There are a few noteworthy differences between residential and commercial real estate investments.
There are a few noteworthy differences between residential and commercial real estate investments. Residential, which can range from two-family rental properties to 200+ unit apartment buildings, tend to be more management intensive than commercial properties. Leases are generally signed on an annual basis which convert to month to month, making turnover common. In a 200-unit property, it could mean that an owner is dealing with calls from 200+ different people any given week. That said, most investors understand the basic premises of leasing residential properties and therefore, are drawn to the simplicity of residential investing.