by threshold | Jun 15, 2021 | Digital Marketing, Marketing, Tech/Web, Thought Leadership
Property Management Software like Yardi, RealPage, and Entrata are an essential part of many property managers’ day-to-day operations. For some management teams, they are an indispensable part of customer relationship management, lead flow, digital marketing, and more. With so much functionality centralized on one platform, property management teams may find it tempting to rely solely on their chosen PMS for all their digital marketing needs. But does that mean missing out on your maximum ROI?
Today, we’re covering some of the pros and cons of Property Management SaaS products like Yardi, RealPage, and others in order to assess the gaps in their service offerings. Along the way, we’ll compare the strengths of these SaaS products to the strengths of a relationship-oriented real estate marketing partner offering a People-as-a-Service approach to digital marketing needs. In the end, we’ll recommend a hybrid approach to apartment marketing strategies and explore how PMS and marketing agencies should work together to maximize ROI for the Property Management teams they serve.
Pros and Cons of PMS Websites
Let’s start by reviewing the website offerings of some of the leading PMS. While Property Management Software like Entrata and RentCafe offer streamlined website templates, there are pros and cons to using them. The largest advantage to this strategy is that the website you create integrates with the other products in their suites (including their CRM products) with minimal effort. This helps facilitate lead flow so that your leasing staff can easily follow up on leads and turn them into leases.
However, there are limitations to RentCafe, Entrata, and other PMS’s website templates. For one thing, while these websites tend to focus on lead flow, this doesn’t necessarily translate into exceptional UX. In other words, while it’s easy for leasing staff to act on the leads that come through a PMS website, it’s not necessarily maximizing the number of users who actually convert after arriving to your site. When a user finds their way to your site, their experience there can quickly make or break their likelihood of filling out a contact form, scheduling a tour, or starting an application. They need to be able to get a strong sense of your brand, easily navigate to the information that’s relevant to them, and be guided to the action you want them to take without feeling pressed. A website that puts the User Experience first, rather than lead flow, can generate more leads and conversions. Plus, a savvy web developer can help ensure your website integrates into your PMS suite even if you don’t use a template provided by the PMS itself.
Not only that, but these PMS websites don’t provide easy ways to perform a website refresh as trends change, nor do they facilitate SEO updates to help ensure you’re incorporating the most effective keywords to maximize your qualified traffic. Working with an agency partner on your property website can give you the flexibility to update these elements as needed so you don’t get stuck with an out of date site.
Finally, using a template provided by popular PMS like Entrata and RentCafe means your website ends up looking like many other websites on the market. With limited options to choose from, it can be hard to find a template that reinforces your unique branding and stands out from your competitors. This means your site and your brand can become forgettable and fewer prospects keep you in mind as they move from the awareness phase to the consideration phase of their renter’s journey.
Pros and Cons of PMS Digital Marketing
Major Property Management Software like Yardi and Entrata offer an array of PPC advertising and SEM services, often supported by Google and Facebook Partnerships. While these PMS cover some of the most popular digital real estate marketing strategies like Google Search Ads, Google display ads, Remarketing ads, and Facebook ads, there are certain services they don’t cover. This typically includes emergent strategies like OTT & CTV ads and Addressable Marketing campaigns.
And that’s just in the digital marketing bucket; there are also many traditional marketing tactics that could supplement these digital strategies, which PMS do not assist with. For brochure design, exterior signage, flyers, leasing office design, and more, you’ll get more help from a full-service real estate marketing agency partner.
Additionally, while their CRM platforms make it easier to automate lead nurturing efforts and renewal campaigns over email, they don’t always assist with the creative process of copywriting and designing beautiful emails that earn opens, clicks, and conversions. A real estate marketing agency is typically better equipped provide email marketing options that coordinate with your unique branding and utilize best practices that result in increased brand awareness, loyalty, and conversion actions.
Pros and Cons of PMS Customer Service
Your mileage may vary when it comes to the PMS customer experience. While some PMS platforms assign account managers (sometimes at a premium) and have experts available to work with you to optimize and implement your real estate marketing strategy, there are others that follow the more bare-bones SaaS model that emphasizes the ability to do it yourself. For example, G5 promotes its “Knowledge Base” as a Customer Care strategy, but isn’t focused on providing individualized customer service that is responsive to your input and unique needs. In general, Software as a Service products focus on making it easy for the average user to get what they need without hands-on attention, which is what allows them to cut down costs and serve more clients at once.
