Houses for rent by owner occupy a large number of the rentals available nationwide. In fact, less than one-fifth of all rental properties are owned by for-profit businesses of any kind, according to a recent report published by Pew Research.
But, how does a rental by owner differ from other types of rentals on the market?
We dug deeper to take a closer look at FRBO homes...and we're sharing what we found here. Read on to find out more about the (sometimes surprising) info we uncovered!
What FRBO Really Means
You've heard the term "for rent by owner" a gazillion times. But, what does this term really mean? And, how does a property rented by an owner differ from other types of rentals available?
"For rent by owner" simply means that a property is available for rent through an individual owner, or landlord, rather than a property management company or real estate corporation.
Renting by the owner allows the landlord of a property to abide by slightly less restrictive guidelines. And, it gives many people the freedom to invest in their future by acquiring one or two rental homes for a reasonable price...that they then use to turn a profit.
It can be a solid way to invest in one's retirement...and often is used to make big money in a short amount of time. But, a few wrong moves can cost an individual renter dearly. In fact, many independent rental property owners say that just a few missed payments can create a major strain on their own personal finances.
But What Does for Rent by Owner Mean for Tenants?
For tenants, an FRBO property is often a more desirable option. This is because, like landlords, renting from an individual can mean more relaxed rental requirements for the tenant, as well.
Often, when a tenant has one or two potential roadblocks to the renting process, it's easier to explain what caused these issues to an individual rather than a mega-corporation.
And, because owners are likely eager to rent their properties, it's sometimes easy to sway an independent landlord in areas that a multi-unit complex may not budge. For example, you may be able to get away with bringing along your four-legged friend with an FRBO landlord.
Individual landlords have room to negotiate...at least as far as their personal circumstances allow. This means slicing a couple of hundred bucks off the rent or allowing extended time to pay a deposit isn't always out of the question.
However, individual owners often have more at stake than owners of multiple properties. So, budging even slightly can leave them open to take a greater loss if the tenant doesn't come through on their end of the bargain.
Learn More About Houses for Rent by Owner
If you want to learn more about the risks and benefits of listing houses for rent by owner, we're here to help.
As an individual landlord, you may be feeling overwhelmed, overextended, and alone. The good news is that you don't have to feel this way any longer.
Home River Group is an established and experienced property management and investor services provider. We make it easy to manage one or more rental properties.
Contact Home River Group today to learn more and discuss your options!