Multi-Family vs. Single-Family Homes: Which is Right for You?

You have a variety of options as a new landlord when it comes to creating your investment portfolio, including the sort of property you want to manage to ensure rental income streams. On the other hand, if you don’t know where to begin, the procedure can be intimidating.

We created this tutorial to address this issue. We’ll go through the many kinds of properties that landlords should be aware of as well as the advantages and disadvantages of managing each kind. Let’s get going!

What does a single family home management entail?

Single-family homes, as the name implies, are dwellings created for just one family and have a maximum of four units.

A single-family home is a standalone building with no sharing walls with another house. Within the same building, multifamily residences contain various living units. An apartment building is a multifamily residence, whereas a freestanding ranch-style house is a single-family home. The number of units distinguishes these property categories as well. Multi Family homes have four or fewer units, whereas single-family homes only have one unit.

Due to their ease of management, single-family homes are more frequently used as investment properties by first-time landlords, however multifamily properties can provide a better return on investment. We’ll break them down further to help you comprehend single-family vs. multifamily dwellings.

Advantages of running a single-family home

Tenants who stay for years at a time:

A single-family house is frequently a long-term investment, so you don’t need to be on the lookout for new tenants all the time.

Low maintenance costs

Since single-family occupancy is more likely to be steady, you may anticipate long-term renters to care for the property well, saving you money on repairs and upkeep.

Consistent resale value:

Because single-family homes are more prevalent than multifamily ones, their value tends to keep steady over time. You’ll earn more money back when it’s time to sell or refinance your investment!

Single-Family Home Management Has Some Drawbacks

High upfront costs:

Management of a single-family house is no minor undertaking; there are numerous costs involved in the process, such as those for real estate agents, lawyers, title firms, etc., which may add up rapidly.

ROI declines with vacancies:

Although many tenants in single-family homes desire to extend their leases as long as possible, some may unavoidably need to relocate. When that occurs, you’ll need to locate a new renter very once or risk having your investment plan derailed.

 Homeowner association (HOA) dues:

In addition to your property tax, insurance premiums, and other costs, you can also be required to pay homeowner association dues in your neighborhood.

A Multifamily Home Management: What Is It?

Any property with more than one dwelling unit but fewer than five units, such as a triplex or duplex, is considered a multifamily home.

These dwelling units typically include more residents than a single-family home, therefore there will probably be more individuals sharing common areas (like gardens, lawns, laundry areas, etc.). Multifamily homes typically feel more like a community because of this communal area.

Advantages of Multi-Family Management

Less risk:

Purchasing a multifamily home carries risks (just like any other investment), but they are significantly lower than if you were purchasing other types of property because it is unlikely that you would have a total vacancy given that many tenants will be residing in your units.

Easy to finance:

Since a multifamily property is a lower-risk investment, the bank is more likely to offer you the money for it.

Long-term value:

“Multifamily properties are priced almost completely based on how much income-generating potential they have,” according to Green Residential. They have more consistent long-term growth since they are frequently bought and sold as investments.

The Drawbacks of Multifamily Housing Management

Increased time required for property management:

Multifamily rentals demand more time from you (or your property manager) than single-family houses because there are more tenants and units to look after.

Multifamily housing presents new challenges because occupants are more likely to interact with one another. For instance, if you have a noisy renter, it’s possible that he will disturb your other residents as well, necessitating the need for you to come up with novel ways to address tenant behaviour and feel comfortable doing so.

Greater restrictions:

Due to the larger number of individuals affected by each property, multifamily homes are subject to more restrictions than single-family homes.


We hope this guide has given you a better understanding of your possibilities, regardless of how you decide to organise your real estate portfolio or which kinds of investment properties you decide to explore.

We also advise diversifying your investment holdings and accumulating equity over time. Check out Eagle Property Management if you’re seeking a comprehensive property management application! It includes all you require for simple management of each property.

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