Renting multifamily residential homes have various needs in order to make profits for the individual owners when managed by real estate companies. There are several approaches in considering the actual income of the multifamily units. There are two types of multiple living units: the larger homes that are rented by the room that houses two or more unrelated adults or the multifamily unit under individual ownership. Many college towns have both of these because the high need of housing. There are several costs in renting these that must be considered if rented by the owner or real estate companies. One approach is the sale comparison approach. It is often difficult because many of the multifamily units are not similar enough to compare which makes appraisals difficult to do. Often individuals buy these homes as a one family home and turn them into multifamily units. Their finding was that this would not be an accurate way of determining income (Dettbar and Johnson 41).
