What You Need to Know About Owning and Managing a Mobile Multi-Family Rental Property - Banner

If you’re going to invest in multi-family rental properties in Mobile, you can expect some good results. You’re likely to earn consistent rental income from several different units, and you’ll be able to create some stability for your investment portfolio. Smart investors are always looking for the right opportunity with a duplex, triplex, or even a small apartment building. 

One thing to remember about multi-family investing is that the more units you own, the more rental income you can earn. We like multi-family properties because they provide higher cash flow and better ROI.

Renting out multi-family homes in Mobile is a little different than renting out a single-family home. You can expect some unique challenges and rewards, and we’re taking a look at those today.

Less Vacancy Leads to Consistent Rental Income

When you are renting out one single home, a vacancy can be a disaster. Your vacant home isn’t earning you any rental income, and you still have to pay for things like utilities, landscaping, and pest treatments. You have to keep it clean and invest resources in its marketing. 

Renting out a multi-family property provides multiple points of rent collection. You might have a vacant unit from time to time – it’s something every owner has to anticipate. However, you’ll be in a much stronger financial position. Absorbing that loss of rent is easier when you still have other properties bringing in rental income.

Fewer Per-Unit Maintenance Expenses

Maintenance costs are expensive and necessary, and it’s always advantageous to make your repairs and inspections as cost-effective as possible. It’s easier to do that when you’re renting out multiple units in a building instead of a single-family home. 

For example, when you’re scheduling preventative services, you can have all of them done at one time. HVAC inspections and water heater services will cost less when you have multiple units. You get one bill and a lot of items checked off your maintenance list. Landscaping, exterior maintenance, roofing, and other maintenance expenses are easily consolidated when you own multi-family property. Even your property management fees will be more cost-effective thanks to the volume pricing that most companies will provide.

Tenant Relationships and Neighborly Conflicts

One of the less pleasant aspects of multi-property leasing and management is that you can usually expect to be more involved in handling your tenant relationships. 

You could be called upon to handle tenant disputes, especially if one neighbor is playing loud music or another neighbor is refusing to clean up after pets. There will likely be parking disputes and complaints about how the communal areas are used and maintained. 

A strong and well-enforced lease agreement can help in these situations. You’ll need a good plan for tenant communication and dispute resolution.   

Managing Utilities in Multi-Family Mobile Rental Homes

landlord managing utilitiesWhen you rent out a single-family home, it’s easy to expect your tenants to set up their own utility accounts and pay the monthly bills. But with multi-family investments, you may want to maintain control over the electricity, water, and even cable bills and pay the accounts monthly. You can include the base cost in the monthly rent or you can charge the tenants based on usage. This doesn’t work for everyone, but it might be your best option depending on your tenants and your property.   

Working with a professional Mobile property management company is always a good idea, especially when you’re renting out multi-family properties. You can count on us to be your Mobile property management resource. Contact us at IRBY Property Management.