The downside of the SaaS model is that the end user has less flexibility and less assistance when they need it. Software aren’t flexible to feedback from a leasing agent and they don’t automatically adjust to changes in your audience or in your marketing goals. While some Property Management Software companies offer calls to review strategy and discuss optimizations with expert consultants, you’ll typically get more communication and hands-on campaign management from a real estate marketing agency where you have a dedicated account manager and regular reporting calls.
The Best Real Estate Marketing Solution
So, taking all these pros and cons into account, should you use a PMS or rely on a real estate marketing agency instead?
Ultimately, the answer is that you don’t necessarily have to choose one or the other. For many, a hybrid approach is the best option. Leading Property Management Software offer excellent CRM, budgeting tools, resident portals, and other solutions. But adding a real estate marketing agency to the mix helps you leverage better website design, more diverse advertising mixes, and more consistent branding while also enjoying the benefits of hands-on customer service, which ultimately enhances results.
For those with the budget to do so, even a modest one, we recommend combining PMS with a marketing agency relationship.
by threshold | Jun 1, 2021 | Creative, Design, Marketing, Tech/Web, Thought Leadership
Written by Chelsea Friel, Graphic Designer
Designing with accessibility at the forefront has never been more important, but it can be daunting to determine whether or not your website is in compliance with regulations. In 2020 alone, over 3500 digital accessibility lawsuits were filed, including federal and state ADA lawsuits, and an estimated 56 million people in the U.S. are currently living with a disability. As we look to expand our services in the real estate and housing market, it’s paramount that we keep accessibility top of mind in our work. The goal is to improve our practices to make our designs as accessible as possible for the widest audience, and to make usability as high a priority as visual appeal.
What Does Web Accessibility Look Like?
To be frank, the word “compliance” doesn’t exactly bring to mind a font of creative flights of fancy. It usually summons images of black Arial text neatly organized on a white background, which is fine for doing your taxes but less than ideal for promoting your sparkling new multifamily property. In truth, adhering to Web Content Accessibility Guidelines (WCAG, from here on out) is pretty easy to incorporate alongside our existing design practices. WCAG ratings are ranked from A to AAA, in a sort of “good, better, best” system. If A is the rank for a solidly usable website, then AAA is the gold standard of accessibility.
Similarly to how we build successful brands that thrive in the wild, the process of establishing an accessible web presence requires some collaboration between designers, copywriters, and developers. By keeping a few helpful guidelines in mind, each team’s work contributes to a fully accessible real estate website that anyone can (and will want to) use, regardless of their level of ability.
A Helpful Guide for Accessible Design
Contrast
When establishing a color palette, high contrast is critical for usability. When considering moderate to severe visual impairment, the ideal contrast ratio is between 1 to 3 and 1 to 4.5, depending on the size and the boldness of the text. The larger and thicker the characters, the lower the ratio can be while maintaining legibility to the eye, or to a screen reader. Any important copy should be designed with the highest contrast possible to ensure greater visibility for users.
Chrome extensions such as Spectrum can help you determine how user-friendly your website is by showing you alternate versions of your website based on various visual abilities.
Alternate Indicators
On the topic of visual acuity, consider using alternate methods of establishing a hierarchy of content apart from color changes. If a piece of text changes color when a user hovers, the addition of a line under the text serves as an additional cue that the copy can be clicked or is interactive in some way. Other visual indicators can be icons, boxes, or typeface changes (such as semibold to bold or black) to indicate to the user that they’re on the right track.
Charts and graphs can also present a challenge. Apart from using distinct colors to designate a data set, one solution is to incorporate texture or patterns into the design to further differentiate the information presented to the user. Trello has a plugin that can convert graphs using color blindness–friendly patterns to help aid legibility for all users, while maintaining the overall look and feel of the design.
Alt Text & ARIA Labels
Used to describe an image when it is unavailable to the user, alt text and ARIA labels should provide as much detail as possible. Describe what’s happening in the image instead of opting for the file name or a bland categorization of the subject like “man” or “house.” For folks who use screen readers to navigate websites, this attention to image descriptions provides a much clearer idea of what is in the design and what the website is trying to convey. This can be a key factor in whether or not they pursue your property further, depending on how well you describe the photo of the premises or the neighborhood using these tags and labels.
