02 Apr The Market Changes
There was a time when rental living was for college kids, people just out of the military or newly minted couples. But as businesses become more global and careers become more mobile, the need for easy relocation is more important than securing a loan and paying for roof repairs. Yet the perks of home ownership (like a neighborhood with a playground, cool pool and lots of parking for family parties) continues to be in demand. Why sacrifice life in a great subdivision simply because you want to live without the responsibility of a mortgage?
As the rental industry begins to adapt to the evolving tenant, we’re seeing a demand for more middle-class homes as rental options. The high–rise condo and simple two-bedroom starter apartment still have a solid hold in the marketplace. But families and singles looking for the community experience are looking for their next home through search engines and company portals that are frequently funded by investor owners.
Home ownership has been one of the defining characteristics of American financial success. So, the challenge faced by investor owners has been to reshape a segment of the industry without alienating those who maintain home ownership as a right of passage.
This journey hasn’t been without some serious missteps. Some engineers failed to properly calculate the costs of restoring the homes. And in an effort to cut costs, less knowledgeable leaders worked with inexperienced realtors who were unable to get the right properties or the right deal for an investor portfolio.
Hard work and a willingness to push forward have resulted in some grand successes including consistent rental renewals, improved technology that reduces operating costs and stabilized rehab templates helping to keep infrastructure costs lower and visual appreciation higher.
Investor owners are creating an opportunity for tenants to have the perks of living in a developed community while still meeting their personal financial obligations. New tenants can have the comforts of a well-maintained home while being able to relocate as needed without the weight of household debt. As time goes on, it may not be unusual to hear grandparents questioned about their desire to buy their own homes during the 1960’s and 1970’s. Because in twenty years, the American norm may be urban leasing.
One thing is certain, investor owners are influential in the continuing evolution of rental properties. Whether it’s the tech, the options or the community, investor owners are simply giving new tenants the thing they need to be happy and comfortable wherever they live.