For rental property owners, a fundamental decision must be made whether to manage your properties or contract a professional Saint Charles property management company. On the one hand, do-it-yourself property management can understandably make sense for owners with repair and maintenance skills who enjoy interacting with their renters. But really, managing rental properties daily is a very real job that can certainly be very time-consuming. This is why for others, professional property management makes more sense. Employing a professional to take on all the day-to-day management frees up a lot of time, which rental property owners can use to produce 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 resolve this question here are several recent statistics for rental property management that extend valuable insight into the strategies and practices 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. Generally known as “mom and pop” landlords, individual investors make up a huge percentage of rental property owners nationwide, primarily in owning single-family rental homes.
More (Multi-Family) Rental Units Are Owned by Businesses than by Individuals
Then again, roughly 25.8 million rental units aren’t owned by individual investors but by some other business entity or collective. The rental units that aren’t 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 many landlords, the combined 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 a low 7% owning properties worth $1 million or more.
Single Property Landlords Tend to Buy as a Primary Residence
While it is a fact that owning three properties is the average nationwide, a lot of landlords got their start in rental property ownership by converting a primary residence into a rental. In actual reality, about 50% of landlords who acquire just one rental property procured it as a primary residence and then later shifted it to a rental.
Half of All Landlords Manage Their Own Properties
Looking mainly at property management, statistics reveal that over 45% of property owners manage their own properties. The majority of these are individual investors and own three or fewer properties.
On the flip side, 44% of property owners outsource their property management responsibilities to a professional. These rental property owners tend to be investors who own properties in more than one state, those looking to truly grow their wealth through 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 looking through these statistics, it’s quite interesting to see 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 carried about well, managing rental homes entails a huge investment in time and resources.
Investors desiring to run their investment properties like a business – which they are – are quite possibly to recruit and hire a qualified professional to manage their properties for them. Many DIY landlords know very well that professional management is an important part of their strategy to continue to invest in rental properties.
Capable and savvy rental property owners hire professional property managers for various reasons. In many cases, these reasons entail desirable benefits such as saving time and being able to focus on other important aspects of the rental business. Other obvious benefits include having access to more resources, for instance for marketing purposes, and great financial management and reporting. Hiring a suitable property manager can provide you with significant insider information into local rental markets, help you identify off-market bargain properties, and save money on maintenance and repairs through preferred vendor programs.
Supposing you’re a rental owner planning to hire a property management company. These statistics indicate that it can be the right choice that will grant you the ability to grow your rental business. Whether you’re looking to save time, maximize your rental income, or completely develop your rental portfolio more quickly, hiring a company like Real Property Management Endeavor can benefit you in countless ways.
So why wait? Contact us online today to learn more!
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