For rental property owners, a primary decision must be made whether to manage your properties or employ a professional Thousand Oaks 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. Nevertheless, managing rental properties daily is indeed a real job that can be very time-consuming. This is why for others, professional property management makes more sense. Working with a professional to undertake all the day-to-day management frees up a lot of time, which rental property owners can use to create leads and grow their investment portfolio.
So, how do rental property owners who hire property management companies compare to rental owners who manage their properties? To respond to this question, here are quite a few recent statistics as regards rental property management that endows helpful insight into the processes of rental property owners nationwide.
Individual Investors Own 20.5 Million Rental Units
Of the nearly 50 million rental housing units in the United States, around 41% – or 20.5 million rental units – are owned by individual investor landlords. More well-known as “mom and pop” landlords, individual investors make up a vital percentage 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 other hand, though, approximately 25.8 million rental units aren’t owned by individual investors but by different business entities or collective. The rental units that aren’t owned by individual investors or families tend to become multi-family properties and apartment buildings.
The Average Landlord Owns Three Properties
On average, landlords own about three rental properties. And for various landlords, the combined value of these three properties is below $400,000. Over 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
Though owning three properties is the average nationwide, countless landlords got their start in rental property ownership by changing a primary residence into a rental. Actually, about 50% of landlords who possess just one rental property purchased it as a primary residence and then later changed it to a rental.
Half of All Landlords Manage Their Own Properties
Looking more particularly at property management, statistics display that closely 45% of property owners manage their own properties. A lot of these are individual investors and own three or fewer properties.
Conversely, 44% of property owners outsource their property management duties to a professional. These rental property owners tend to become investors who own properties in more than one state, those looking to multiply their wealth using 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 on these statistics, it’s intriguing to take 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. If accomplished well, managing rental homes needs an essential investment in time and resources.
Investors intending to run their investment properties like a business – which they are – are, in all likelihood, to contract a qualified professional to manage their properties for them. Various DIY landlords discover that professional management is a vital part of their strategy to continue to invest in rental properties.
Intelligent rental property owners hire professional property managers for lots of solid reasons. Usually, these reasons comprise advantages, namely, saving time and being able to focus on other important aspects of the rental business. Other rewards include having access to more resources, in particular, for marketing purposes, and ideal financial management and reporting. Hiring an effective property manager can bring about very important insider information into local rental markets, aid you in locating off-market bargain properties, and save money on maintenance and repairs through preferred vendor programs.
Suppose you’re a rental owner who deems to hire a property management company. These statistics exhibit that it can be an intelligent decision that will allow you to flourish in your rental business. Whether you’re looking to save time, maximize your rental income, or just grow your rental portfolio quicker, hiring a company such as Real Property Management Limitless can benefit you in so many ways.
So why wait? Contact us online today to learn more!
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.