|
Welcome back! What did you think of our Property Management Software?
Are you subscribed to our feed and receiving email updates? |
Rental Property
RENTAL PROPERTY
Rental Property: Who owns the USA’s Rental Properties?
Individual investors own most rentals.
In 1991, individual investors owned 92 percent of the Nation’s rental properties. These investors may be one person, a married couple, or the estate of a deceased person.
The percentage of rental properties owned by individual investors, however, differed for medium- and large-size properties. Individual investors owned three-fourths of 5- to 49-unit properties and one-fifth of properties with 50 or more units.
Incidentally, most properties with 50 or more units were owned by partnerships (56 percent), either limited or general. The top chart on the back shows who owns differ-ent types of rental properties.
Half of all rental properties are financed with a mortgage.
Fixed-rate amortized mortgages were far and away the most popular way of financing rental property. Seven in ten mortgaged rental prop-erties had such a mortgage. The bottom chart on the back shows how rentals were financed.
Adjustable-rate mortgages (ARM’s) also were popular – they were the second most used method of financ-ing for four of the five kinds of rental properties.
The exception was large rental properties (50 or more units), where balloon mortgages were the second most popular method.
Mobile homes differed from other rentals in one key respect. Only one-fifth carried a mortgage, far below the rates for other types of properties. That’s because mobile homes not attached to the ground on a foundation may be purchased using commercial financing, which is similar to an auto loan.
More information about Rental Property:
The data in this Brief come from the 1991 Residential Finance Survey, which collected information about nonfarm, privately owned, residential properties. If mortgaged, a property is defined as all the buildings and land covered by a single first mortgage. All other properties are defined by the owner
| Who Owns Rental Properties | |||||||
| Percent distribution of the Nation’s rental properties, by type of owner: |
1991 |
||||||
| Type of owner |
Type of rental property |
||||||
|
50 or |
|||||||
|
All rental |
1 to 4 |
5 to 49 |
more |
Condo- |
Mobile |
||
|
properties |
units |
units |
units |
miniums |
homes |
||
| Individual investor |
91.6% |
92.5% |
74.8% |
19.1% |
90.5% |
97.2% |
|
| Limited partnership |
1.1 |
0.6 |
7.0 |
40.8 |
1.4 |
0.3 |
|
| Joint venture |
0.9 |
0.9 |
1.5 |
2.8 |
0.8 |
± |
|
| General partnership |
1.4 |
1.1 |
6.6 |
15.5 |
2.1 |
± |
|
| Real Estate Investment Trust |
0.2 |
0.2 |
1.0 |
0.9 |
0.2 |
0.4 |
|
| Life insurance company |
± |
± |
± |
0.5 |
± |
± |
|
| Financial institution* |
0.4 |
0.3 |
0.5 |
1.8 |
0.8 |
± |
|
| Real estate corporation |
0.8 |
0.6 |
2.7 |
4.1 |
1.5 |
0.5 |
|
| Corporation (other than real estate corp.) |
1.8 |
1.7 |
3.5 |
5.4 |
1.8 |
1.4 |
|
| Housing cooperative organization |
± |
± |
0.5 |
4.3 |
± |
± |
|
| Nonprofit or church-related institution |
1.1 |
1.3 |
1.3 |
4.0 |
0.2 |
0.3 |
|
| Fraternal organization |
± |
± |
± |
0.2 |
± |
± |
|
| Other |
0.6 |
0.6 |
0.5 |
0.6 |
0.7 |
± |
|
| *Other than life insurance. ± Represents zero. | |||||||
Note: These percentages total 100 percent of property owners/managers who responded to the question on who owned the property. Twelve percent of owners/managers who responded to the survey questionnaire did not respond to this question.
U.S. Census Bureau, Department of Commerce
| How Rental Properties Are Financed | ||||||||
| U.S. rental | U.S. rental properties | Percent distribution of mortgaged | ||||||
| properties: | with a mortgage: 1991 | rental properties, by type of mortgage | ||||||
| 1991 |
Fixed |
Fixed |
||||||
|
Percent of |
Adjust- |
|||||||
|
rate |
rate |
|||||||
| Number |
Number |
all rental |
amor- |
short term |
able |
|||
| Type of property | (thous.) |
(thous.) |
properties |
tized |
(balloon) |
rate |
Other | |
| All rental properties | 14,850 |
7,435 |
50% |
71% |
6% |
22% |
1% | |
| 1 to 4 units |
11,285 |
5,656 |
50 |
72 |
6 |
20 |
1 | |
| 5 to 49 units |
557 |
387 |
70 |
58 |
10 |
30 |
1 | |
| 50 or more units |
65 |
57 |
88 |
63 |
21 |
14 |
2 | |
| Condominiums |
1,588 |
1,059 |
67 |
63 |
3 |
32 |
1 | |
| Mobile homes |
1,355 |
276 |
20 |
84 |
7 |
9 |
0 | |
| Note: Mortgaged properties exclude properties with home equity lines of credit only. | ||||||||
U.S. Census Bureau, Department of Commerce
This blog post for Real Estate Professionals, Investors, Landlord, Property Manager, and Property Management Companies is brought to you by SimplifyEm Pay Rent Online and Property Management Software
This is a blog post for Real Estate Professionals, Investors, Landlord, Property Manager, and Property Management Companies. Rental Property is brought to you by SimplifyEm Pay Rent Online and Property Management SoftwareYou might also want to read:
- 30-Year, 15-Year Fixed-Rate Mortgages Continue to Inch Downward August 19, 2010: Freddie Mac today released the results of its Primary Mortgage Market Survey® (PMMS®), and for yet another week, the fixed-rate mortgages reached another low, while the 5-year......
- 2010 First Quarter Real Estate Market Results PERMITS - The number of permits issued for construction of new housing units in the first quarter of 2010 were up 8 percent from the previous quarter, at a SAAR......
- FHA Rules for Investors More Strict than Fannie Mae The Federal Housing Administration has released its long-awaited rules on condominium loans. On one hand, the new rules allow lenders a lot of more flexibility, but on the other hand,......
