Expense Rule of Thumb for Single Family Houses?

[Nathan Emmert]

I understand the tried and true 50% rule (or guideline) for rentals but that is based on apartments, i.e. multifamily dwellings.

What's the rule for single family houses?

I would assume it would be lower as expenses often paid for by a landlord on MFH such as landscape upkeep, sidewalks, water/sewer/garbage, etc are transferred directly to the renter in a single family dwelling??

[J Scott]

It's probably about the same. While there are some costs that are offset for a SFH (like the ones you mention above), you also generally lose out on the economies of scale.

For example, with an apartment building, your PM costs (percentage) will generally be less than a single house, your maintenance costs will generally be less than a single house, your vacancy could very well be less (since with a single family house, you potentially lose tenants during a turnover, whereas with an apartment, you have other places to put them), etc.

So, I would guess that it's still in the 45-55% range, depending on the condition, age, location, etc of the property.

That said, I have no hard data to support this assumption...