Looking for a new home? You have a choice. There are many types of rental properties to choose from, depending on what you need and want.
To decide which type of rental property is best for you, consider how much space you need to accommodate everyone who lives with you. Next, think about your budget and what amenities you want. Here are six types of rental properties and the pros and cons of each type.
1. Single-family house
If space and privacy are your top priorities, renting a single-family home is your best option. It is an independent house with independent functions. These houses have direct access to the street, share no walls with other houses, and are usually situated on a plot of land.
There are several advantages to renting a single-family home:
- privacy: Since the homes are usually well spaced and don’t share a wall with their neighbors, these rentals are quieter and offer more privacy. Plus, you don’t have to use a public elevator or hallway to enter your home.
- space: Your house may have more space, including more bedrooms, a larger kitchen, and a spacious living area. The single family home also features a front and backyard so you can enjoy your favorite activities. Outdoor space makes rentals ideal for pet owners.
- Parking: If you rent a single-family home, you will typically have a driveway and possibly a garage or carport to park your vehicle. Being able to park so close to your front door ensures safety. You don’t need to park in a large parking lot or on a side street and then walk a short distance home.
Extra space and quieter living sound great, but there are some disadvantages to renting a single-family home:
- housework: Renting may come with additional responsibilities, such as the possibility of more maintenance and yard work.
- Place: Single-family homes are typically located in suburban areas, which are often quieter but farther from the city center. This could mean a longer commute to work, shopping, or to your favorite restaurant.
- cost: Although it depends on the area, renting a single-family home is generally more expensive than other types of rental properties. And, because the homes are typically larger than other rentals, utility bills are higher.
2. Low-rise apartment buildings
A low-rise apartment building has units on floors one to four. Renting an apartment in a low-rise building allows you to enjoy the benefits of apartment living, but in a quieter way. Advantages of renting an apartment in a smaller building include:
- privacy: Fewer units means fewer neighbors. Smaller apartment complexes offer more privacy and quieter living than larger apartment communities.
- Parking: Low-rise apartment buildings may offer parking near the front door, so you don’t have to lug groceries through a large parking lot to get home.
- Safety: Small apartment buildings often have a front door that only residents can enter with a key or code. This makes it inaccessible to anyone who is not welcome.
- low maintenance: A smaller space can reduce the time you spend doing household chores. Plus, there’s no yard to maintain.
There are also some disadvantages to renting a unit in a low-rise apartment building:
- noise: Being too close to your neighbors may mean you can hear everything they do in the hallway or through the walls you share.
- smaller space: Apartments are typically more spacious than houses, meaning there are fewer or fewer bedrooms and living spaces.
- rules and restrictions: Low-rise apartment buildings may have some restrictions regarding pets, visitors and noise.
Larger apartment communities—whether high-rises or large apartment complexes—are another type of rental property that come with a variety of pros and cons.
Some advantages of large apartments include:
- Conveniences: When you rent an apartment in a large community, you have access to amenities like a swimming pool, on-site gym, or public green space. These apartment amenities can save you money on gym memberships or other expenses.
- low maintenance: Renting an apartment is typically a low-maintenance experience. You’ll have to clean your space, but you won’t handle landscaping or taking care of common areas. Typically, a caregiver will also be on site.
- won’t be that expensive: Renting an apartment is usually cheaper than renting a house, depending on the location. Utilities such as water or Wi-Fi may also be included in the rent at large apartment communities.
However, not everyone is suited to living in an apartment. Here are some disadvantages:
- smaller space: Since the apartment is smaller, it can be difficult to get all the space you need. There is also often a lack of closet and storage space.
- Parking and security: You most likely don’t have a designated parking spot close to your front door. Instead, you’ll park in a large parking lot or parking lot, which may pose some safety risks, and you’ll have a long walk home.
- less privacy: Living so close to so many people means you have to sacrifice privacy. You may meet your neighbors in the hallway or on the stairs. Also, since you share walls, floors, and ceilings, there may be additional noise.
