New to Real Estate · Charlotte, NC · Member since 2019 · 49 posts · 17 votes
Hey there smart people,
So, I am starting with my real estate investor career recently and I came across this one question for which I'm getting biased answers. So, here is my question: Why would people choose to rent a house over an apartment? what are the pros and cons of both sides?
Flipper/Rehabber · Charlotte, NC · Member since 2010 · 241 posts · 127 votes
6y
living in the south more people prefer a house to rent over an apartment.(this is my opinion) When I was living in north jersey alot of people preferred an apartment like @Account Closed stated when the cost of living is super high. You will notice people want apartments to get a break on living expenses. However, Living in the Charlotte area people with families want to rent a house due to you get a yard and you dont have someone on top of you all day & night. I know someone who is currently looking for a place to rent she is 50 plus & by herself. She refuses to live in apartment she is only looking for small houses due to she wants to control her peace around her. And doesnt want to have to deal with other people not cleaning up their dog mess, no noise on top of her or bottom of her. This is just my observation & not FACT on this matter. I do desire to pickup apartment buildings in the near future. However, I am very glad i have SFR's in covid 19. Right now I know a few of my counter parts who stay in luxury apartments complexes who have rented an AIR BNB houses to help decrease their chances of getting COVID-19. And alot more people are choosing to rent houses due to that matter.
Real Estate Agent · Boston, MA · Member since 2016 · 450 posts · 214 votes
6y
@Yashank Choksi am I the one living in it, or do I own it and I'm trying to rent it out in this scenario? I think that in general people would prefer a house, but living in a city these are harder to come by and apartments might have amenities that make them more alluring.
If you are looking to buy a place to rent out, a house. With condos, you have condo fees and rules that you and the tenants have to follow plus if the condo is not well managed, you get hit with special assessments. Condos have a lower entry point, but once you add in the condo fees, you aren't any further ahead and may be behind.
For you to live in and rent-do what works for you. Some people like the condos as there is no yard to keep up, but you also share your walls with neighbours.
Rental Property Investor · Sumter, SC · Member since 2015 · 334 posts · 531 votes
6y
@Yashank Choksi I've had a couple of tenants that moved from apartments into my SFH because they wanted a yard for their dogs and kids to run around in. Some people might enjoy having a yard of their own for entertaining, cooking out, etc. too.
Flipper/Rehabber · Cincinnati, OH · Member since 2020 · 300 posts · 417 votes
6y
There are pros and cons to both sides, but I think those pros and cons will also vary depending on the location. For example, if you're in a large city with high rent and housing costs, more people are probably going to look to rent an apartment instead of a house, because rent is already so high. If you're in a smaller city with lower cost of living, renting a house may be more alluring to people.
Renting a house typically involves more responsibility than renting an apartment, but it can provide more space, and a private yard. Like @Kyle Spearin said, apartment amenities can be a pro for people. It's nice to not have to pay for gym, a pool membership, etc., if your apartment complex provides all those things.
Depending on your location, whether your rental is a house or an apartment, will probably draw different prospective tenants based on what type of person typically rents and values a house vs an apartment (or vice versa) in your area.
Los Angeles, CA · Member since 2019 · 512 posts · 301 votes
6y
@Yashank Choksi apartments, straight forward, simple but less space. Houses, more maintenance, uniqueness and each house has its own problems. For living id never go back to an apartment. Feels like I’m living in expensive socialism, can’t explain it, maybe i shouldn’t have lived in a grey colored apartment...
New to Real Estate · Charlotte, NC · Member since 2019 · 49 posts · 17 votes
6y
@Kyle Spearin I own nothing at present and I just got out of my college. I am thinking of getting my first investment property with an FHA loan. And for that, I am educating myself. During this, I came across this question as the place where I live is full of apartments and very few houses to rent. But thank you for giving me a direction to think.
New to Real Estate · Charlotte, NC · Member since 2019 · 49 posts · 17 votes
6y
Thank you @Dawn P. @Account Closed for your opinions. In conclusion, I understood that it all depends on the choice of tenant and the location of my property. Still, in some way, I feel like a house could be a good start for me in some ways.
Flipper/Rehabber · Charlotte, NC · Member since 2010 · 241 posts · 127 votes
6y
living in the south more people prefer a house to rent over an apartment.(this is my opinion) When I was living in north jersey alot of people preferred an apartment like @Account Closed stated when the cost of living is super high. You will notice people want apartments to get a break on living expenses. However, Living in the Charlotte area people with families want to rent a house due to you get a yard and you dont have someone on top of you all day & night. I know someone who is currently looking for a place to rent she is 50 plus & by herself. She refuses to live in apartment she is only looking for small houses due to she wants to control her peace around her. And doesnt want to have to deal with other people not cleaning up their dog mess, no noise on top of her or bottom of her. This is just my observation & not FACT on this matter. I do desire to pickup apartment buildings in the near future. However, I am very glad i have SFR's in covid 19. Right now I know a few of my counter parts who stay in luxury apartments complexes who have rented an AIR BNB houses to help decrease their chances of getting COVID-19. And alot more people are choosing to rent houses due to that matter.
Real Estate Syndicator · Milwaukee, WI · Member since 2018 · 1k+ posts · 907 votes
6y
A house provides more privacy and usually a yard. Which may attract more families. On the other hand, apartment complexes usually are priced lower. Apartments generally have some sort of amenities offered as well.
Lender · Charlotte, NC · Member since 2017 · 131 posts · 59 votes
6y
Hey @Yashank Choksi, I know I am late to the party but I hope I can add a different perspective. I agree with a lot of information that was stated here -Location, cost of living, personal situation (family or individual) - all play a role into which way people will steer when looking at potential rentals.
If we look at trends and newly identified behaviors based on the current pandemic I think the tides will sway a little more in favor for a SFR or garden style apartment for the foreseeable future. Because many states have active shelter in place orders, we are seeing that people are really looking into the space they rent. New renters are wanting space, optional room to telecommute (this can be a new standard feature as it has forced the workforce to learn to work remote), yard and some amenities that you can use on your own without the worry of others being around such as, grills, patios, in-home gyms...all things that apartment living usually offer as an amenity since the smaller floor plans and no yard do not allow you the freedom of bringing those features inside your place for private use.
As a lender, I know plenty of people who invest in both strategies (Multifamily properties and SFR portfolios) and they have seen a greater interest in the SFR space vs the MF apartment space. In addition, the tenants tend to sign longer term leases or stay for a longer term reducing the cost of lease up, punch list or marketing when you started 12-18 month apartment lease is up for renewal. You can also charge a premium for SFR is prime neighborhoods allowing you to offset the increase operating/maintenance cost of not having all your tenants in one building.
No option is wrong but you should digest what the current rental market is projecting for your area and account for all costs associated with each.
Happy to answer any other questions and hopefully this gives you some additional insight to make the best decision for you.
New to Real Estate · Charlotte, NC · Member since 2019 · 49 posts · 17 votes
6y
Thank you @Nasar Elarabi. I see that this COVID-19 situation has changed the way people think And houses will be a hit for this certain time period. Thank you @Brock Mogensen for your opinion too.
Rental Property Investor · Augusta, GA · Member since 2016 · 97 posts · 56 votes
6y
@Yashank Choksi Great question. But I think you need to ask yourself the question "which would you rather own, houses or apartments?"
People obviously rent both types of properties but owning a managing an apartment can be totally different than single family houses. Some people choose to do both (I did) but others decide to stick to one or the other. Also, if you are getting started, houses are usually where most people start.
Either way, glad you are interested in real estate! Best of luck to you