Also known as a townhome, a townhouse is a type of real estate that has multiple floors and shares at least two of its walls with other residences, according to Rocket Mortgage. These homes are typically tall and thin, and you’ll often see them attached to other townhomes in a long row.
Townhouses are usually individually owned, feature their own entrance(s), and may include outdoor space. This type of property is often found in high-density, urban environments. However, the popularity of townhouses has spread to the outskirts of cities and suburban areas.
Bankrate explains that a townhouse is a style of residence, so its ownership structure can take several forms. A townhouse “can be a condo if it’s part of a condominium community with the associated rights or planned-unit development (PUD).”
Both townhouses and condos can be single-family or multifamily properties. When they’re multifamily properties, the individual floors are broken into separate units and rented out.
Renting out a townhouse can unlock a new revenue stream, but landlords should be aware of the potential drawbacks as well.
As Bankrate notes, there are four major benefits to owning a townhouse:
Bankrate highlights three common drawbacks of owning a townhouse:
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