Institutional investment in rental single family rental (SFR) homes is on the rise and expected to grow dramatically over the next eight years, according to a new bulletin on the sector released today by Yardi® Matrix. However, rising interest rates are forcing investors to reassess the most effective strategies for growing portfolios and may contribute to lower near-term returns. Institutions have committed more than $60 billion to buying single-family homes over the past year, according to various corporate announcements and news articles. Recent research by MetLife Investment Management (MIM) estimated that institutions own some 700,000 single-family rentals in 2022, about 5 percent of the 14 million SFRs nationally. MIM forecasts that by 2030, institutions will increase SFR holdings to 7.6 million homes, more than 40 percent of all SFRs. Institutional acquisitions of SFRs in communities of 50 or more units soared in 2021 to $2.5 billion, according to Yardi Matrix. Institutional portfolio growth is currently focused on build-to-rent (BTR) projects or acquiring portfolios from smaller owners. BTRs are on track to deliver far more units in 2022 than in any previous year. More than 25,000 units are under construction and nearly 4,300 were already delivered in the first half of 2022, meaning the industry will easily surpass 2021’s record-high 7,705 deliveries. “Rising home and mortgage costs in the second quarter of 2022 increased the cost of capital for institutional buyers, so the segment’s growth is likely to slow and returns will moderate. Even so, the industry benefits from strong long-term demand drivers and the explosive growth in institutional capital,” say Matrix analysts. Get more insight into investment activity, development and rent trends for the SFR/BTR sector in the new Yardi Matrix...
Single Family Homes
Managed by Yardi Voyager
Yardi Voyager Single Family Homes simplifies property management without the need to expand payroll. Its property management, accounting and maintenance features are tailored to each clients’ needs. Manage Wisely Get a quick overview of operations each time that you open the Voyager Single Family Homes dashboard. Skim the latest updates on occupancy and availability, resident charges, receipts, property traffic and maintenance. Drill down into details as needed. Leverage the power of the industry’s most widely adopted accounting system. Generate and export custom reports to paint a clear picture of your financial standing. As your company continues to grow, you maintain control over access to that data. Set up users with read-only access to specified features and reports. Regularly issue reports to individual investors with a convenient report scheduler. Paperless cloud storage facilitates access to data from any location on any mobile device. Streamline financial management with Voyager Single Family Homes. The comprehensive systems meets IFRS and GAAP requirements. Expand Effortlessly Voyager Single Family Homes is more than accounting. The system empowers you to automate resident and home management from guest card to move-out. Store property brochures and quote sheets within the system. When multiple parties are interested in your properties, you can create a waitlist by market. As prospects turn into residents, automatically populate the resident records from the data on their guest card. Ensure that your units are in optimal condition with maintenance and work order tracking. Voyager Single Family Homes seamlessly integrates with other Yardi solutions that help your business operate smoothly. Tools for maintenance and inspections, marketing and leasing, procurement, energy management, resident screening and renters insurance unite under the Voyager umbrella. RentCafe Single Family Homes and RentCafe CRM Single Family Homes incorporates marketing, mobile leasing and customer relationship management and...
Bidding Wars
In Surprising Cities
Need to motivate your customers? Use your blog or newsletter to notify prospects that your property stands in one of the hottest, burgeoning markets in the nation. Perhaps they know that—they are already interested in buying in the area–but do they know about the local bidding wars? Bidding wars aren’t limited to the large cities any longer. Secondary markets are now seeing their fair share of dueling offers. To encourage faster response times from your prospects, share some of the interesting content below: Explain a Bidding War For your content to have the greatest impact, you’ll want to ensure that you clients understand the definition of a bidding war. To be concise, bidding wars take place when multiple buyers submit offers over the asking price in a desperate effort to secure the property for themselves. A higher asking price is only part of the battle tactic. Remind buyers that there are other concessions and considerations that can sweeten the deal for sellers. How Did Your City Make the List? Honestly, most buyers won’t care how your market made the list. But just in case they ask, here is the rundown. Realtor.com examined 150 cities where homes are selling above their asking prices. The organization kept tabs on these locations from 2015-2018 to solidify the trend before adding the city to the list. That means that these cities have been getting hotter and hotter for years now. Your clients better get ready to rumble! 5 Top Ranked Cities for Bidding Wars 1. Akron, OH Share of homes selling above list price: 20.6% Increase in the share of homes selling over list price: 91.7% 2. Worcester, MA Share of homes selling above list price: 41.5% Increase in the share of homes selling over list price: 88.1%...
Tricon American Home
Selects Yardi platform
As part of a plan to scale its operations, Tricon American Homes wanted to replace several business systems with a single, integrated source of data whose automation and efficiency would let it grow its portfolio without adding overhead costs. The single-family rental home owner and management company executed this plan by implementing a single solution stack anchored by the Yardi Voyager® Residential property management and accounting platform and supplemented by the Yardi Marketing Suite™ and the Yardi Multifamily Suite™. Tricon’s competitive strategy takes hold the moment a prospective resident discovers a Tricon property through RentCafe™, Yardi’s full online leasing and resident services solution. He or she can see the property’s marketing website, view floor plans and complete the application online, including screening. RentCafe and the Yardi Marketing Suite reduce the application process to mere minutes, rather than the hours or days it takes when disconnected systems are involved, and prospect information is automatically entered into Yardi Voyager. Tricon also improved resident service by allowing online activities such as maintenance requests and payments through RentCafe’s resident portal. Additional Yardi Multifamily Suite products streamline other key business operations for Tricon. For example, Yardi Fixed Assets™ enables physical and financial monitoring of the company’s major property assets through their complete lifecycle, from purchase order to final disposition. Yardi Inspection™ lets the company schedule and perform unit and property inspections. Implementing Yardi Voyager and the full business suite of products has allowed Tricon to keep its business “clean,” meaning there’s a clear audit trail and the marketing and application process is user-friendly. Inefficient interfaces among systems have also been eliminated, electronic payments have been enabled, the procurement process has been centralized and maintenance schedules across the company have been streamlined. “We are pleased that Tricon has selected Yardi...