The Future of Home Living – Advantages of Investing in Single-Family Rentals

Brad Smith
Written By Brad Smith

Single-family homes are undoubtedly one of the most popular types of rental properties out there. This is a major reason behind investors splurging on these properties, especially if they are diversifying their portfolios. 

Now the question is, is this a good choice for your business? You see every investment has pros and cons. For beginners in the rental property game, single-family homes offer much more benefits than drawbacks. 

Single-family homes have a high demand because of their affordability, and potential to generate solid profits. If you would like, you can invest in Wan Bridge single family homes for rent and become a rental property owner yourself.

the future of home living – advantages of investing in single family rentals

What is a single-family home?

Before we discuss why investing in a single-family home is a smart move, let us understand what a single-family home is. Simply put, these are homes that are rented out with just one unit. Typically, they are situated in suburban or rural parts of a city.

One of the reasons they are attractive is that single-family homes often include backyards or gardens. Plus, they vary in size and shape, catering to tenants from various backgrounds and preferences.

Now that you know what a single-family home is, let’s explore the advantages of investing in them.

Profitable Investments

Due to the growing popularity of single-family rentals, investing in these properties is highly profitable. On average, the rental prices for these homes increase by 3% annually.

Also, you can charge a higher rent for a house compared to an apartment. While multi-family properties or apartment complexes might yield a higher monthly income, they come with additional fees, tasks, and obligations. Another good thing is that single-family homes also offer tax benefits.

High Demand

When deciding to invest in a property, it’s crucial to weigh the demand factor. The good news is that single-family homes rank highest on the list for tenants when looking for accommodation. According to the National Rental Home Council, single-family homes constitute a significant 40% of the total share of the property market. From families to students, and professionals, they lean towards the appeal of a single living space.

Living in a single-family home has many advantages like greater privacy, outdoor space, etc. Due to the limited availability of these properties, tenants are unable to find their ideal home. For investors, this trend is great news. By investing in a single-family home, you can generate significant profits.

Tax Benefits

This is another major benefit of investing in a single-family home. These rental properties come with a host of tax advantages that can help save more money in your pocket when it comes to paying taxes. From deductible expenses like mortgage interest and property taxes to depreciation benefits, you get all the benefits you expect. 

Plus, if you play your cards right, you may even qualify for tax-deferred exchanges or other strategies to minimise your tax burden further. In short, owning a single-family rental is all about profit-making.

Potential for Appreciation

While past performance is no guarantee of future results, single-family rentals have a track record for appreciation over the long term. As property values increase over time, so too can the value of your investment. 

Plus, if you are strategic about your property selection and location, you may be able to capitalise on emerging markets or areas poised for growth. This is a great way of further boosting your returns.

Easy Maintenance

It is easy to manage single-family rental properties due to their small size. When you own a single-family home, you may not have to hire a professional property manager to look after the property.

On the other hand, if you own an apartment building, there’s more to handle, which might not be possible for you to do alone. Even if you are hiring a property manager, it is important to consider factors like if you want to earn a passive income, or want to be involved in management work. However, if you wish to handle things yourself and save money upfront, a single-family home is the best choice.

Single-family rentals offer an excellent investment opportunity for those looking to diversify their portfolio and generate a steady income. It offers a great way to build long-term wealth while saving much on taxes.

smith brad omni

Written by Brad Smith

CEO & Lead Interior Designer

Brad Smith is an experienced interior designer and the founder of OmniHomeIdeas.com. With a Master's degree in Interior Design from Pratt Institute and a passion for creating safe and healthy living spaces, Brad shares his expert insights and innovative design ideas with our readers. His work is driven by the belief that home is where every story begins.