There are many different types of apartments and multifamily buildings. Investors should be aware of the many types of apartments so that they know their investment options.
Also, if you’re a renter or looking to become one, it’s a good idea to understand the different types of places that may be available to you. Understanding the different types of apartments, including size and layout, can help maximize your use of time when deciding what apartments to choose from.
Here’s a breakdown of some common apartment types to help you learn how to identify the differences between them.
Studio
A studio apartment is a single room. These types of apartments are usually a multi-purpose space with an open-concept design. It is small though efficient and often the most affordable of all apartment types. A studio apartment consists of one room that serves as an open living space. This means your living space, kitchen and sleeping area are together in one space with a separate door that leads to a bathroom. Studio apartments tend to be between 300 and 600 square feet.
Alcove studio
An alcove studio is similar to a traditional studio, except it includes a separate nook (or alcove) for a bed. Since alcove studios allow for separation of the sleeping area, it can create more privacy.
Convertible apartment
This is a studio that is large enough to be converted into a one-bedroom, whether by constructing a wall or putting up a partition (such as shelving units, room dividers, or curtains). While this can make the overall apartment feel smaller, it separates the space into living and sleeping and it provides privacy. A convertible apartment has extra space that you can wall or curtain off to create another bedroom or separate space. It may require you to divide the living room into two rooms, so that one can be a bedroom.
Micro apartment
Micro apartments are essentially mini studios, they are one room, usually less than 350 feet. They are sometimes smaller than a studio, complete with a sitting area, bed, bathroom, and kitchenette rather than a full suite of appliances. In areas of high density and skyrocketing rent prices, micro apartments are built to help provide livable units to interested renters.
Loft
A loft apartment is usually a large room with moderate to very high ceilings. Loft apartments are common in commercial buildings that have been renovated and converted into residential apartments. Lofts are typically seen in neighborhoods with an industrial past or with available historic buildings that were formerly workplaces from decades ago.
One-bedroom apartment
A standard one-bedroom apartment contains a bedroom that is separate from the kitchen and living room.
Duplex
A duplex is a dwelling that is split into two separate living units. They are most commonly found in a row house or a free-standing house but are occasionally in apartment buildings. The two units have their own entrances and are typically similar in size. The units in the duplex can be side-by-side or top and bottom.
Triplex
A triplex is a single building that is split into three apartment units. Like a duplex, these apartment units have their own entrances and are typically similar in size and have multiple living spaces.
Co-op
A cooperative housing (“co-op”) is an apartment where residents buy in to become a part-owner of the entire property. In addition to mortgage payments, residents also contribute to shared costs like maintenance fees and lifestyle fees if the building has special features (such as a gym, pool, rooftop or patio space, etc.). Co-ops are governed by a board and have an approval process for new tenants. They are more stable than renting but there are rules to abide by and building issues must be voted on which can be a bureaucratic process and the rental process may be more tedious.
Garden apartment
A garden apartment is a ground floor or basement apartment that has access to outdoor space that is private to the unit. Having your own outdoor space can be fascinating, but these apartments can occasionally have issues with home security, pests, and dampness. If you can’t visit the apartment to scope out the situation yourself make sure to ask your realtor very specific questions about these potential problems.
High-rise apartment unit
High-rise buildings commonly have 12 or more stories. They have at least one elevator and often have multiple to service the high number floors and tenants. Individual apartment units within high-rises can vary widely, but high-rise buildings are usually associated with accommodations that lean more on the luxury side.
Mid-rise apartment unit
A mid-rise apartment unit is typically found in a building that is 5 to 11 stories high. These buildings usually have one elevator and are commonly found in urban areas.
Low-rise apartment unit
A low-rise building has no more than four stories, and sometimes doesn’t include an elevator, but some low-rise buildings with specialized access offerings do.
Railroad apartment
A railroad apartment does not refer to one located near a railroad but one wherein the rooms are lined up like train cars, you have to walk through each room to get to the next. They are usually narrow and long, consisting of three to four rooms. Railroad apartments are often found in smaller and older buildings.
Walk-up apartment
A walk-up apartment is located in a building that does not have an elevator, but makes use of stairs. A walk-up apartment is typically found in smaller buildings with few tenants and fewer individual units.
Condo
A condominium or condo is a unit that is owned individually, so it is more independent than a co-op situation. Buying a condo can be a nice option full-time or part-time as a getaway, they can be rented out when you’re not there.
Knowing the differences between types of housing that are available to you is key when searching for a rental. Take time to understand your options so you can find the right place for your situation and budget.
As informed investors we should understand the risks associated with real estate investing and that there is no guarantee. Please do your due diligence.
