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Owning rental properties is a worthwhile investment, but deciding which type of rental properties to own becomes quite the challenge. The question breaks down to one subject; Multiplexes (Multi-Rental Units) VS the Single Rentals (Single-Family Residences), which is the better and wise rental property between the two to invest in.

In this Article, we are going to break it down between the two, the benefits of both, as well as the differences that make each type of these rental properties unique.

 Advantages of Multi- Rental Units

 #1: Economic Use of Land (More Building, Less Land)

Multiplexes (Multi rental units), allow for the consolidation on rental properties on a smaller piece of land. The performing assets being the building are maximized upon, while the demand on underlying land is minimized.

#2: Consolidated Overhead Structure

Multiplexes unit require a ‘one’ of everything. From one roof, to one set of gutter, one basement, one yard. Rather than paying for a multiple of everything as you would in Single rental properties, a ‘one’ of everything is all that is required.

#3: They are Much Easier to Management

With everything being consolidated to one place, property management becomes an easy task. Effort required is just making a single trip to one building, which allows for visiting of many more tenants as compared SFR’s

#4: Ability of Changing Rent Prices

Multiplexes have that unique ability in that the value of the units can be changed in reflection of gross and net rental revenue. In stagnant economies, it becomes a matter of managerial prowess if one wants to reflect greater returns. For example if expenses are greatly minimized and rent units prices raised, that is in a direct definition caused the value of the rental property to rise- all this is regardless of current state of the economy.

Advantages of Single-Rental Units (SFR’s)

Single Family Residences possess some unique and distinct advantages, as well, these include;

#1: Far Less Maintenance Demanded

SFR’s mostly feature responsible tenants, from raking their leaves, to mowing their law, and the list goes on and on. Single family residences really are responsible in taking care and managing of their own of ‘everything’. Unlike in Multi-units where the landlord is the responsible party.

#2: Observed Lower Utility Costs in General

Unlike in Multiplex rental properties, where landlords are expected to cover for some certain utility bills like trash or water, especially if units aren’t individually metered. In SFR’s rental properties however, tenants shoulder their utility costs inclusive of water and trash as well. In general, of the two investments, you may be more likely to have to pay for some utilities in a multiplex units, as compare to SFR’s

#3: Easier Parking Solutions

More Garages, more driveways, more space. SFR’s rental properties win this one hands down. As much as Multiplexes units have varied or more complex parking systems. Some have parking lots, maintenance of which is predisposed to the landlord, with other having only street parking which is less ideal to tenants.

#4: Higher Rent and Lower Vacancy Levels

As much as SFR’s have this unique feature, it is all dependent on several factors, the major of which is the area of the SFR’s, (the neighborhood). But if that is already taken care of, many tenants have a high preference of owning their house rather than sharing with other renters in multiplexes. And depending on the taste of your tenants you may command a high rent from the rental property and as well enjoy lower vacancy rates.

#5: Re-sale Value

If you are looking to sell your SFR rental property, unlike the multiplexes of which the buying pool is small comprised of majorly investors, SFR’s attract both home owner occupants, and investors alike, thus a large market pool.



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