In our most recent survey of renters across the U.S., 68% of single-family residents revealed that they’re considering moving out of their current home.
For property managers already in the single-family market, seeing that number can be a wake-up call: taking steps now is critical to avoid vacant properties in the near future.
For management companies thinking about adding single-family homes to their portfolios, this can also be a chance to win new business by offering the services renters are looking for.
Wherever you find yourself, single-family rentals offer opportunities that are hard to beat—if you know how to position your property management services.
Read on to learn the latest insight on where the market is headed and five steps you can take to succeed in single-family property management.
What Is a Single-Family Rental Property?
Single-family properties constitute the largest segment of the U.S. rental market, accounting for 34% of rental properties, with 42% of renters calling a single family unit home. They’re most commonly located in suburban and rural areas. Each property usually includes a detached, standalone building with dedicated external areas such as walkways, lawns, and driveways.
The most important feature of single family rental properties is that the homeowner owns both the structure and the land. As a property manager, you’ll be renting the entire property to a single family or individual.
Single-Family vs. Multifamily Property Management
At first glance, single-family properties might seem like less effort to manage than their multifamily counterparts. After all, a multifamily building will likely have several units and tenants occupying them, each requiring services like a way to pay rent, regular upkeep, repair requests, and so on.
Stepping back, however, multifamily portfolios often benefit from economies of scale. You can hire a vendor’s services for projects that benefit multiple units in a property (think common spaces and shared utilities), usually at a lower per-unit cost.
You can also use much of the same marketing material for different vacancies within a property. You spend less time hopping from location to location and keeping yourself up to date with the specifics of each area like local ordinances, community programs, and important details about the neighborhood.
On the other hand, single-family properties are more spread out and require individualized expertise and services for each area. If you have a larger portfolio, catering to these different properties can become even more time consuming.
With single-family properties, you’ll also be dealing with tenants that have different priorities than multifamily renters. On average, three people live in each single family property (as opposed to two for multifamily units). They’re usually related and are often looking for more space, greater privacy, and the benefits of living in a home without the demands of homeownership.
Managing single family tenants can require more personalized service to accommodate these priorities. While you probably won’t be handling as many disputes between tenants, you might have to go the extra mile to help renters feel that sense of having their own private space to call home.
Single-Family Property Management Trends to Expect in 2023
Currently 43% of single family households contain multigenerational families and 29% of households contain families with children. We expect both of these types of renters to be the fastest-growing demographics in the coming year.
Factoring in the ongoing shortage of starter homes, renters will likely continue to struggle to make the jump to homeownership, causing the demand for single-family rental properties to keep rising in the near future. In contrast, we expect single family households that consist of roommates or a single renter to decline slightly.
At the time of our most recent survey, 32% of single-family renters said that they planned to move out of their current property by mid-2023, and an additional 36% are still considering whether or not to move.
When asked why they plan to move, 39% of renters said they plan to buy a home, while 34% said they are moving due to affordability concerns. A common thread in responses from the renters we surveyed was that their decision to stay or leave was largely motivated by the value they are getting out of their current rental property.
Luckily, property managers can affect renters’ perceived value in several ways. In the next section, we’ll walk through strategies to help you find new clients, keep your ideal tenants, and hone your single-family property management strategy this year.
Step 1: Know the Essentials of the Single-Family Rental Property Market
We’ve already discussed generational demographics of single family renters, but it also helps to know more details about the market itself.
For example, while large states such as California and Texas have the greatest number of single family rentals due to their size, more rural states such as Oklahoma, Kansas, Arkansas, Idaho, and West Virginia have a higher percentage of single family units compared to other types of rentals.
Looking ahead, Arizona, Texas, and North Carolina will likely see the most build-to-rent properties coming online over the next few years. All of these locations are prime spots to search for new single family owners to grow your portfolio.
Speaking of owners, here’s a breakdown of the types of investors behind single-family properties:
- Individual investors own an estimated 95–97% of the single-family rentals.Those usually consist of smaller, mom-and-pop style landlords that typically own a handful of units.
- Build-to-rent-focused developers, homebuilders, investors, and REITs are behind 5–10% of new properties being built. Those investors are concentrated in the suburbs around high-growth, lower-cost metros throughout the Sun Belt.
- Institutional SFR aggregators own 3–5% of existing single-family rental homes and are typically located in states that were hit hard by the subprime mortgage crisis, including Nevada, Arizona, and Florida.
These numbers show that individual investors still constitute the vast majority of single-family property owners.
