Multi-family rentals: 2 BR/1BA and up vs. 1BR/1BA or Efficiences

[Chris Troutner]

I wanted to get some opinions based on experience with renters comparing 2-bedroom units (and above) vs. 1-bedroom and studios.  I currently have a duplex (each side is 2Bd/1Ba) under contract.  I'm looking at additional multi-family properties (Pinellas County and Pasco County, FL). My initial thinking was to try and stick with properties that a family could rent out, thinking this would be a more dependable tenant population. And a population less prone to trash my property. I have avoided looking at duplexes, triplexes, etc. that only have 1-bedroom units or studios, but I'm wondering if I should reconsider?  Single people need places to live too. I know it depends on many factors, but I'm curious about your experience with tenants and 1-Br and studio rentals.  Thanks!

[Bill Pate]

@Chris Troutner you need to learn how to screen tenants.  If tenants are trashing your units it's because you are not picky enough.  In 10 years managing my own properties I have never had someone trash a unit or even miss a rent pavement.  Personally I use a product called smartmove from transunion.  I tell the prospective tenants that I expect them to pay the $35 application fee and once accepted I will deduct the cost from their first months rent.  By doing this it really weeds out the people that aren't serious and it gives me instant visibility into credit, criminal, and eviction check nationwide.  Then I verify they have at least three times the rent in take home pay and I check their current residence for cleanliness.  This has not failed to produce a good tenant yet.  Sometimes the property stays vacant longer, but in the long run I have less turnover and fewer repairs when there is a vacancy.