What Are the Key Differences Between Rental Properties and Apartment Complexes?
If you have spent any time in the real estate market, you will probably hear the terms “rental properties” and “apartment complexes” being used separately. Depending on the context of the situation, they might even be used interchangeably. Once you see the key differences between the two, as outlined in this brief article, you will see that it is all a simple matter that is easy to understand.
An apartment complex can be defined as a housing unit that only occupies a part of an entire building on a single-level. It is meant to define a specific type of housing that a tenant can live in.
A rental property, on the other hand, can be defined as a property from which an owner receives monthly payment from the tenant in exchange for being able to live in the property.
What is the key difference between them? The only major difference is that a rental property encompasses any kind of housing. This can include a townhome, fully-detached residential home, an apartment complex, a condo, and so on. It is any kind of housing that is made available for rent.
At the same time, there are some general differences in the way that they are handled with respect to rentals. Although apartment complexes are available for rent, they are usually provided by the manager of the entire apartment building. They are responsible for setting the rental prices and maintaining the building to make sure that everything is in working order. Depending on the nature of the apartment complex, the apartment is usually part of a chain that encompasses several buildings within a city or across cities. This means that you are paying rent to a company. Rental properties are usually referred to as housing properties—mostly semi-detached and detached homes—that are available for rent by the individual who owns the house. Owners usually charge a monthly rental price that allows for the mortgage price of the property to be paid while pocketing a profit from the tenant’s payment. The rental agreement helps to ensure a working relationship between the owner and the tenant. People who invest heavily in the real estate market may choose to own multiple properties that they then make available for rent. If the right properties are chosen, this can result in a passive income opportunity that benefits the owner for a sustained period of time.
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