The Ormond Beach real estate market is full of diverse investment opportunities. As an investor, you may be looking for single-family homes in established residential neighborhoods or new construction condos in HOA neighborhoods. Maybe you’d prefer a multi-family building, or a duplex or four-plex.
When you’re deciding where to invest and what to buy, it’s important that you make the acquisition knowing what will be required of you as a landlord. Today, we’re taking a look at the unique opportunities and responsibilities that come with a single-family home and a multi-family home.
Single-Family Homes: Dedicated Maintenance and Landscaping
Single-family homes make exceptional investment properties in Ormond Beach. You’ll get stable, long-term tenants who are interested in taking care of a home without buying one themselves. You’re in a good position if you buy a property that’s in a great school district and close to school, shopping, and recreation.
While you’ll have no problem attracting good tenants, you’ll have to be specific about expectations and maintenance responsibilities. With a single-family home, you’ll have to decide who is going to take care of the lawn and the landscaping. Your tenants might be willing to do it, but what if they don’t hold the same standards you do? They might let the grass grow a bit too long and they may not be qualified to trim back trees. It may be better to hire a professional lawn service and then include that cost into the monthly rent.
If there’s a pool, you’ll also have to decide who is responsible to care for it. Again – for your own protection, hiring a professional pool company is probably your best bet.
Single-family homes often come with higher rental values. But, you’ll likely have to consider HOA fees as well as HOA regulations. Make sure you provide your tenants with a complete list of rules and procedures. You’ll be held responsible by the association for any violations. Typically, the homeowner pays the HOA fee, so you’ll need to factor that into your budget and your rental value as well.
Multi-Family Properties: Less Risk but More Tenant Relations
One of the real benefits to investing in a multi-family property is that you’re protecting yourself against the loss of rent that comes with vacancy. If you own a building with six rental units, and two of your tenants give notice that they’re leaving, you aren’t going to be completely without rental income. You’ve still got four other tenants paying rent every month. This can provide a lot of financial security.
You’ll also have a cheaper per-unit maintenance cost. When it comes to things like HVAC inspections, pest control, and landscaping, you’re paying a lot less when six properties are serviced at the same time.
The major responsibility for you when you rent out multi-family units is keeping every unit occupied. You might be marketing, showing, and screening tenants more frequently than you would if you rented out a single-family home. You’ll also have to manage tenant relationships a bit more. There could be disputes over parking, outdoor space, noise, pets, or common areas. Prepare to manage those conflicts if necessary.
Whether you decide to invest in single-family homes, multi-family properties, or some combination of the two, we are here to help. Contact us at Oceans Luxury Realty when you need help with your Ormond Beach investment property.