwide, numerous landlords started their rental property ownership by turning a primary residence into a rental. In reality, about 50% of landlords who own just one rental property acquired it as a primary residence and then later changed it to a rental.
Half of All Landlords Manage Their Own Properties
Concerning property management, statistics indicate that approximately 45% of property owners manage their own properties. Many of these are individual investors and own three or fewer properties.
On the other hand, 44% of property owners assign their property management responsibilities to a professional. These rental property owners tend to be investors who own properties in more than one state, those who want to increase their wealth through investing, and those who own multi-family properties.
The other 11% of landlords are individuals who manage properties owned by others, or professional landlords.
The Benefits of Hiring a Property Management Company
When observing these statistics, it’s important to remember that landlords who manage their own properties tend to find their investment opportunities limited. It’s no surprise that landlords who manage their own properties tend to own a smaller number of rental properties. When done correctly, managing rental homes demands a significant investment in time and resources.
Investors who desire to run their investment properties like a business – which they are – are more possibly to acquire a qualified professional to manage their properties for them. The majority of DIY landlords recognize that professional management is an important component of their strategy to continue to invest in rental properties.
Savvy rental property owners acquire professional property managers for several factors. Yet, in general, these factors incorporate benefits like saving time and being able to focus on other important aspects of the rental business. Other perks include having access to more resources, such as for marketing purposes, and good financial management and reporting. Selecting the appropriate property manager can offer you essential insider information into local rental markets, assist you in discovering off-market bargain properties, and save cash on maintenance and repairs through preferred vendor programs.
Let’s say you’re a rental owner seeking to work with a property management company. These statistics prove that it can be a prudent choice that will enable you to develop your rental business. Whether you need to save time, maximize your rental income, or simply grow your rental portfolio quicker, working with a company like Real Property Management Absolute can benefit you in multiple ways.
So why wait? Contact us online today to learn more!
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