I'm looking at a property that has 19 one bedroom, one baths & 3 Coefficients. It is in a class c neighborhood, mostly working families. I tried looking for a discussion similar to this, but when i type in "unit mix", mostly discussions about mixed properties pop up. Anyways my hare brained question today is this:
What are the pros/cons of one bedroom units?
I read that 2 bedrooms rent faster, but lets say that I'm in the middle of Miami where the vacancy rate is pretty low. Am I wrong to assume that even if it takes a little longer to rent out a 1/1, it'll still be ok (assuming that it'll take a week or two longer) ?
I've heard that 2 bedrooms are more popular for families? But why is it so important to rent to families? Is it because they stay longer and thus turnover is lower? Wouldn't kids cause more havoc on a unit anyways?
That's all I could think of now, could you give me your thoughts? Also, if I should be aware of certain issues, please share! Thank you BP community! You have been invaluable to this newbie.
I think it depends on who your target renter is. I have a 20 unit all 1 bedrooms but it is in our downtown area walking distance to bars/restaurants. It appeals to young singles and couples and college students that want that kind of lifestyle.
I get premium rents for it for the size of units and don't have any problems finding renters.
If I had the same building in a suburban neighborhood I think I'd have trouble finding people because all the units out there are all 2-1,2-2,3-2.
One bedroom units are often the easiest to rent. They appeal to both single individuals and couples. Whereas 2brs could appeal to couples and a family with children. One bedroom units are also the units that have the most turnover as that tenant base is less "tied down."
Turns for 1BRs should be lighter as it's usually just one or two people without kids and there is less square footage. Yet, there are usually more turns.
Average turnover per year nationwide is over 50%. Depending on the property, and the area, I might assume as high as 60% for heavily 1BR units.
A good unit mix is 2 to 1 ratio of 2/3 beds for every 1 bed turnover is higher
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