A client asked me this question today and here was my answer. Basically it comes down to the type of tenant. A tenant leasing a single family home is typically more stable (key word "family") where an apartment tenant is more transitional. So - on a tenant by tenant basis the single family tenant is more stable BUT if you have one vacancy you are 100% vacant vs. a duplex you are only 50% vacant. Our single family home tenants typically stay for 16 months where our average apartment tenant stays for about 10 months. Turn over is a much bigger factor on apartments vs. single family homes and turn over is a large uncategorized expense.
A client asked me this question today and here was my answer.
Basically it comes down to the type of tenant. A tenant leasing a single family home is typically more stable (key word "family") where an apartment tenant is more transitional. So - on a tenant by tenant basis the single family tenant is more stable BUT if you have one vacancy you are 100% vacant vs. a duplex you are only 50% vacant. Our single family home tenants typically stay for 16 months where our average apartment tenant stays for about 10 months. Turn over is a much bigger factor on apartments vs. single family homes and turn over is a large uncategorized expense.