The rental market is constantly evolving, and investors must keep their pulse on the latest in the industry to ensure they’re making smart investment decisions and offering appealing units to support high occupancy rates. Currently, one of the hottest trends is lock-off residences. In this blog, we’ll explain the characteristics of these types of properties, how they work, and why they might be a good investment.
What Are Lock-Off Residences?
Lock-off residences refer to properties where one or more rooms can be rented independently from the rest of the home or condo. Each section can act as its own separate unit, fully equipped with essential amenities like a bathroom, bed, and a kitchen or kitchenette. In a lock-off residence, each suite or section of the property should have its own private entrance. One side of the unit may be larger and offer more amenities, like a living space, which appeals to long-term renters. The other side may be more streamlined and better for short-term stays.
Why Are Lock-Off Residences Becoming More Popular?
The demand for lock-off residences is growing among rental investors. Here are some of the main reasons why they are appealing.
Versatility
Investors favor lock-off residences because of their flexibility and versatility. This allows investors to reside in or temporarily stay in one part of the unit while renting out the other side.Or, the owner can enjoy the entire property if it’s not currently occupied.Lock-off residences might be a good idea for those who are new to rental investing, as they can offset or cover the cost of their own housing expenses with payments from the tenant in the other unit.
Higher Income Potential
In addition, rental investors have the chance to boost their income potential when renting out lock-off residences. If they don’t decide to reside in one of the sections, they can rent out both sides of the property for higher income. This also means they can accommodate multiple types of tenants and renters simultaneously, changing the property’s configuration as needed to meet the current demands. As a result, property owners can maximize occupancy rates. For instance, they can choose to rent out each suite separately or as one single unit based on the types of inquiries they receive from interested tenants.
Higher Property Value
Aside from the immediate benefits of additional rent payments, lock-off residences can enhance a property’s overall value. If you ever decide to sell, this can make the house or condo more attractive to future investors.
