STRATEGY
TECH
Smart Tech for Build-to-Rent Investors
CAPITALIZING ON WHAT BUYERS ARE LOOKING FOR
by Sean Miller
he real estate boom hasn’t been kind to everyone, and
a market correction in the next few years. As a result, they’re opting to rent single-family homes instead of buying. To capitalize on the demand, real estate investors are turning to build-to-rent home models. WHY SHOULDYOU INVEST IN BUILD-TO-RENTHOMES? In the U.S., build-to-rent homes are one of the fastest-growing areas of the housing market. As people rent for longer thanks to sky-high home prices, build-to-rent single-fami- ly homes can cater to the needs of young families, remote workers, Baby Boomers who sold their prop- erties, and more. Another big advan- tage of building to rent is that inves- tors can capitalize on exactly what
renters are looking for, such as more living space, outdoor entertainment areas, and smart property technology that makes life easier. Many single-family property managers already understand the value of smart property tech, from eliminating the need to rekey locks or offering keyless entry to tracking predictive HVAC and water leak ana - lytics that can alert people to leaks early (thus preventing expensive water damage). Despite these ben- efits, investors often have two main reservations when deciding whether to implement smart property tech: cost and property variance. Smart property tech can come with an upfront cost of $500 or more, which owners must work into fixed annual budgets. In addition, prop-
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many people who were saving to buy homes have found themselves unable to afford anything — even in smaller, lesser-known markets. For exam- ple, Boise, Idaho, Wichita, Kansas, and Dayton, Ohio, have seen median housing prices increase year over year by 27.7 percent, 17.7 percent, and 15.6 percent, respectively. And these cities are far from outliers. The Wall Street Journal recent- ly reported that in May 2021, home prices — fueled by a shortage of supply and historically low interest rates — increased by the biggest margin in more than two decades. In the face of this challenging mar- ket, many people are being priced out of buying or deciding to wait for
68 | think realty magazine :: october 2021
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