Lessors of Residential Buildings and Dwellings Revenue Benchmarks
The average lessors of residential buildings and dwellings business in the United States generates $1.2M in annual revenue, according to the U.S. Census Bureau Statistics of U.S. Businesses (SUSB 2021). There are 54,064 lessors of residential buildings and dwellings businesses in the U.S., employing 337,014 workers with an average profit margin of 20.0%. The average employee in this industry earns $61K per year (Bureau of Labor Statistics QCEW 2023).
What Does a Lessors of Residential Buildings and Dwellings Business Actually Do?
Businesses that own and rent out residential real estate — apartment buildings, single-family rentals, multifamily portfolios. Include institutional owners, REITs, and mom-and-pop landlords.
Who buys: Tenants renting apartments or homes.
Average Revenue
$1.2M
per year
Profit Margin
20.0%
industry average
Revenue / Employee
$196K
per year
Total Businesses
54,064
in the US
Est. Owner Income
$244K
small business avg
Labor Cost
25.0%
of revenue
Avg Employee Wage
$61K
per year (BLS)
Market Saturation
16.3
firms per 100K people
How Much Do Lessors of Residential Buildings and Dwellings Charge?
Apartment building owners earn rental income minus operating costs. Cap rate (NOI ÷ purchase price) is the operative metric.
| Service | Typical range |
|---|---|
Cap rate — Class A urban | 3.5–5.5% |
Cap rate — Class B suburban | 5.5–7.5% |
Cap rate — Class C value-add | 7.5–10.0% |
Operating expense ratio | 35–50% of gross rent |
Gross rent multiplier | 8–14x annual rent |
Ranges based on industry rate surveys and typical published pricing. Actual quotes vary by city, business size, and job complexity.
Complete lessors of residential buildings and dwellings business plan
A 12-section data-backed business plan for a lessors of residential buildings and dwellings business — executive summary, market analysis, competitive landscape, revenue model, 3-year financial projections, operations, marketing, staffing, funding request. Pre-populated with real Census, IRS, and BLS data on this industry. Free to view.
Cost Structure — Where Every $100 in Revenue Goes
Approximate P&L breakdown for the lessors of residential buildings and dwellings industry. Labor share and net profit are grounded in Census SUSB and IRS SOI data. Other lines are split using sector-typical ratios.
| Category | Per $100 revenue | Per typical business | What's in it |
|---|---|---|---|
Property expenses | $8 | $101K | Maintenance, repairs, property taxes, HOA fees, utilities on managed properties. |
Wages & benefits | $25 | $306K | Payroll for all employees at the business (owner comp not included for small owner-operators). |
Rent & facilities | $3 | $34K | Rent or mortgage on business location plus utilities tied to the space. |
Marketing & advertising | $8 | $101K | Google/Meta ads, SEO, print, referral fees, event sponsorships. |
Other operating costs | $36 | $437K | Insurance, legal, financing costs, agent commissions to sub-agents. |
Net profit | $20 | $244K | What remains for the owner or shareholders after all business expenses. |
Directionally accurate for a typical business in the industry. Individual businesses vary widely — a franchise may run a very different cost mix from an independent, and older established businesses often have lower labor share than newer ones.
Average Revenue by Business Size
Industry Dynamics (Census BDS 2023)
New Business Rate
11.09%
openings/year
Closure Rate
9.5%
closings/year
Net Job Growth
+2.45%
annual
Businesses Closed
9,235
in 2023
Firm Count Trend
Should You Start a Lessors of Residential Buildings and Dwellings Business?
Startup Cost
$50K – $250K
Break-Even
7 months
5-Year Survival Rate
50.0%
Related Industries
Frequently Asked Questions
- What does a lessors of residential buildings and dwellings business do?
- Businesses that own and rent out residential real estate — apartment buildings, single-family rentals, multifamily portfolios. Include institutional owners, REITs, and mom-and-pop landlords. Tenants renting apartments or homes.
- How much do lessors of residential buildings and dwellings charge?
- Apartment building owners earn rental income minus operating costs. Cap rate (NOI ÷ purchase price) is the operative metric. See the pricing table above for typical rates by service type.
- How much does the average lessors of residential buildings and dwellings make per year?
- The average lessors of residential buildings and dwellings business generates $1.2M in annual revenue, based on U.S. Census Bureau data (SUSB 2021). After expenses, the estimated owner profit is $244K per year at a 20.0% profit margin.
- How many lessors of residential buildings and dwellings businesses are there in the US?
- There are 54,064 lessors of residential buildings and dwellings businesses operating in the United States, employing a total of 337,014 workers.
- How much does it cost to start a lessors of residential buildings and dwellings business?
- Startup costs for a lessors of residential buildings and dwellings business typically range from $50K to $250K, with a 5-year survival rate of 50.0%.
- What is the average salary in the lessors of residential buildings and dwellings industry?
- The average employee in the lessors of residential buildings and dwellings industry earns $61K per year, according to Bureau of Labor Statistics data (QCEW 2023).
Industry Growth & Survival
The lessors of residential buildings and dwellings industry is actively growing — adding jobs at a net rate of 2.5% per year. New establishments are opening faster than existing ones close (11.1% entry vs 9.5% exit), indicating healthy demand.
Approximately 61% of lessors of residential buildings and dwellings businesses survive their first 5 years. This is above the national average (~50%), making it a relatively safe industry to enter. In 2023, 9,235 firms in this industry closed permanently.
Employment & Wages
The average employee in the lessors of residential buildings and dwellings industry earns $61,308/year. This is near the national average of ~$65K. With 66,024 establishments employing 367,512 people, the typical business has about 6 employees.
Industry Trend (2000–2023)
The lessors of residential buildings and dwellings industry has declined 1% since 2000 (from 87,451 to 86,663 firms).
See full historical statistics →Compare Lessors of Residential Buildings and Dwellings revenue with other industries: