delete

Advantages of Having 5 or Fewer Rental Property Units

There are a lot of benefits that you have to know when you own a property that has less than six units. Here are some of the following:

You can diversify in a small area

Smaller properties provide you the option to buy many properties within various neighborhoods since they are less costly compared to larger apartment complexes. You can consider purchasing properties on various blocks within a similar neighborhood as well or buy rentals in a totally different area, state, or city. Moreover, you can try a different type of property investment with a smaller mixed-use rental property, such as retail as you get a more stable residential rentals income at the same time. This is a great strategy to propagate your business.

Your tenants can help you with maintenance

Rental properties that have 6 units or lesser gives more homey vibes compared to apartment complexes that are larger. Commonly, a tenant will get the initiative to mow the lawn, shovel the walkway, or take out the garbage by themselves. The tenant might either do this free of charge, may do it in exchange to get for some amenity like a free parking area, or may ask for a small rent reduction.

You don’t need to outsource for help

If you own a smaller rental property, you can usually deal with it yourself without outsourcing any services. This way, you can surely save money since you won’t need to hire a building superintendent or property managers near me. You’ll precisely know what’s up with your rental property every day. As you’re very involved, you can most likely spot issues right on, like property damage or late rent payment, before they transform into a worse problem.

You can be exempted from State Deposit Rules

Some states offer exemptions from other state landlord-tenant laws. For instance, the landlords in New Hampshire, who have 5 or lesser numbers of units living in the rental property don’t necessarily have to adhere to the statewide rules of security deposit. Hence, since the basic security deposit maximum within the state is one month’s rent, such property owners are free to charge their tenants any amount of security deposit of their liking. But, when any tenant in the property ages 60 or more, the statewide security deposit rules will still apply to that tenant.

You can be exempted from fair housing rules

One of the most essential things that property owners should know when they are managing and renting their property is the Fair Housing Rule. It’s in your greatest interest to treat all of your current and potential tenants fairly and not discriminate against anybody. However, there will still be instances when a landlord can be exempted from adhering to fair housing rules. Generally, any property that’s occupied by the owner with four or lesser units doesn’t need to follow fair housing laws. But, make sure to always inspect your local news to know whether various rules apply.