If you are involved in a multifamily business or are interested in drafting a business plan for one, there is much to evaluate before starting or expanding your business. In this blog, Eduard de Guardiola will examine the importance of expanding a multifamily business within the real estate industry.
Experienced real estate investors know that there are a number of benefits to multi-family real estate investing, and if you are interested in funding a multifamily business, it’s important to have a clear understanding of these benefits so you can make the best choices possible. Multi family real estate properties are becoming increasingly popular and in demand throughout the United States and many places abroad. There are many reasons for this, mainly that it is an affordable solution and is often seen as convenient for people living in urban centers. They are in demand by young college students, small families and senior citizens alike, as the units are often small in size. Below is a list of benefits of investing in a multifamily real estate property.
It may come as no surprise that multi-family properties are in high demand in America, and one of the main reasons behind this trend is affordability. Not only is the price factor significant in generating demand, but it also spreads across many demographics. From college students, to small families, to retirees and many in between, multi family properties are an affordable housing solution for many and Eduard de Guardiola of Vista Group Realty claims that the demand does not appear to be slowing down.
Aside from affordability, there is another major reason as to the current and expected demand for these properties. Many baby boomers are downsizing as their children enter adulthood, and although they may be doing it for financial purposes, people in this age bracket simply want to make their lives easier and having a smaller property is one way that this is happening.
Convenience is another component in the growing high demand for multifamily residences. Most often these properties are being constructed in areas that provide convenience for the tenants, being close to major highways, retail shops and transportation hubs.
Affordable and Profitable
On a per-unit basis, multifamily property development and construction is typically much more affordable than single family home building. Eduard de Guardiola states that, “not only is it less expansive to finance and build, but it is also less costly for renters and financiers as the lower cost of construction reflects in the mortgage or rental fees.” Due to the lower cost of construction, it is possible for multifamily real estate developers to continue to build more multifamily properties in the future.
Easier Property to Manage
On the subject of property management, when comparing a suburb of single family units to multifamily units there’s no competition in which is easier to manage. A multi-family property of several units can be easily managed by fewer people when compared to single family homes. With a large mixed unit property, all that is required is one or two property managers to effectively take care of the property. This also means savings on maintenance and management fees.