Residential Income has long been the most misunderstood Property Type. What makes a home qualify as an “income” property? If you could rent any property, couldn’t any property also be income producing?
REcolorado Matrix follows the RESO Data Dictionary definitions for Property Types, which provides a clear and consistent definition for a “Residential Income” property. You can easily determine which Property Type to use based on the number of units for sale.
One unit is for sale = Residential
Use the Property Subtype to provide more information about the type of property available, including Condo, Townhome, and Multi-Family. Then, choose the Structure Type that represents how the home looks. Learn more in New REcolorado Matrix: Where is Single-Family Attached?
2-4 units are for sale = Residential Income
The definition of the Residential Income Property Type is:
Multi-family properties of two to four (2-4) units, which may potentially generate income for the buyer.
Use this Property Type when the entire Duplex, Triplex, or Quadruplex is for sale. If only one unit is for sale, use the Residential Property Type.
More than 4 units for sale = Commercial
Use the Property Subtype “Multi-Family” to indicate that the commercial property is an entire structure or complex for sale with five or more (5+) units that are individual dwellings.
If you’re selling a home with an accessory dwelling, could it be considered a duplex? The correct Property Type is Residential. Even though the accessory dwelling could be rented separately, the primary structure is a single-family house. Therefore, the listing belongs in the Residential Property Type.
You can indicate that a home has an accessory dwelling, carriage house, in-law suite, or other livable structure during Residential Listing Input. Specifically, this information can be entered in the Parking and Structures tab under the Livable Structures section. Use Also Marketed As to indicate that the home may be used as a Residential Income property.
As you prepare to enter your listing into REcolorado Matrix, review the Dictionary of Property Types and Subtypes and the Square Footage Companion for helpful guidelines and definitions. If you’re not sure how to categorize a property, contact REcolorado Customer Care at 303.850.9576, option 1, or support@REcolorado.com.