What Are The Different Types Of Apartment Buildings?

Before investing in real estate, it’s essential to understand the various types of buildings. Usually, an apartment building is described by the number of units and floors.

Below are all the types of apartment buildings you need to know about as a landlord and that we as a trusted property management firm in Brooklyn manage.

Low-rise Apartment Buildings

A low-rise building typically has fewer than four floors, though some structures refer to them as three or fewer. These buildings are commonly spread out over a vast area since the number of units tends to outweigh the number of floors.

A suburban complex is one of the most common types of low-rise apartment buildings. This structure usually consists of multiple buildings with only a few floors each, with varying designs resulting in separate or connected units. Other low-rise buildings are row houses, townhouses, garden-style communities, and triplexes and quads.

Low-rise apartments would only have elevators if renovated to accommodate those with mobility issues. Also, single-family buildings have few amenities. Shared laundry facilities are sometimes provided in some buildings if the units don’t have laundry machines. On the other hand, there are recreation rooms, communal pools, and other perks in facilities with multiple units.

Low-rise buildings are often accessible to investors due to their lower cost. However, they do come with lower expectations of what’s included in the package. It can result in lower returns.

Mid Rise Apartment Buildings

One of the most desirable types of apartment buildings is a mid-rise building with between five and nine floors, typically having at least one elevator. It’s becoming more common for investors and tenants to prefer these types of buildings.

These types of buildings are commonly used as residential complexes. They are also widely used as college dorms, hotels, and affordable housing. Mid-rise buildings have excellent access to various restaurants, shopping, and entertainment areas.

People tend to prefer mid-rise apartments due to their accessibility and affordability. These types of buildings also come with various features, such as gyms and pools, and are relatively low maintenance. Young renters prefer these types of buildings over single-family homes.

Both builders and investors like mid-rise buildings as they offer better returns than low-rise apartments. Unlike those constructing high-rise structures, they do not have to pay costly permits and building expenses. Due to the increasing number of people living in urban areas, the demand for mid-rise apartments has become lucrative.

High-Rise Apartment Building

Another category is the high-rise buildings, which are at least ten stories tall and present different challenges when it comes to management compared to low-rise and mid-rise buildings.

They are commonly found in areas with a high population density and expensive land.

High-rise buildings are commonly used as luxury condominiums (learn how to maintain a condominuim) or apartments in urban areas. They can also be used as hotels or extended-stay rental facilities. Schools with large dormitories usually utilize high-rise structures.

Over the years, high-rise buildings have been used as residential residences in major cities across the U.S. Due to the increasing population and number of people living in these areas, the demand for high-rise apartments has increased.

One of the main advantages of high-rise buildings over land is their massive return on investment, though they have to deal with construction issues and may require special permission. Because of this, these types of structures are ideal for institutional investors and high-net-worth individuals. The units in these buildings tend to be very expensive, making them suitable for those who are looking for luxury accommodations.

Mix Use Buildings

It is a classification that’s not related to the building’s height. Mixed-use buildings are typically multi-tenant structures that have multiple tenants. They can have various types of businesses on the lower floors and residences on the upper ones which leads to multiple property challenges and requires a unique management approach.

A mixed-use building can be any structure used for multiple purposes, such as industrial, commercial, and residential. Usually, these types of buildings are composed of various tenants. Retail stores, restaurants, and service businesses are common combinations in mixed-use buildings.

Mixed-use buildings are also commonly composed of multiple tenants. In some cases, the buildings use horizontal lines to separate their various tenants. For instance, an establishment may have a residential complex at the front and businesses at the rear.

Mixed-use buildings can be found in various areas, such as college campuses, city centers, and suburban communities. These types of structures allow residents and businesses to access their establishments easily. Because of this, investors often like these types of setups due to the diversity of their tenants.