Single-Family Homes

• Single-family homes are among the simplest types of rental properties. They are usually indistinguishable from owner-occupied homes, except that the resident is a tenant and pays the landlord rent instead of paying off a mortgage. Single-family homeowners can choose to offer lease options, which give tenants a chance to buy the property once the rental agreement expires. In other cases, landlords who own single-family homes rent continuously and sell only when they receive a high offer or wish to leave the rental market altogether.
  
  

Multifamily Homes

• Multifamily homes are located in cities and suburbs. They include traditional duplexes as well as homes that owners have subdivided into two or more units. Multifamily homeowners have the option of renting out each unit or occupying one unit in the home and finding a tenant to rent the other unit. As with single-family homes, multifamily homes are relatively easy to manage, but when a tenant moves out, the landlord's income disappears until a new tenant can move in and begin paying rent.
  
  

Multi-Unit Buildings

• Multi-unit buildings are larger apartment buildings that include three or more rental units in one or more buildings on the same piece of property. Multi-unit buildings usually represent large investments for owners, who can take on multiple tenants for a steady flow of income. Depending on location, property taxes on multi-unit buildings can be higher than those on smaller rental properties. Rental owners who participate in their community's Section 8 housing voucher program can receive a portion of their rental income directly from the government if they take on one or more low-income tenants.
  
  

Vacation Properties

• Vacation rental properties are meant for short-term rentals. Owners must choose the location carefully to ensure a high rate of occupancy during the peak season, especially if the vacation property is located in an area where tourists are only common during a small portion of each year. Vacation rentals also add the need for resort amenities such as activities, access to transportation and restaurants.