Many owners also operate under tight margins. Overall, 59% of owners rely on rental property income to pay their household bills and property expenses.
Renters are also often operating under tighter budgets. In the past year, single-family residents were less likely than other renters to report that they pay all of their bills on time and in full and are more likely than other renters to carry debt (by around 10 percentage points).
For a closer look at the latest stats on single family property owners and renters, take a look at our Single Family Renters Report and check out our guides on attracting small-portfolio investors and accidental landlords.
Stepping into the shoes of owners and potential residents can help you partner with the right clients and market your properties to the right audience. From there, specific tools can help you seal the deal with quality, long-term tenants.
Step 2: Find the Right Tenants for Your Single-Family Property
Effectively marketing your single-family properties starts with creating an attractive rental listing. The bar has risen when it comes to listings that stand out. Easy-to-scan descriptions that prominently feature amenities, neighborhood perks, and defining features of the property are important, but consider including videos and the option for a virtual tour, as well.
These options are steadily getting more popular not just with renters, but also with owners, too. 31% of owners surveyed in our most recent industry report want property managers to start offering virtual tours as part of their leasing services.
After putting in the work to create a listing that reflects the best parts of your property, be sure to syndicate the listing on the most popular sites for renters. Property management technology such as Buildium can do that for you in a matter of seconds. From there, you’re ready to schedule showings.
Showings should be easy to coordinate and tech like ShowingHero simplify scheduling for you with the added benefit of fast and clear communication with prospective tenants. Because scheduling a tour is usually the first real interaction you’ll have with renters, leaving a strong impression by making the most of the tools available to you.
The logistics only get more complicated when you kick off the application process. You’ll need a system in place to receive and review applications quickly while still being judicious about who to move forward and abiding by the Fair Housing Act (FHA). Consider these tools to help you in the process:
- An online rental application portal that can store and copy customized app, lets residents track the progress of their submission, and makes updating the status of each application easy for your team
- A tenant screening tool, backed by a trusted credit reporting agency like TransUnion to conduct thorough background checks efficiently.
- Property inspection software that’s accessible on mobile, giving you a detailed view of each property that you can access whenever needed.
- A flexible security deposit service that protects the assets of you and your owners while still giving renters easier ways to make payments or even deposit-free options that remove unnecessary barriers for responsible tenants.
- Additional services to help get new tenants set up with the utilities they need quickly, saving you time while also reducing move-in stress for your new tenants.
Beyond these tools, you can go the extra mile by preparing a simple welcome package with important details on the property and recommendation for restaurants, amenities and entertainment in the area.
Once you use technology to handle important procedures, small gestures like this can add a personal touch to your service that leads to better, longer lasting relationships with tenants.
Read more about attracting residents with leasing technology.
Step 3: Simplify Your Bookkeeping and Reporting Process
Engaging with renters and owners isn’t the only way to succeed in single family property management. Let’s talk about bookkeeping and backend operations.
To avoid getting overwhelmed by property accounting, especially as you grow your portfolio, take advantage of strategies that make bookkeeping easier and more reliable.
These five strategies can help you set up an air-tight accounting system:
- Set up four basic accounts: a property management trust account, a security deposit account, an operating account, and a property management reserve account (optional)
- Set up a property management chart of accounts that categorizes each transaction within the general ledger. You can learn more about organizing your chart of accounts here.
- Decide whether to use cash or accrual accounting, or whether to record transactions when the money is paid or when expenses occur.
- Decide whether to use single-entry or double-entry bookkeeping. Double-entry bookkeeping is usually recommended as it lets you distinguish between the source of money received and where it is deposited (both debit and credit).
- Set up a reporting schedule for managing invoices and receipts. You’ll need to be sure that all money flowing in and out of your business is recorded and verified on a regular basis.
On top of these five steps you should also consider setting up a trust account to keep the payments you receive from tenants separate from your operating capital.
Read more about the best accounting practices for property managers.
By now it’s probably clear that basic accounting tools like excel spreadsheets or even Quickbooks might not be enough to set up and manage accounting. That’s why we recommend using purpose-built property management accounting software that automates the most time-consuming parts of accounting while keeping your books accurate.
When exploring your options, look for a solution that can easily integrate with the rest of your business software, lets you generate custom reports easily, and gives you a head start on tax season.
Buildium’s accounting capabilities check all these boxes, working seamlessly with the rest of our property management tools in one complete package.
A reliable accounting process backed by time-saving technology can benefit the rest of your operations. With easily accessible and up-to-date numbers you can share reports with owners faster, ensure that every payment is accounted for, and even make smarter investment decisions to grow your business and take on more properties.
