So you’re thinking about buying a new rental property in Portland Oregon and you have a variety of options to choose from including townhomes and single family homes but what makes the better option?
In this article, we will break down everything you need to know about investing in single family homes versus townhomes so that you can make the best decision for your Real Estate investment.
Single Family Homes
Single family homes are without a doubt one of the best real estate investments you can make especially for the following reasons:
- Appreciation – Single family homes, especially in the Portland Oregon area, typically see more appreciation than townhomes or condos do since most home buyers will typically search for a single family home first instead of a townhome or condo because the average buyer doesn’t want to be faced with having to pay the maintenance that’s associated with a townhome or condo.
- Fewer Limitations – When you own a single family home you will face fewer limitations with this type of Portland Oregon Rental Property than you would with a townhome because, with a single family home, unless it’s part of an HOA, you won’t have to worry about charging your tenants more for rent to cover your fees that you may have to pay while living in a condo especially since they will be able to research prices online and know within minutes if you are charging more for rent than other properties down the street.
- Fewer Restrictions – Sadly, with townhomes and condos most are part of condo associations and they can make it more difficult for owners when it comes to how they use their condo or who they decide to rent it to.
- No Additional Fees – Another important reason to consider purchasing a single family home for a rental property instead of a townhome or condo is that you won’t have to worry about special assessments or membership fees that are common with townhomes and can increase over time.
- Better Financing Options – Last of all, but most important, another important reason to consider investing in a single family home versus town home or condo is that it’s often easier to obtain a higher loan-to-value ratio when buying a single family home versus townhome.
Ultimately your decision to buy a single family versus a townhome or condo depends on your finances and financial goals at the time of purchase but considering that most renters like the space that comes with renting a single family home, no shared walls with other tenants and room for their families to grow, owning at least one single family rental property makes a smart investment for any owner.
Still can’t get the idea of owning a townhome out of your mind? No problem. There are many advantages that come with owning a townhome or condo including the following:
- Lowe Maintenance – Let’s face it, owning a single-family home does present challenges because your tenants will be responsible for caring for the yard maintenance, unless you hire a landscaping service, but when you own a townhome you won’t have to worry about maintenance because basic landscaping and roof maintenance will be covered by your HOA fees.
- Affordable – Buying a townhome is certainly affordable, especially for first-time investors, and when you consider that a townhome offers more advantages to renters like a pool area, clubhouse and other amenities it makes sense to put your money to work in the best investment possible.
- Fewer Concerns – Thanks to Homeowners Associations you can rest easy if you plan on traveling a lot since the HOA will continue to keep the landscaping at your townhome maintained and alert you to any problems or issues at your rental property.
Yes, there certainly many advantages that come from owning a townhome but it’s also important for you to consider that townhomes do come with some disadvantages including the fact that they offer less privacy than single family homes, have shared walls with other townhomes, less yard space (depending on condo) and the resale value for condos in some areas may not be as good as a single family home.
As with buying a single family home which property you ultimately decide to invest in ultimately depends on your financial situation and personal goals but in today’s hot Portland Oregon Rental Market it’s important to keep in mind that most renters are not against renting townhomes than they were years ago, especially if the townhome is closer to the downtown area, so it makes sense to invest in a townhome if this Real Estate investment meets all of your financial goals.
Get Portland Oregon Property Management
Regardless of if you decide to purchase a townhome or single family home one of the most important things you must do is get Portland Oregon Property Management to professionally manage your rental property especially for the following reasons.
- Professional property management will save you the time, money and hassle of managing your rental property yourself.
- Portland Oregon Property Management will make sure that you are paid on time every single month and you will finally be able to eliminate the hassle of dealing with renters who don’t pay you on time.
- Your property management company will also be responsible for being your tenant’s first line of defense if they get locked out of the rental property in the middle of the night or have maintenance issues that need to be resolved on the weekend.
- Working with a Portland Property Manager will also give you the freedom to focus on growing your portfolio of rental properties instead of being burdened with additional responsibilities when you purchase another rental property.
Learn more about the team of professional property management specialists we can offer you by calling our Portland Oregon Property Management service at (503) 515-3170 or click here to connect with us online.
Property Management Systems is an experienced property management company in the Portland Oregon area learns more about us by reading our website, Google our business name or finds us on social media to learn more about the benefits we can offer you.