What Is a Single Family Rental Property?

A single-family rental (SFR) property is a distinct segment within the residential real estate market, popular for individuals and families. These standalone homes are rented to a single household, generating income for investors. SFRs offer a unique living experience compared to multi-unit dwellings, appealing across the United States. Understanding their characteristics and operational aspects is valuable for both prospective tenants and property owners.

Core Definition and Structure

A single-family rental property is a standalone residential structure designed for exclusive occupancy by one household. This typically includes detached houses, townhomes, or condominium units rented entirely to a single tenant. Unlike multi-family properties such as apartment complexes or duplexes, an SFR has an independent physical structure, often on its own lot. Its design supports private living, with a singular foundation, roof, and dedicated utility connections, providing a complete, self-contained home environment.

Key Attributes

Single-family rental properties possess distinct attributes focusing on privacy and space. They typically include a private outdoor area, such as a yard or patio, for exclusive use. These homes feature individual entrances, so tenants do not share common hallways or lobbies. Dedicated parking, often a private driveway or garage, enhances convenience for occupants. The absence of shared common areas, like communal laundry or fitness centers, contributes to a more secluded living experience.

Tenancy and Operational Aspects

Single-family rentals operate with a single lease agreement covering the entire property for one household. Lease terms commonly range from 12 to 24 months. Tenant responsibilities often include paying for all utilities, such as electricity, gas, water, and trash services. Tenants are also responsible for maintaining the property’s exterior, including yard work like mowing lawns and clearing snow, along with handling minor interior repairs and general upkeep.

Landlords generally retain responsibility for major structural repairs, such as the roof or foundation, and the maintenance of mechanical systems like HVAC, plumbing, and electrical systems. They must ensure the property remains habitable and meets local housing codes throughout the tenancy. A security deposit, typically one to two months’ rent, is collected at lease signing to cover potential damages or unpaid rent. This deposit is usually returned to the tenant within 14 to 60 days after move-out, often around 30 days, with an itemized statement for any deductions.