Small rental properties make up about 46 percent of rentals and of these rentals, 70 percent are owed by mom and pop landlords who typically manage the properties by themselves, according to the U.S. Census and an article by the National Association of Realtors.
Mom and Pop landlords’ rentals are defined as one- to-four units.
“Among 49.5 million rental housing units in the U.S., nearly 46 percent of them are properties of 1-4 units. Over 70 percent of the 1-4 units are owned by individuals, and about 70 percent are managed by the same owners, defined as mom-and-pop landlords,” the article says.
The U.S. Census Bureau conducts the Rental Housing Finance Survey every three years. The main purpose of this survey is to learn about the financial health of rentals. Specifically, it provides insight into the financial, managerial, and physical characteristics of rental properties nationwide by covering topics such as property configuration, ownership and management, rental income and expenses, financing, and capital improvements and expenses, the article says.
“Being a mom-and-pop landlord can be challenging, especially when someone is starting out and doing everything from evaluating and purchasing rental properties, finding and screening tenants, collecting rents, keeping the books, dealing with taxes, observing local laws, and performing routine maintenance and repairs,” Nadia Evangelou, Senior Economist & Director of Real Estate Research for the National Association of REALTORS® writes in the article here.
Here are 10 things to know about properties of 1-4 units compiled from the U.S. Census and the National Association of Realtors.