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What is a Duplex?: A Guide for Real Estate Beginners

Wondering, “what is a duplex?” Duplexes are a type of housing that strikes a perfect balance between privacy and shared living. Their versatility makes them popular with residents and, by extension, with investors. Let’s explore their features and how they can fit into your investment goals. Read below to learn more.

Article Contents

A two-floor duplex with a patio on both sides

Key Features of a Duplex

What is a duplex, anyway? Washington, D.C property management companies often manage duplexes, so we can walk you through the biggest features that differentiate this multi-family property from other housing types.

  • Each Unit Is Physically Connected: A duplex has two units. Each could be side by side, each sharing a wall. Or, they could be stacked with one on top of the other in two stories.
  • Private Outdoor Spaces: Many duplexes come with private yards, gardens, or patios for each unit. Then, the residents can use this space for relaxation or entertaining.
  • Separate Utilities: Many times, each unit can have its own utility meters for water, electricity, and gas. Since each unit has separate utilities, tenants are only responsible for paying for their own usage.
  • Separate Rooms: Furthermore, each unit typically has separate kitchens, bathrooms, and living rooms.
  • Parking Space: Most duplexes offer private parking, either in a garage or on a driveway, for each unit.
  • Built-in Storage: Usually, duplexes must include built-in storage spaces such as closets, attics, or basements that maximize living space.

A contemporary duplex with clean lines, a shared driveway, and minimalist landscaping.Benefits of Investing in Duplexes 

Duplexes have numerous benefits, including:

More Bang for Your Buck

Duplexes tend to cost less than single-family homes because they share spaces. So, you can get more square footage, and more tenants to rent from, for a potentially lower price. This makes duplexes a smart investment in terms of value.

Ability to Use Your Investment for Yourself

Having two separate living spaces can be efficient for you in multiple ways. It offers you the possibility to rent one unit and live in the other yourself. This way, you can help pay off the mortgage and have housing for yourself at the same time.

Great for Beginner Investors

If you want to dip your toe into multi-family investments but want to smart small, duplexes are a great way to go. They give you just slightly more work to juggle than a single-family home, but not as much as a traditional apartment. As such, they can serve as a great stepping stone to getting involved in bigger investments.

A two-floor duplex with a patio on both sidesTips for Buying and Renting Out a Duplex

Once you understand what a duplex is, it becomes crystal clear why investing in one is a smart move. But how do you go about buying and renting one out? There are a few tips you should remember to optimize your success:

Do Your Due Diligence Before Buying

It’s tempting to cinch the seemingly best deal that comes along, here and now. However, always think carefully before you get in too deep. Be sure to research the viability of the duplex’s location and layout to make sure there’s a market for it.

Furthermore, as you assess the asking price, don’t be fooled by what looks like a steal. After all, something might look cheap on paper now, but it won’t feel so cheap when you’re racking up repair and upgrade bills. Meticulously scrutinize the property’s condition from top-to-bottom, every nook and cranny, before moving forward.

Know Your State’s Laws and Regulations Surrounding Housing.

Each state and locality have its own set of laws and regulations. So, familiarize yourself with security deposits, the Fair Housing Act, eviction procedures, zoning regulations, tenant rights, and other legal staples.

Set a Competitive Rental Rate

Also, you should ensure your rental rate is competitive with your current local market price for similar properties. In addition, although you want your price to be affordable, don’t forget to consider factors like expenses. These include your mortgage, property taxes, utilities, maintenance, etc.

Get Your Property Picture-Perfect

Aesthetics are everything. Like it or not, many people do judge a book by its cover. So, it’s critical that you decorate your property to appeal to potential tenants. You can easily achieve this by applying a fresh coat of paint, adding some landscaping work, or making some other upgrade. Also, make time for repair and maintenance; see to it that plumbing, appliances, and the electricals are functioning correctly.

Marketing Your Rental

Once you’ve fully prepared the house to be rented, it’s time to take professional photos and videos. Be sure to write an attention-grabbing rental listing that stands out from the crowd. Post it online on multiple sites so that it gains online traffic. Every view gets you one step closer to the lead you need.

Consider Having a Property Manager Manage Your Duplex

Duplexes can be a great investment choice because they can cost less to buy than a single-family home, but give you double the rent to earn from. If you play your cards right, you could have a steady stream of extra income coming your way.

That said, managing a duplex can be overwhelming. You’ll need to create a lease, screen tenants, market the property, handle maintenance promptly, address repairs, more. All throughout this, you’ll need to ensure you’re following local laws and regulations. But why go through all that trouble when there are professionals who can help?

With the right property management company, you can have all these responsibilities taken care of for you. That’s where Bay Property Management Group comes in. We have years of experience in the real estate industry and manage over 6,000 units. Our specialists are trained to handle virtually every aspect of the rental experience, from aggressively marketing properties to ensuring tenants’ homes are kept safe and habitable. This way, your tenants stay happy, and you stay profitable. Contact us today to minimize your landlord responsibilities.