What Is a Multifamily Home?

If you’re looking to rent a new place, you’ve probably come across lots of different housing options, from apartments and condos to single or multi-plex houses. The jargon associated with the rental housing market can be intimidating, but if you do some research, you’ll be very well prepared to take on the market and find a great place to live. Here’s everything you need to know about multifamily homes.

What is a multifamily home?

First, the basics: What is a multifamily home, exactly?

Put simply, a multifamily home is a residential building that includes more than one unit of housing and can therefore accommodate multiple sets of renters. Each unit in a multifamily property will have its own kitchen and living room as well as one or more bedrooms and bathrooms.

Real estate investors often like to buy multifamily properties in order to generate income. Some landlords will live in one unit of a multifamily property and rent out the other units, while others live off-property altogether. Purchasing a multifamily property is sometimes an attractive option for landlords because they can use the projected income from renting the units to qualify for a higher mortgage loan.

If your landlord lives in one of the units of a multifamily property, you may find that you get more responsive service. Who knows, you may even end up becoming friends with your new neighbor!

What is the difference between a multifamily home and a single family home?

It is not always clear right away whether a property is a single family or multifamily home since they share some characteristics.  It is possible to rent all or part of a single family home, and single units can share walls with other units. However, there are a few distinguishing characteristics. Multifamily homes have their own entrances, bathrooms, and kitchens. Each unit typically also has its own address.

Generally speaking, a single family home or dwelling is owned and maintained as a single unit. That means that it does not share any major facilities or utilities like bathrooms or heating with other units, and that it has direct street access. However, some jurisdictions do have slightly different definitions of single family or multifamily homes. For example, in some places, mother-in-law suites or basement suites can be incorporated into one single family unit. However, this does not include condominiums or short-term accommodations like inns and hotels.

Types of Multifamily Homes

There are several different types of multifamily homes. You may run across a number of these types of homes in rental listings. Some of the most common types of multifamily homes include:

Townhouse

Townhouses are multi-floor homes, usually with two or three stories, where multiple home units share an interior wall. Older townhouses tend to be rowhouses, while newer units can be found in cities or suburbs and tend to have a distinctive look and share a homeowners association (HOA).

Duplex

A duplex is like a townhouse, except that units can be on different floors rather than side by side. Duplex units often share a front door, but each unit has its own entrance inside the building.

Semi-Detached House

A semi-detached house is a single-family home that shares a wall with another home, not unlike townhouses. The term “semi-detached” distinguishes this style from detached houses, which is a regular home that is not attached to any others.

Apartment Complex

Apartments are commercial units with at least five units per building. Apartment complex residents typically share access to amenities such as parking garages, playgrounds, gyms, patios, roof decks, and pools. Apartments usually share a main entrance, which may have a front desk, but each unit has its own entrance inside the building.

The pros and cons of living in a multifamily home

If you’re in the market for a rental to live in, you may be looking at different types of multifamily units as well as detached homes. Here are the advantages and disadvantages of living in this style of housing that you should consider before deciding on a place:

Pros:

• Neighbors: Living in a multifamily home means you’ll have at least one or more close neighbors, which can contribute to a family-friendly environment.
• Cost: Some multifamily homes, especially apartments, are smaller in scale than a detached home, which means you’ll likely save money on your rent.
• Responsive Landlord: If your landlord or building manager does live on-site, you may find that they’re more responsive to your requests and to dealing with repairs.
• Shared Amenities: Many apartment buildings, condos, and other styles of multifamily dwelling have shared amenities like a pool, front desk, or patio. While you may have to pay more in rent or pay an amenity fee to access these features, it’s still less expensive than having one for yourself.
• Space: In contrast with having roommates, living in a multifamily dwelling allows you to have your own kitchen, bathrooms, and living space while still saving some money on rent.

Cons:

• Noise: Living in a multifamily dwelling means having more people around, which can also mean more noise, especially if you have shared walls or floors and ceilings. Learning to navigate your relationship with other renters in your building often includes communicating about when their noise levels are too high, especially at night. This situation can be even more difficult if you work from home and need quiet to concentrate.
• Size: The size of multifamily dwellings can vary widely, of course, but typically, they are smaller than a detached house. Take into consideration how many people will live in the home and what kind of home office or other space you might need.

If you’re in the rental housing market, you may be wondering if a multifamily home is right for you. Knowing more about the pros and cons as well as types of multifamily homes that are out there can help you make the right choice when renting.