Content and Type Hierarchy
When writing copy for a website, simpler is better. Important messages should be short and to the point, while conveying all of the essential information a user needs to know right off the bat. WCAG recommends limiting a line of text to 80 characters or fewer, and to avoid writing overly complicated or lengthy sentences. Designers and copywriters should work in tandem to draft copy that looks beautiful in the design, excites the user with its content, and can be read by as many people as possible, regardless of the tools they use to view the website.
UI and Navigation
Users of varying abilities frequently use keyboard navigation to explore websites, and care should be taken to establish a logical flow of information. Good design is obvious, and a user shouldn’t have to spend time deciphering how to move through a website to find what they need. Clean focus states, clear and easy-to-remedy error states, and concise links makes a site more accessible to all, and provides a better user experience across the board.
Designing for Everyone
Accessibility should always be as high a priority as creating a beautiful design. A visually stunning website that can only be accessed by half of our users is ultimately a design failure, and our goal should be to be as inclusive as possible in our work. As we continue to go above and beyond for our clients and our audience, normalizing accessibility practices deepens our understanding of who we serve, and provides a more inclusive space where all are welcome.
by threshold | May 20, 2021 | Digital Marketing, General, Marketing, Tech/Web, Thought Leadership
Written by David Belachew, Digital Marketing Strategist
Ever since Apple’s announcement of their all new App Tracking Transparency feature (ATT) last summer, anxiety has been rampant for digital real estate marketers in the multi-family housing industry. ATT will require app developers and partners such as Facebook and Google, to ask users permission “to track their actions across other third party apps, websites, or offline properties for targeted advertising or advertising measurement purposes.” Within the first week of the launch of ATT on April 28th, over 96% of iOS 14 users have chosen to opt out of app tracking.
Initially, digital real estate marketers were all fearful of the impact of losing valuable tracking data from these users. Without this information, digital real estate marketers will have a more difficult time assessing the performance of their digital campaigns and will likely have less data to rely on when making budget allocation decisions.
However, in response to the feedback shared by advertisers from some of Apple’s largest partners, Apple rolled out a tool called SKAdNetwork, which will allow advertisers to “measure the success of their ad campaigns while maintaining the privacy of their users.”
In conjunction with SKAdnetwork, both Facebook and Google have rolled out new features and policy updates that will also balance both the privacy concerns of users and ad attribution concerns of their digital advertising partners.
We recommend that digital real estate marketers who actively use Facebook and Google advertising platforms follow these platforms’ new guidelines to offset the negative impact of the ATT on their campaigns. With that in mind, this blog will provide you with some valuable tips on how you can improve the performance of your digital campaigns and confidently report on online behavior of iOS 14 users on your real estate website.
Use Diverse Sources Of Remarketing
As more users choose to opt out of tracking on their iOS 14 devices, both Google and Facebook expect to have a smaller pool of users from their website remarketing audiences. This means that getting the desired results from campaigns whose objective is to remarket users based on their online activity on your property’s website will become more difficult.
With that being said, we recommend that digital real estate marketers diversify their retargeting audience sources to improve the reach and performance of their remarketing campaigns. These sources may include, but are not limited to users that:
- Viewed a specific percentage of a real estate marketing video asset, including from YouTube and Facebook videos, or videos embedded on your property’s website
- Engaged or commented on an organic post from your property’s Facebook or Instagram page
- Clicked on the call to action button from your property’s Facebook or Instagram ad
By expanding your retargeting sources beyond just your website visitors, you will lessen the likelihood of losing the opportunity to promote your property to iOS14 users.
CRM Tool Integration
Even as Google and Facebook implement new attribution modeling techniques that will estimate the volume of conversion actions generated from iOS14 users, both companies have been vague about how large of a negative impact ATT will have on reported conversion attribution from campaigns on their advertising platforms.
With that being said, there are several tools from popular CRM platforms in the housing industry that have the ability to fire native events directly to leading tag management and analytics platforms such as Google Tag Manager and Google Analytics.
