3,000,000 Single Families Converted to Rentals Since 2008

According to Property Management Insider, there has been a marked shift in rental preferences. 

Single family rentals as a percentage of the total market have increased approximately 20% since the financial crisis, from 15% of the market to 18%. And although it's impossible to predict, the trend seems to be that single families will increase in popularity.

The median age of marriage has increased from 25 years old to 27 years old for women, and from 27 years old to 29 years old for men. This signals many years of renting before buying a home. Single family rentals can compare favorably to apartments because of yard space, dog friendliness, privacy, and garages, all of the amenities that only larger complexes can offer. Renting a single family is like owning a home without being tied to a geographic area, which may change because of work.

For investors of multi-families, this creates both an opportunity and a challenge. The opportunity may be to purchase a single family. The challenge is to keep your existing multi-families competitive for the best renters.

Opportunities to Make a Multi more like a Single

Owners of multifamilies might wish to consider the following to make their units competitive with single families.

• Build garages or other covered parking.
  • If zoning laws are tough, this can make the reward for a successful appeal even greater, because you will be one of the few properties in the neighborhood to offer covered parking.
• Consider soundproofing when making renovations:
  • Replacing cast iron with PVC introduces flushing noises; new cast iron is dead silent and will last as long as the original cast.
  • Cork underlayment beneath click-floor can eliminate foot traffic noise, especially from children.
  • Acoustic ceiling tiles, insulation and air-sealing can help reduce transmission of air-based noises like conversation and music.
• Build a fence and create a grassy, dog-friendly area of the property.
• Hire a landscaper or mason to segment multifamily yards into different areas, so each unit feels like they have a more private space for their own table, chairs, garden, or grill.
• Use landscaping to screen out neighboring multis or the road.
• Replace or expand private porches or balconies, instead of tearing them down.
• Establish house rules about noise, and encourage open communication when stereos or other activities interfere with quiet enjoyment elsewhere on the premises.
• Establish clear smoking policies, and if possible, don't mix smokers and non-smokers in a building. Secondhand smoke can make a place feel very shared.