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What Makes a Good Single-Family Rental

What Makes a Good Single-Family Rental

Source:  https://magazine.realtor/daily-news/2019/08/27/what-makes-a-good-single-family-rental?AdobeAnalytics=ed_rid=2087701&om_mid=1286|RealtorMagNews_2019_08_27&om_nytpe=REALTOR%20MAG%20NEWS

The share of single-family rentals is growing, and more builders are jumping in to build a home that can be rented out from the get-go.

But how are single-family rental homes different than your typical single-family home?

Single-family built-for-rent homes tend to be smaller than their for-sale counterparts. The median square footage of a single-family built-for-rent home was about 1,500 square feet in 2016, which is significantly smaller than the 2,419 median square feet for other new-home builds, according to the National Association of Home Builders. Eighty percent of single-family homes built for rent are under 2,000 square feet.

Some additional characteristics noted on NAHB’s Eye on Housing blog of single-family built-for-rent homes are:

  • They tend to have fewer bedrooms and bathrooms. Twenty percent of SFBFR homes had just one full bathroom compared to less than 1% of for-sale homes.
  • They are more likely to be a single-story building.
  • They are seven times more likely to be a townhouse.
  • They are more common on a smaller lot.
  • They are more likely to have a vinyl siding exterior and less likely to have stucco.
  • They are more likely to have one-car garage or no garage.

The highest share of single-family homes built-for-rent are located in the West South Central Census division—Texas, Oklahoma, Arkansas, and Louisiana, NAHB reports.


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