Renting allows people to live in homes that they cannot afford or do not wish to buy. This can happen for a variety of reasons, such as job relocations, spending a year or two abroad or inheriting family property, but the flexibility to move on to something else at any time means renting is an option for many.
For investors, rental properties offer a way to generate income and build wealth over the long term. There are a range of different types of property that can be rented, such as apartments, single-family homes, condominiums and even land. The tax treatment of rental properties varies according to ownership structure, material participation and personal use, as well as a variety of other considerations and expenses.
Apartments are typically owned by for-profit businesses and include both single-unit apartments and multi-unit buildings. Individuals, however, own a smaller share of these properties, owing one or two units on average. In contrast, for-profit business owners of multiple units own a much larger share than individuals of single-unit apartments.
Single-family homes, or houses, are stand-alone residences with direct access to the street and usually a plot of land. These homes are more expensive than apartments and condos, but they offer space and privacy.
Condominiums are similar to apartments, but they are individually owned by residents and may be located within a larger building or complex. These properties can include amenities such as pools, gyms and covered parking. Property rentals