Currently, there are 27 million properties across the United States in an HOA, with SFR Investors owning a very small percentage of rental properties. As the country moves toward a more transient population, the opportunities for SFR Investors will continue to grow.
While more art than science, HOA and City Code compliance costs are estimated to average 6% to 10% of the total annual operating costs for SFR Investors. These costs are sizable and escalating.
While the opportunity is enormous, but the challenge for the SFR industry is to capitalize on the opportunity while also reducing operating costs and mitigating risks.