For rental property owners, a basic decision must be made whether to manage your properties or enlist a professional San Clemente 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 on the flip side, managing rental properties daily is a real job that can be very time-consuming. This is why for others, professional property management makes more sense. Appointing a professional to tackle all the day-to-day management frees up a lot of time, which rental property owners can use to establish leads and better 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 a few recent statistics about rental property management that present beneficial insight into the techniques and practices of rental property owners nationwide.
Individual Investors Own 20.5 Million Rental Units
Of the over 50 million rental housing units in the United States, around 41% – or 20.5 million rental units – are owned by individual investor landlords. Additionally known as “mom and pop” landlords, individual investors make up a considerable 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
But in actuality, almost 25.8 million rental units aren’t owned by individual investors but by several business entities or collective. The rental units that aren’t owned by individual investors or families are inclined 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 some landlords, the combined value of these three properties is below $400,000. Practically 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, various landlords got their start in rental property ownership by turning a primary residence into a rental. In reality, about 50% of landlords who retain just one rental property possessed it as a primary residence, and then later turned it into a rental.
Half of All Landlords Manage Their Own Properties
Looking more closely at property management, statistics depict that nearly 45% of property owners manage their own properties. The majority of these are individual investors and own three or fewer properties.
On the other hand, 44% of property owners outsource their property management commitments to a professional. These rental property owners are inclined to be investors who own properties in more than one state, those looking to raise their wealth by 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 over these statistics, it’s enticing to state 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. Whenever performing well, managing rental homes demands a crucial investment in time and resources.
Investors meaning to run their investment properties like a business – which they are – are more likely to get a qualified professional to manage their properties for them. Most DIY landlords have determined that professional management is a necessary part of their strategy to continue to invest in rental properties.
Savvy and successful rental property owners hire professional property managers for countless reasons. Mostly, these reasons include payoffs like saving time and being able to focus on other important aspects of the rental business. Other gains include having access to more resources, especially for marketing purposes, and appropriate financial management and reporting. Hiring a good property manager can grant you relevant insider information into local rental markets, support you to discover off-market bargain properties, and save money on maintenance and repairs through preferred vendor programs.
Let’s suppose you’re a rental owner thinking of hiring a property management company. These statistics present that it can be a smart choice that will let you progress and grow your rental business. Whether you’re looking to save time, maximize your rental income, or merely build up your rental portfolio more rapidly, hiring a company, in particular, Real Property Management Agile can benefit you in lots of 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.