These leading CRMs and tools include, but are not limited to:
- Setmore – A popular scheduling tool used by property managers to schedule in-person and virtual tours with prospects
- RentCafe – A popular CRM used by property managers to help develop their property’s website, provide an applicant and resident portal for the property, and help improve resident retention
- Knock Doorway Bot – Similar to the G5 bot, this bot, developed by Knock, helps pre-qualify users by providing them pricing and floor plan availability and also encourages users to schedule virtual or in-person tours and complete a contact form submission.
Integrate Your Google Analytics and Google Ads Accounts
As mentioned above, integrating your CRM with a compatible analytics platform can go a long way to understanding user behavior on your property’s website. However, if you use Google Analytics (GA) to track and report on traffic activity on your property’s website, there are several actions you can take now to better understand the performance of your campaign across most platforms, which will allow you to make smarter optimization decisions.
From contact form submissions to completed applications, you can create Goals from your Google Analytics account to measure valuable actions taken by users on your property website. Once these goals are created, you can measure the volume of goal completions across multiple channels, such as organic, paid search, paid social, display, etc.
You can also transfer your GA goals as conversion actions into your Google Ads account. Once you complete your conversion configuration on Google Ads, these conversion actions can be reported and optimized from your paid search and display campaigns and may lead to a higher volume of qualified leads generated on your website.
Another added benefit of linking your Google Analytics account to your Google Ads account is that you can better fine-tune your website remarketing audiences. You can configure your remarketing audience by focusing on users who visited a minimum threshold of pages on your website, spent a specific amount of time on-site, and so much more. These remarketing audiences will ensure that your display campaigns will only target users who are more likely to convert on your website while filtering out users who have shown little interest in your property.
by threshold | May 11, 2021 | Digital Marketing, General, Marketing, Tech/Web, Thought Leadership
In spite of evidence to the contrary, some marketers still operate under the incorrect assumption that today’s seniors don’t spend time online or rely on technology to make purchase decisions. In reality, seniors are more tech-savvy than ever, with 88% of adults aged 50-64 and 73% of adults over 65 identifying themselves as internet users. In fact, today’s target audience for senior living communities will rely on online searches, online reviews, digital ads, and your property website to help make their final housing decision much the same way younger generations do. Still, that doesn’t mean you should use all the same digital marketing strategies for senior housing as you would for student or multifamily communities. There are some crucial nuances to be aware of.
When it comes to Active Adult housing, digital marketing strategies should focus on the platforms where these active adult prospects spend most of their time. For Independent Living, Assisted Living, and Memory Care, your strategy should also appeal to the adult children of senior prospects who are often assisting or directing the housing search. Your digital marketing should also take into account the prolonged digital renter’s journey that can be common for senior prospects, who often have more flexibility regarding when they choose to move out of their current home. Finally, a digital marketing strategy for senior housing should be tailored to address common priorities for senior prospects, including sense of safety, reliability, and community.
There are many strategies you can employ to meet these unique demands of the senior housing market, from unique ad types to website design. Here are some of the top digital marketing strategies for senior housing.
Addressable Marketing Campaigns
Addressable Marketing is emerging as the direct mailer for the digital age, making it a particularly excellent choice when marking housing to seniors. It allows ads and other media to be served to individual households across a number of personal devices—TVs, smartphones, personal computers, etc. These ads can target prospects based on household location, age, income level, home equity information, number of household members, and a variety of interests, resulting in highly qualified online and offline traffic from prospects who are more likely to convert.
Because it targets your audience household-by-household, this tactic shares many of the benefits of the direct mailer while also saving on design and printing costs and allowing you the flexibility to target your audience with data aggregation tools rather than requiring you to have a list of addresses ready at hand. These data aggregation tools and fine-tuned targeting factors can help you hone in on senior prospects who may be ready to move, like empty nesters who may be looking to downsize, for example.
When creating an Addressable Marketing Campaign, you start by defining the audience you’re hoping to reach across factors like household location, interests, and other demographic information such as age, income level, etc. Then, though data aggregation tools, micro-geofences are drawn around each physical address that meets those data requirements. Next, a conversion zone is drawn around a specific location where you want to measure foot traffic (e.g. your leasing office).
When a prospect enters your micro-geofenced locations (e.g. physical home address), they will be targeted with your ads on their mobile and desktop devices for a set amount of time (30 days is typical). When the customer enters the conversion zone (e.g. leasing office) with their mobile device after being served your ad, the conversion zone recognizes the prospect and attributes their visit as an offline conversion. OR, if a prospect converts online by filling out a contact form, that action is measured as an online conversion.
