For rental property owners, an important decision must be made whether to manage your properties or hire a professional Denton property management company. On the one hand, do-it-yourself property management can be reasonable for owners with repair and maintenance skills who enjoy interacting with their renters. Yet, managing rental properties daily is a serious job that can be very time-consuming. This is why for others, professional property management makes more sense. Getting a professional to manage all the day-to-day management frees up a lot of time, which rental property owners can utilize to develop 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 address this concern, the following are some recent statistics about rental property management that deliver valuable insight into the procedures of rental property owners nationwide.
Individual Investors Own 20.5 Million Rental Units
Of the about 50 million rental housing units in the United States, around 41% – or 20.5 million rental units – are owned by individual investor landlords. Also called “mom and pop” landlords, individual investors make up a large number of rental property owners nationwide, especially in owning single-family rental homes.
More (Multi-Family) Rental Units Are Owned by Businesses than by Individuals
At the same time, nearly 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 most landlords, the combined value of these three properties is below $400,000. About 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
Although the average nationwide landlord owns three properties, numerous landlords got their start in rental property ownership by converting a primary residence into a rental. In fact, about 50% of landlords who own just one rental property bought it as a primary residence and then later transitioned it to a rental.
Half of All Landlords Manage Their Own Properties
Concerning property management, statistics prove that about 45% of property owners manage their own properties. The majority of these are individual investors and own three or fewer properties.
On the other side, 44% of property owners employ a professional to take care of their property management. These rental property owners tend to be investors who own properties in more than one state, people 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 you look at these statistics, it’s interesting to see that landlords who manage their own properties tend to find their investment opportunities limited. It’s not a coincidence that landlords who manage their own properties tend to own a smaller number of rental properties. When performed right, managing rental homes requires a significant investment in time and resources.
Investors who want to run their investment properties like a business – which they are – are more likely to seek out a qualified professional to manage their properties for them. Most DIY landlords realize that professional management is a critical aspect of their strategy to continue to invest in rental properties.
Savvy rental property owners get professional property managers for several reasons. But most of the time, these reasons incorporate perks like saving time and being able to focus on other important aspects of the rental business. Other benefits include being able to use more resources, such as for marketing purposes, and good financial management and reporting. Selecting the ideal property manager can provide you with useful insider information into local rental markets, assist you in finding off-market bargain properties, and save funds on maintenance and repairs through preferred vendor programs.
Suppose you’re a rental owner and are thinking about getting a property management company. These statistics indicate that it can be a great choice that will help your rental business grow. Employing a company such as Real Property Management Engage can benefit you in many ways, whether you want to save time, maximize your rental income, or just develop your rental portfolio faster.
So why wait? Contact us online today to learn more!
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