4. Apartment
An apartment is similar to an apartment in that it is a unit within a larger building or complex. However, it is also like a house, which is usually a separate piece of real estate with a specific owner. You may rent directly from the owner rather than a property manager.
There are many benefits to renting an apartment, including:
- Conveniences: Apartment communities may include swimming pools, gyms, covered parking and other on-site amenities. These units may come with top-of-the-line appliances and fixtures.
- flexibility: If you rent an apartment directly from the owner, you may have some room to negotiate the rental price and lease terms. It never hurts to ask!
- Good relationship with owners: Dealing with a landlord who only has one (or two) properties has its advantages. By developing a closer relationship with the property owner, you will benefit in negotiating repairs, upgrades and lease renewal terms.
Apartments have some unique aspects and also some disadvantages:
- cost: Many condominiums have a homeowners association (HOA) that handles pools, landscaping, and other maintenance. However, this comes at a cost. When you rent an apartment, you may need to pay HOA fees, which can range from $200 to $300 per month.
- limit: HOAs sometimes also impose restrictions on homeowners or tenants, such as limits on the number of guests that can have at one time, the size of pets, or what can be placed on the patio.
- Less legal protection: Apartment rentals are less stable than rentals for other types of rental properties. For example, a condo owner can only rent the property for a set period of time and may not renew the lease after one year.
5. Townhouse
Townhouses or townhouses share at least one wall with their neighbors, but they are usually larger than apartments. In some ways, rental townhouses combine the best of single-family homes and condos.
Here are the benefits of renting a townhouse:
- Conveniences: Townhouses are often located in communities with amenities such as pools or clubs. Many people also live in higher-security gated communities.
- low maintenance: Even though you may have a yard, you don’t have to worry about yard work. Many communities are part of an HOA, which sets the rules for exterior maintenance and is responsible for maintenance.
- more space: Townhouses are typically two stories and the same size as a single-family home, so you’ll likely get all the space you need. For pet owners, the benefits of having a yard are huge.
However, renting a townhouse isn’t for everyone. Here are some disadvantages:
- lack of privacy: Sharing a wall with neighbors can make townhouse living noisy. And, since the units are so close together, you won’t have a lot of privacy, especially when hanging out outside.
- Additional charges: Besides rent, living in a townhouse is expensive. You may have to pay HOA fees, which include maintenance and facility fees, but they can be as much as $200 per month. Due to the larger size of the units, utility bills are also higher.
- rules and restrictions: HOA communities impose restrictions on tenants and homeowners, such as hosting parties and decorating the exterior of the home for the holidays.
6. Duplex
A duplex is a multi-family dwelling with two units in the building. Duplex units have their own entrances, but the units share a common wall. Renting a duplex has its advantages. For example, if you are lucky enough to have a good neighbor, the two of you can look out for each other.
Some advantages of living in a duplex include:
- privacy: Unlike an apartment community, having only one neighbor sharing a wall means more privacy.
- outdoor space: Duplexes usually have a front and back yard for you to enjoy. This provides plenty of room for kids and pets to play and host family BBQs.
- share costs: Depending on the setup, you and your neighbors may share some costs, such as maintenance or HOA fees.
Disadvantages of renting a duplex include:
- Possibility of bad neighbors: If that neighbor is noisy or messy, it could be a problem. And, you have to talk to the owner or manager.
- Shared space: In some cases, duplexes may share driveways or yards. If your neighbors misuse these spaces, conflicts can arise and often turn into a nightmare.
- more responsibility: Duplexes are often privately owned, so owners may ask tenants to handle general tasks, such as yard work or keeping the exterior tidy.
How to decide which type of rental property is best for you
Space, privacy and budget are all factors to consider when choosing the type of rental property that’s best for you. To find the best rental properties, narrow properties by location, number of bedrooms, and type of amenities.