Facebook Campaigns
By now, it’s well-understood that most seniors and active adults have adopted social media. In particular, older generations tend to use Facebook. Many seniors use Twitter and Instagram as well—some even use TikTok—but Facebook reigns supreme for its focus on fostering connections with family, friends, and acquaintances both current and past. To get specific, 72% of American adults between the ages of 50 and 64 were on Facebook in 2016, as were 62% over 65 and those figures are even higher in 2021. Naturally, this also means that seniors between the ages of 50 and 70 respond well to Facebook advertising. After all, 15% of users in this age range spend 11+ hours per week on the site.
Facebook offers a wide variety of ad types, be we particularly recommend Traffic and Lead Generation Campaigns for senior and active adult prospects. Traffic Campaigns are especially useful as an awareness tactic, targeting users within a geographic area and proactively serving ads to users with relevant interests and demographics. This ensures seniors nearby are aware of your community when they are ready to start their housing search. And because seniors tend to take longer to finalize their housing choice than younger generations, building that awareness over time is particularly rewarding when it comes to these prospects.
Lead Generation campaigns allow users to submit their name, email, and phone number directly on the Facebook platform, sending this information directly to property staff for quick and easy follow-up. This tactic is excellent for senior housing marketing because it gets prospects on the fast track to a real conversation with your staff, which many seniors still find preferable to the experience of browsing a website and hunting for information online.
Facebook can also do retargeting campaigns, which target users that have already interacted with your ads or Facebook posts before, making it useful as a way to keep top-of-mind with prospects. But bear in mind that older generations tend to be more wary of data tracking than younger generations who tend to see these tactics as the norm. That means aggressive retargeting campaigns may strike them as eerie and invasive rather than convenient and friendly. However, retargeting them sparingly and with the right message can result in increased conversion rates.
Email Marketing
When it comes to lead nurturing, Email Marketing is hard to beat. That’s especially true for seniors and active adults who tend to value personalized interactions directly from leasing staff when making their decision. So when developing your email marketing strategy, be sure to incorporate personalization as often as possible.
For more tips to enhance your Email Marketing strategy, Check out our article below.
Email Marketing for Apartments: Best Practices That Actually Earn Leases
Reputation Management
Before signing a lease with you, your prospects are going to research your community’s online reputation on sites like Google, Yelp, Facebook, Apartments.com, and ApartmentRatings.com. And that’s not just true for younger generations. Seniors (and their adult children who sometimes assist in or steer the housing search) also pay attention to reputation and use online reviews as well as word of mouth to determine whether they can trust a housing community.
When your prospects conduct this research, it’s important that what they find inspires their confidence. A poor online reputation means fewer prospects make it to your website, choose to schedule a tour, or take the plunge and sign a lease with you. In fact, a study by Harvard Business School showed that a one-star increase in your ratings can result in up to a 9% increase in your overall revenue.
There are many things you can do to improve your online reputation, including encouraging reviews from loyal residents and responding to the reviews you get, both positive and negative. For more tips on how to improve your online reputation, we have another article you should check out.
How To Make Online Property Reviews Work for You
Website UX Upgrades
A poor website experience is frustrating for everyone. Those who are especially tech-savvy may find their way around a poorly designed and developed website, but often prospects will just give up and look elsewhere. Poor website UX results in high bounce rates, low SEO rankings, less website traffic, and ultimately fewer digital conversions.
When it comes to improving UX for seniors, consider all the factors you normally would (page load times, easy scannability, a clear hierarchy of information, prominent calls to action, etc.). Also consider avoiding smaller font or icon sizes or images with poor contrast. This makes your website more legible to everyone, not just to seniors.
How To Improve UX on Your Property Website (and increase conversions)
Most importantly, ensure you have clear CTAs in prominent areas of the page to direct users to the actions you want them to take, such as viewing available floor plans, exploring amenities, and most importantly, contacting your leasing staff.
by threshold | Apr 28, 2021 | Creative, Design, Digital Marketing, Marketing, Tech/Web, Thought Leadership
Written by Weylan Lee, Senior Graphic Designer at Threshold
User experience and user interface (UX/UI) design are both in high demand, especially for digital spaces like apartment websites and mobile apps. With this high demand comes many tools that cater towards UX/UI design. At Threshold, we use Adobe XD, which is a design tool that allows us to create and prototype interactive experiences like websites, digital products, and mobile apps. With this tool, our teams are able to design, animate, prototype, and collaborate more efficiently, experiencing our designs just like an end user (i.e. our clients’ residents and prospects) would. This has significant advantages both for us internally as well as for our clients and their end users.
