Most people we talk to think that managing a multi-family property is generally the same as managing a single-family home. That’s not accurate, and if you’re an investor who has considered purchasing a multi-family rental property, make sure you understand what will be required.
Multi-family Rental Properties in Tyler
A multi-family investment differs from a single-family home in a number of ways. The physical structure is certainly different, and the tenants will interact with one another on a regular basis. With a single-family home, you rarely have to worry about tenants having conflicts or disputes with one another.
There’s more responsibility involved in managing a multi-family property. Things need to be inspected and maintained more frequently than with single-family homes. There are common areas to think about as well. Usually, investors and owners don’t think about trash removal as something that needs to be maintained. However, it’s not a tenant’s responsibility. Other things that multi-family property owners are responsible for include:
- Changing air filters for your tenants
- Pest control
The lease needs to be written very differently for a multi-family property, and there’s a lot more interaction with both the property and your tenants.
Hands-On Management is Required with Multi-Family Properties
While you might be able to manage one single-family home from out of town, it’s nearly impossible with a multi-family property. You’ll need a property manager who is local and can be involved with the building. You might have a swimming pool that requires certification. There could be difficulties with assigned parking wherein a tenant’s car could be towed for being in the wrong spot. Most tenants in your multi-family property will expect a maintenance response 24 hours a day, even if it’s not an emergency.
Some property types will require an on-site management presence. If there’s a clubhouse or a number of amenities like fitness centers or spas, an on-site leasing agent might be needed to show homes to prospective tenants. Your property manager may be able to work remotely, but you’ll want someone who is accessible and available when a response or action is needed immediately.
Accounting and Reporting with Multi-Family Properties
There are also many differences on the backend when it comes to managing multi-family properties. Owners will expect a lot more reporting when it comes to accounting statements and bookkeeping. You’ll want to be able to track your numbers, including occupancy rates, renewal rates, and the amount you’re earning in rent. We will provide monthly and annual reports that are detailed and transparent. If you want to raise rent or you’re considering a new investment, this type of data will be especially important to you.
Investors who own multi-family properties need to be more open-minded about making upgrades and investing in maintenance. Your property manager should help with every part of that from planning to budgeting and hiring vendors.
If you’re looking to invest in a multi-family property, make sure you’re dealing with a Tyler property management company who can handle these types of investments. We’d love to tell you more about what we can do for you, so please contact us at CrossPointe Management Group.