Rental properties are not limited to just large apartment complexes. For one, single-family homes can be rental properties. In fact, statistics suggest that being put up for rent is an increasingly common use for single-family properties here in the United States.
RealtyTrac estimates indicate that non-owner-occupied homes make up around 35 percent of homes bought in 2015. Additionally, Zillow estimates point to a 30-year-high being reached when it comes to single-family homes being rented out.
Why the increase in single-family home renting? The conditions in the real estate and mortgage markets in recent years are being pointed to as contributors.
Also, it is becoming increasingly common for smaller investors to get into the single-family home rental game. Among the things that could be contributing to this are a dissatisfaction with more traditional investment options among such individuals and a desire among such individuals for an investment they can have greater control over.
Now, whether a rental property investor is a professional leasing out apartments in a big complex or a smaller investor leasing out an individual single-family home, significant legal issues can come up during the formation of and the course of lease agreements with tenants. How such legal issues are dealt with are among the things that can impact what kind of financial impact renting out a property actually has for an individual. Thus, small investors who have opted to try renting out single-family homes may want solid legal advice in their new investment endeavor. Skilled real estate attorneys can assist landlords of all experience levels, investment size and property types with legal matters related to renting out properties.
Source: Bloomberg, “Landlord Nation: Boomers’ New Retirement Plan Is Millennials Paying Rent,” Patrick Clark and Suzanne Woolley, Aug. 4, 2016