With your backend operations running smoothly, you can devote more time to personalized service that strengthens your brand as a property management company and contributes to tenant retention.
Here’s a full list of features to help you in your search for the right software:
Buildium’s accounting capabilities check all these boxes, working seamlessly with the rest of our property management tools in one complete package.
A reliable accounting process backed by time-saving technology can benefit the rest of your operations. With easily accessible and up-to-date numbers you can share reports with owners faster, ensure that every payment is accounted for, and even make smarter investment decisions to grow your business and take on more properties.
With your backend operations running smoothly, you can devote more time to personalized service that strengthens your brand as a property management company and contributes to tenant retention.
Step 4: Avoid Vacancies with Smart Tenant Engagement
Single family renters have a special connection to the properties they live in. In many ways they can take on a sense of ownership of the place they live, creating a sense of home that’s a bit harder for renters in multifamily units.
Of course, the property still belongs to the property owner and it’s up to property managers to walk the line between being an advocate for owners while preserving the affinity tenants have with the place they rent.
There are a few priorities that matter most when tenants consider the value of their single-family rental property. By strategically focusing on the following areas, you can keep your ideal tenants for longer.
The quality of service from landlords and property managers
Single-family renters’ experiences are largely shaped by the level of service that property managers provide. The strategies on finding tenants outlined early can go a long way in leaving a positive first impression on new renters. To preserve this reputation you’ll need a convenient way to communicate with tenants.
Making most of your resident-facing operations digital is one way to start. 76% of single-family renters prefer to make rental payments online, so an e-payment option is a simple way to make one of the regular interactions you have with renters easier.
Another tool you can use is an online portal or resident center that gathers all communication and requests concerning your tenants in one place. Using a portal, you can share messages either with individual renters or entire portions of your portfolio. Tenants will also have a reliable way to get a hold of you and share requests, without having to switch between emails, calls, texts, and other platforms.
You can even use survey tools such as Opiniion to get feedback from tenants without having to go through the hassle of setting up and sending out forms from scratch.
The condition of the property and attention paid to maintenance issues
Keeping up with single-family property maintenance has several benefits, not least of which is avoiding costly repairs for issues that go unchecked. But, a well-maintained property is a property that attracts more renters faster—and one that tenants will be less likely to leave in the first place.
If you haven’t already, create checklists for seasonal maintenance and year-round repairs to ensure not even a single loose pipe slips through the cracks when you inspect each property. Check your HVAC systems and have vendors on hand for emergency repairs and in preparation for winter storms, hurricane season, or other inclement weather that may threaten your property.
Even with the most thorough inspections, a clogged drain or broken appliance is bound to pop up from time to time. Give your tenants an easy way to submit maintenance requests.
Often, you’ll be able to enable this feature in a resident communication portal. Tenants can enter all the information they need for a repair conveniently and you’ll be able to track the progress of tickets and share updates in real time. Integrated property management software also lets you store vendor contact information and share jobs with them digitally to get repairs done faster.
To take even more work off your team’s plate, consider a maintenance contact center that handles all requests for you, with responsive agents available 24/7/365. The service is aligned with your company’s branding and you’ll still have full visibility into each repair, so you can ensure that the whole experience is seamless for your tenants.
Your property’s amenities and services
22% of the single-family renters that plan to move are doing so because they want a place with amenities that are more appealing or that better suit their needs. You can keep these tenants in your properties by making small investments in the services and creature comforts they care about most.
- A community kitchen where we could have gatherings
- Garden space to grow my own food; on-site composting
- Garbage pick-up and recycling
- Off-street parking
- Pest control
- Lawn care services
- Smart home technology
- A playground
- High-speed internet
- An ATM on site
Beyond boosting the appeal of your property, certain can also serve as additional sources of revenue for your business. By creating a resident benefits package that combines sought-after services you can charge a small fee that has an outsized influence on tenants’ quality of life. The best part is some of these services are already available within comprehensive single-family property management software.
Common resident benefits package services include:
- Refrigerator Filter Delivery that auto-delivers filters, similar to HVAC services
- A Virtual Concierge for large single-family communities with keyless entry to shared space, package receipt, event bookings, and reservations for certain facilities
- A Resident Portal available through property management software such as Buildium
- 24/7 Maintenance Requests provided by services like a maintenance contact center
- Utility Management and Payments to turn on utilities upon move-in and roll utility payments into a tenant’s rent each month
- Renters Insurance to ensure renters are covered for damage and liability while also protecting property managers from damages that may occur
The right combination of amenities combined with regular maintenance can keep tenants happy and save you money—with even additional opportunities for profit—in the long run.
