With Hawai‘i’s housing shortage and high cost of housing, there’s usually a strong demand for rental units. Unlike a commercial property that can remain unrented for many months, residential units often fill quickly.
No complex lease structures or custom spaces
Commercial property like office buildings and retail centers have complex lease structures that require in-depth knowledge. In addition, commercial tenants often have specific and costly buildout requirements. By contrast, multifamily tenants all need the same basic improvements and there are standardized multifamily leases, making them much simpler.
Multiple income streams
Multifamily properties generate income from multiple units, thereby negating the impact of any one vacancy and providing steadier rental income than single-family properties with just one renter.
Higher income potential
Multifamily properties tend to generate higher income than comparable single-family properties, especially in areas of strong demand.
Efficient to manage
With multiple units in one location, managing the property can be more efficient, reducing the time and effort needed for oversight and maintenance.
Investors who upgrade their properties can often collect higher rents. And when they sell, appreciation on the property can result in substantial capital gains.
Easier to sell
Compared to a commercial property which may have a limited pool of buyers, multifamily properties are often sought after by investors, resulting in quick sales.