Forget about the fixer-uppers, the latest shift is in the build-to-rent market.
Nearly a decade ago, during the foreclosure crisis, investors were scuttling to buy homes in various states of disrepair, fixing them up, and turning them into rental revenue. But things change and today the trending strategy is to buy new homes for rental investments, known as the build-to-rent market.
Homebuilders are dipping into the ‘build-to-rent’ market in growing numbers. The idea of constructing dozens of homes in one location makes property management easer and less expensive. But because of the increasing growth, more attention to professional property management and property managers is on the rise.
Consider the very large millennial generation which is now aging into marriage and parenthood. Many of them don’t even want to buy into the homeownership scenario and many simply cannot afford it in this current market.
Because renting affords more flexibility and mobility, many millennials are opting to rent. They can get nice two- and three-bedroom homes with all the amenities and still have the option to relocate in case a job change occurs. Baby boomers, too, have shown a transition to wanting smaller homes and rentals since they have owned homes most of their lives and simply want an easier option.
From an investor’s perspective, buying new has a plenty of benefits, especially when the homes are in the same community. Rental investors have fewer operating expenses within the ‘build-to-rent’ category and the rental rates for single family homes is growing about 4.5 percent annually compared to 3 percent for multifamily units. Not to mention single family rentals have much less turnover.
Cities like Dallas and Fort Worth, Texas, where there are several colleges and universities offer investment advantages for rental property owners. College students are a large segment for rental property and even when school is out in summer, for instance, there are still rental opportunities available.
Of course renting does not carry the same prestige as homeownership. But, today there is a palpable shift in how people view owning their own home. The desire for what was once the pride and privilege of homeownership has given way to a sliding lack of interest.
Investors who are looking toward what’s ahead are realizing how these changes affect their business and taking advantage of the lifestyle differences people obviously want. And when it comes to finding the authentic professional property management team they want for their investments, they choose Cousin James Management.
A respected name among management companies in Texas, Cousin James has been in the business for more than 25 years. Maybe that’s why they’ve earned such a trusted reputation for both residential and commercial property management. Investors know what a big slice of the pie property management is. Without it, they become landlords, saddled with the heavy lifting and the phone calls at 2:00 a.m. from angry tenants with a busted water heater or such.
Cousin James Management maintains an active database of maintenance technicians, landscape experts, construction pros, and more. We have the resources to manage those 2:00 a.m. calls from frustrated tenants.
As the ‘build-to-rent’ industry continues to grow, the demand for quality professional property managers will also grow. It’s good to know that Cousin James Management is there for savvy rental property owners who want the peace of mind to get the job done right for their investment rental properties.