For landlords looking to make a bit more on monthly rent payments, renting out multiplex apartments is a very attractive option. These rental properties offer the unique advantage of containing multiple distinct living units at a lower upfront cost than two separate units, as well as being easier to maintain and manage. Whether you’re a landlord trying to turn your side hustle into a full-time job or just seeking some guidance on how to manage your multiplexes, you’ve come to the right place!
While multiplexes do offer a number of advantages unique to this type of unit, managing one comes with its unique challenges and obstacles that must be overcome to make it worth your while. So what are these difficulties, and how can you settle them to make your business profitable? Let’s find out!
Did you know that duplexes aren’t the only type of single-building, multi-unit rentals? There are actually several variations on this basic concept, with three, four, or even more individual living units per building. The more units a building has, the less each individual unit will cost you to maintain on a monthly basis.
As a general rule, the number of units a multiplex contains determines the term used to refer to it. A multi-family property with two units is a duplex, one with three units is a triplex, one with four units is a quadruplex, etc. Multiplexes with more units are typically more expensive but allow the owner or landlord to house more tenants and thus pull in more monthly rent.
For the most part, managing a multi-family home with more units can be either more or less difficult and expensive — depending primarily on how many multiplexes you own. For landlords with the capital and experience necessary to maintain a greater number of rentals, a larger multiplex can be easier to manage. For those without the benefit of these resources, a smaller unit might be more manageable.
Regardless of what type of rental you’re managing, time management and scheduling are among the most crucial skills to achieve success. Multi-family buildings are no different; whether you have just one or half a dozen, ensuring that you can adequately address all problems that arise at these units will require you to manage your time efficiently and responsibly.
If you want to achieve this goal, the first thing you’ll need to do is to put together an itinerary and schedule. There is a wide variety of ways to do this, from mobile phone applications to pen-and-paper or a calendar. Which of these to choose will depend on what works best for you. Just pick one and stick to it!
Once you’ve done this, it’s time to work out a routine maintenance and upkeep schedule. It can be as hasty or thorough as you want it to be, but the general goal of these routine visits is to spot problems with appliances or the building itself before they reach a state of urgency. Creating such a routine will help you spend as little time as possible working on urgent maintenance matters.
Another way to streamline your day-to-day tasks as a landlord is to hire employees to help with maintenance, accounting, or any other tasks that are taking up too much of your time. Hiring someone to take care of these matters can free up your schedule to better manage your properties and be effective in your role as a landlord.
A maintenance technician, for example, will free you from the obligation to be a jack of all trades and let you have more time for other tasks and issues. Having a maintenance person on call at all times will free you from the responsibility of being obligated to respond to tenant emergencies.
For landlords operating multiplexes with common areas, a custodian can help you keep these areas clean without having to roll up your sleeves and do the work yourself. Also, with the help of a custodian or two, your apartments will be spotless, and your tenants will be abundantly appreciative. Consider hiring one!
Whether you already own a multi-family property or simply want to add one or two to your portfolio, there are a few things to consider before you buy. Things to research, people to ask the advice of, markets to peruse, and much more await you when you’re planning to purchase a multiplex. So what will you have to consider, exactly?
The first factor, obviously, is price. Whether or not you can afford the property is the primary concern, but you should also try to search for a property that will retain its value in the future. You should do a thorough research of your local real estate market and suss out any potentially lucrative property acquisition opportunities.
In order to get the best deal possible, you’ll want to find a real estate agent in your area and see what’s on the local market. These skilled, experienced professionals will do everything in their power to get you set up with a multi-family home that suits your needs and budget in as little time as possible.
There’s no denying the fact that multiplexes are a uniquely profitable business affair, offering great potential to ambitious landlords and enterprising people alike. While we certainly didn’t cover everything you need to know before purchasing and managing a multi-family property, we hope we’ve given you a better idea of what you need to know if you want to be successful in this role. With some hard work, diligent research, and a reasonably healthy sense of intuition, you’ll have great success. We wish you the best of luck!
Mariia serves as editor-in-chief and writer for the Rentberry and Landlord Tips blogs. She covers topics such as landlord-tenant laws, tips and advice for renters, investment opportunities in various cities, and more. She holds a master’s degree in strategic management, and you can find her articles in such publications as Yahoo! Finance, Forbes, Benzinga, and RealEstateAgent.