When we talk about investments, rental property is one of the best vehicles going today – even during the Pandemic period. Investors still find rental property a huge potential for high rewards and has a relatively low risk record, no matter what the current real estate market is at large. Different types of rental properties comes in all shapes and sizes and can be found anywhere, so who would not want to boost investment through renting out a space?

If you’re looking to purchase a rental property, you have plenty to choose from such as apartments, condos, townhouses, semi- detached houses, detached houses, student housing apartments etc. 

There’s a long list of it, however, some types of rental properties can be better for investors than others. In this article, let us show you the different types of rental properties that can help you find and make the best investment option for you. 

TYPES OF RENTAL PROPERTIES

When you’re looking for rental property to invest in there are a lot of different types to choose from. The most common types of rental properties include:

Apartments

Apartments are individual units within a larger building or complex. They can range from studio apartments to multi-bedroom units. Apartments often come with shared amenities like pools, gyms, and common areas.

Pros:

• Maintenance and repairs are usually handled by the property owner or management company.
• Often include amenities like gyms, laundry facilities, and sometimes even pools.
• Generally located in convenient areas close to shops, public transport, and entertainment.

Cons:

• Limited privacy due to shared walls and common areas.
• Noise from neighbors can be an issue.
• Often have restrictions on modifications and pets.

Single-Family Homes

Single-family homes are standalone houses designed for one family. They typically include a yard and are located in residential neighborhoods. These homes offer more privacy and space compared to other rental options.

Pros:

• More space and privacy.
• Often include a yard and a garage.
• Greater freedom to make the space feel like home.

Cons:

• Higher rent compared to apartments.
• Maintenance and yard work may be the tenant’s responsibility.
• Typically located in suburban areas, which might mean longer commutes.

Condos

Condominiums (condos) are similar to apartments but are individually owned units within a larger building. Owners can rent out their units while also being responsible for paying condo association fees.

Pros:

• Access to shared amenities like gyms, pools, and security services.
• Often located in desirable areas with good access to services and transport.
• Sense of community with other condo residents.

Cons:

• Rent might be higher due to shared amenities.
• Rules and regulations set by the condo association must be followed.
• Maintenance requests may take longer if handled by the owner.

Townhouses

Townhouses are multi-story homes that share one or two walls with adjacent properties but have their entrances. They often include small yards or patios and are located in suburban or urban areas.

Pros:

• More living space and privacy than apartments.
• Often include a small yard or patio.
• Located in suburban and urban areas, offering various living environments.

Cons:

• Shared walls can still mean noise from neighbors.
• Maintenance might be partially the tenant’s responsibility.
• Often have homeowner association (HOA) fees or rules to follow.

Duplexes and Triplexes

Duplexes and triplexes are buildings divided into two or three separate living units. Each unit has its own entrance and living space.

Pros:

• More affordable than single-family homes.
• More space and privacy than apartments.
• Often found in residential neighborhoods.

Cons:

• Shared walls with neighbors can mean less privacy.
• Maintenance responsibilities can vary.
• Fewer amenities compared to larger apartment complexes.

Multi-Family Homes

Multi-family homes include duplexes, triplexes, and fourplexes. These properties contain multiple units within one building, allowing you to rent out each unit separately.

Pros:

• Multiple streams of rental income.
• Lower per-unit maintenance costs.
• Easier to manage multiple units in one location.

Cons:

• Potential for higher tenant turnover.
• Shared walls can lead to noise complaints.
• More complex property management.

Loft Apartments

Loft apartments are large, open spaces with high ceilings, often found in converted industrial buildings. They have a unique, modern feel and are popular in urban areas.

Pros:

• Unique and modern living space.
• High ceilings and open layouts allow for creative designs.
• Often located in trendy, urban areas.

Cons:

• Can be expensive due to their unique features.
• Open layouts might lack privacy.
• Often located in older buildings, which may have maintenance issues.

Studios

Studios are small types of rental properties, single-room apartments that combine the living, sleeping, and kitchen areas into one space.

Pros:

• Generally more affordable than larger apartments.
• Easy to maintain and clean due to their small size.
• Ideal for individuals or couples who need less space.

Cons:

• Limited space can feel cramped.
• Lack of separate rooms means less privacy.
• Not suitable for families or those with many belongings.

Co-Living Spaces

Co-living spaces are shared living arrangements where individuals rent a private bedroom but share common areas like kitchens and living rooms.

Pros:

• More affordable due to shared living costs.
• Fosters a sense of community and social interaction.
• Often located in convenient urban areas.

Cons:

• Less privacy due to shared common areas.
• Potential for conflicts with housemates.
• Shared responsibility for cleaning and maintaining common areas.

What Are the Most Common Types of Rental Properties?

The most common types of rental properties include single-family homes, multi-family homes, apartments, and condos. These properties are popular due to their ability to cater to a wide range of tenants, from families looking for long-term residences to young professionals seeking urban living spaces. 

Each type offers unique benefits and challenges, making it important to consider your investment goals, target market, and management capabilities when choosing the right rental property.

Conclusion

Different types of rental properties also have their own unique benefits and drawbacks. There are also significant differences in the construction and size, cost of ownership and property management, and the investment and exit strategy among the various types of rental property. If you’re planning to invest into Single Family houses but no one’s to manage or not sure about the processes, APG Properties single family management can surely be an aid for you. With their thousands of hours of experience, you’ll get to have your property be managed in less hassle, plus generate more profitable income from your investments.