Paula Hess wrote an excellent article about the Increase in Single Family Rental Homes nationwide and the challenges that a Property Management Firm can face while dealing with a lot of single family homes. Another big take away for this article is how important it is for the single family rental owner to have Professional Property Management. Rental owners are up against some much bigger players in the market such as the Blackstone Group. Renters are getting used to the level of service provided by these bigger companies and it will be expected whether you own one property or 100 properties.
There are strategies that need to be implemented in order to maintain profitability. For out of town investors it is important that they employ a solid well established local Property Management Company. It is very hard to handle the specific needs of Single Family Rental Properties, while you are out town, and have no visibility.
The biggest expense, as with any rental property is maintenance. Each unit, has its own roof, its own set of utilities, its own set of HVAC systems, and yard to maintain. A common strategy being employed by management companies to require tenants to handle some of the basic maintenance items themselves. Items such as Furnace Filter Replacement, unclogging drains and maintaining their appliances.