10 Facts About Small Rental Properties
Apparently, March 29th was National Mom and Pop Business Owners Day as well as National
Mom and Pop Landlord’s Day. To celebrate, NARResearch, which is a branch of the National Association of Realtors, shared some great information about small rental property owners .
According to the organization, just under 22.7 million of the nation’s 49.5 rental housing units are small rental properties with 1-4 units. More than 70% of those are owned and managed by those same mom-and-pop landlords.
If I could figure out how directly share the association’s post here, I would. In lieu of that, here is the rest of the fascinating information they shared.
10 Facts About Small Rental Properties
- 91% had off-street parking available.
- 9% of the 1-4 unit buildings were new residential hours, while 65% didn’t require substantial building rehabilitation.
- 32% of small rental property landlords spend less than 4 hours, and 55% spend less than 20 hours per month managing their properties.
- 26% advertise their property on an online real estate classifieds platform, while 11% use a real estate agent.
- 60% spend more than $2500 for operational expenses per housing unit (per year).
- 24% spent $1000-$4999 for maintenance per housing unit.
- 42% of these properties have a capitalization rate below 5%.
- 33% of these landlords have a mortgage or similar debt.
- 15% have a mortgage from a commercial bank or trust, and 7% from a mortgage bank.
- 48% spent less than $10,000 for capital improvement to their property.
To access the res