Step 5: Invest in the Right Single-Family Property Management Tools
By now, you should have a good idea of what features to look for in single family property management software. To make the job easier, we’ve put together a list of the most valuable capabilities and the top software options out there for property managers in 2023.
Single-Family Property Management Software: Top Features
Your list of must-have features should help you with both the general tasks of running a property management business and the unique challenges that come with managing single-family properties. Specifically, keep an eye out for these capabilities:
Complete lead-to-lease services that include listing syndication, showing coordination, a reliable application management system, a way to conduct fast and thorough background checks, and the ability to create, share, and sign agreements digitally
Online rent collection, or epay that lets you track payments, automatically send reminders when rent is due, and connect payment details (for both rent and other fees) to your accounting system.
Rental property accounting that you can use to automate day-to-day bookkeeping, file your taxes digitally (with the option to prep tax forms before filing opens), and generate reports right from your software solution
Maintenance management through a vendor and invoice tracking system, online portal for repair requests, 24/7 maintenance contact center or, ideally, a combination of all three
Communication portals that serve as the go-to tool for communicating with residents both individually and through general updates to entire communities. Also look for similar client portals for communicating with owners that they can use to find the information they need without having to reach out to you directly.
Inspection tools that make it easy to document any damages, conduct walkthroughs anytime using your mobile device, and store documentation and notes so they’re accessible through your property management platform on any device.
An open platform supported by a broad ecosystem of partner apps, so it’s easy to integrate the tools you’re already using with your property management software of choice and introduce additional software seamlessly whenever the need arises.
For a deeper dive, read more about the top single-family property management software features.
Single-Family Property Management Software: Our Picks
There are plenty of software options out there that each bring their own strengths and pitfalls to single-family property management. Here are some of our top picks based on key features and overall value for your money.
For a complete look at these solutions, read our post on the 7 best single-family property management solutions for 2023.
Buildium® for all-in-one property management: Buildium combines all the features mentioned above, plus a lot more in one comprehensive package. Built with specialized property management workflows in mind, Buildium’s toolkit can save you time and unlock new revenue streams at each stage of the management process. The Buildium Marketplace also gives you access to an ever-growing ecosystem of partner solutions.
Propertyware® for large property managers: Propertyware puts you in control with the ability to generate custom fields, dashboards and reports. Propertyware’s open API makes it easy to integrate other property management apps on top of a toolkit that includes day-to-day management, portfolio-level accounting and a unique solution to expand your business across multiple regions more efficiently.
ManageCasa® for a la carte property management tools: ManageCasa’s software caters to a wide range of property types, from single and multifamily properties to self-storage facilities and student housing. Their tools can help you with a range of management tasks, including leasing, tenant and owner communication, accounting, digital rent payment, and listing syndication.
PropertyBoss® for a customizable property management option: With PropertyBoss, you can choose from standardized features or customize your software to define workflows specific to your business, set up a tenant portal, and create specialized reports.
Avail® for landlords: If you have a smaller portfolio and own the properties that you manage, Avail might be a good option for you. Avail’s features are mostly focused on the tenant experience and include listing syndication, tenant profiles and screening, online payments, maintenance tracking, a tenant portal, and accounting capabilities.
Stessa® for real estate investors: Stessa’s software is geared toward real estate investors, so it’s a good option if you manage properties that are part of your own investment portfolio. The software’s capabilities fall into six main categories, all with an investor focus: asset management, bookkeeping and accounting, reporting and taxes, banking, online rent collection, and tenant screening
Hemlane® for out-of-the-box software: Hemlane is a solid option if you’re looking for software that prioritizes ease of use. In their basic plan you’ll have access to rental advertising, maintenance and leasing tools, an online rent payment option and the ability to automate some operations. Their higher tier plans include e-signatures, state-specific lease templates, discounted legal advice, and access to local leasing agents and vendors.
The Best Single-Family Property Management Software
The software you should choose ultimately depends on your priorities when it comes to property management. Comprehensive software can save you time and money in more areas of your business, with the added benefit of having a single solution to manage most of your operations.
More specialized or simple solutions can help you hit the ground running if you want support in a specific task. This can be an effective strategy, as long as you still provide a seamless, personalized experience that most single-family renters are looking for.
Whatever option you decide on, be sure to test out the software with a free trial, if it’s available, and follow the five steps we’ve outlined above to keep your tenants happy, owners supported, and properties well-managed.
