Photo courtesy of Enclave Property Management By Forum staff November 26, 2022 at 5:23 AM Share ...

Residential rental property is property used as dwellings for rental occupants. By law, property must derive 80% of its income from residential purposes to qualify as residential for tax purposes.

The reason is economy of scale. Management dollars might be higher for an apartment building, but you have many more sources of revenue in a 20-unit building than a single home.