How Adobe XD Improves the Real Estate Marketing Client Experience
First and foremost, Adobe XD allows us to present our compelling and amazing website designs more comprehensively and engagingly for our clients. With XD, instead of designing static pages and leaving it to the imagination how they will animate or link to one another, we are able to incorporate engaging user experiences and interactive functionality that enhance our client’s brand and optimize for conversions from the very beginning. Our clients are able to view and experience their website designs just like a viewer would on a live website. They can scroll down a web page, click on links and buttons, interact with CTAs, as well as interact with things like galleries, floor plans, location maps, and much more. Plus, with the ability to leave comments and replies right on website designs, using Adobe XD allows our clients to make more informed decisions and provide accurate feedback, streamlining our collaboration with our clients.
How Adobe XD Improves Collaboration for Creative Real Estate Marketers
For our internal teams, using Adobe XD has allowed us to design more immersive and impactful website experiences and made our internal collaboration more efficient – which also benefits our clients! Our designers are able to experience and interact with their website designs in real-time as they are designing. This allows us to create more impactful, engaging user experiences and ensure that a website not only looks amazing and functions properly, but also provides a great experience. Adobe XD also allows for the creation of brand-specific design libraries, which our designers use to ensure that a client’s branding (fonts, colors, buttons, and more) is applied consistently throughout each page of an entire website. Even better, the collaboration tools within Adobe XD allows our designers and developers to share website assets and details more efficiently, reducing project timelines and ensuring a smoother transition between design and development.
Why You Should Work With a Real Estate Marketing Agency That Uses Adobe XD
To sum it up, by using Adobe XD, our teams are able to create impactful user experiences that our clients (and their current and future residents) will enjoy. The improved and efficient collaboration between our internal teams and our clients and project teams means that we are able to reduce project timelines and ensure we are creating the highest quality websites for our clients. Our project teams are able to spend more time on creating amazing and impactful website designs with great experiences. At the end of the day, that all leads to increased conversions and customer loyalty among our clients’ prospects and current residents.
by threshold | Apr 22, 2021 | General, Marketing
Build-to-rent single-family homes have been on the rise in recent years, but they haven’t yet comprised a major portion of new housing developments. However, the changing market landscape brought on by COVID-19 and the associated economic recession could put them on track to become the next big real estate trend.
Due to COVID-19, more and more people have been looking to make the move to the suburbs, looking for more space, less crowding, better air quality, and other suburban perks. But for many, buying a home is undesirable or altogether out of the question due to the cost of a mortgage and down payment and/or the limited availability of housing in many markets. When the pandemic hit, it drove the median price for home sales up, resulting in high demand with dwindling affordable options. This all adds up to a growing segment of the population looking to live in a single-family home but not looking to (or able to) own a home.
The response? Build-to-rent single-family homes.
While people search for suburban housing that fits their needs, developers are also discovering that luxury build-to-sell single-family homes weren’t driving the same profit they once did. In 2019, the sales of luxury or move-up homes dwindled, so home builders like Meritage, Lennar, and KB Home shifted towards an entry-level product. And realized they could make money doing it.
The History of the Single-Family Home Rental Trend
From 2008 to 2018, the number of single-family rentals (including existing homes and build-to-rent units) grew 18%. By 2018, single-family rentals accounted for 15.5 million units—about one in every three units nation-wide.
What started this? The recession in 2008 caused investors to buy up foreclosed homes in bulk and for cheap and begin to rent them out. But later, home prices recovered and it became more difficult to find foreclosed homes in bulk. Further complicating the home rental model was the fact that upkeep and maintenance on older homes was more challenging and costly than that of newer homes. Hence, incentive grew for purpose-built, single-family rental homes.
Where Are Single-Family Rental Homes Being Built?
Although this trend is cropping up across many United States markets, it’s more common in some areas than in others. In general, the focus is on areas where builders can acquire cheap land and offer rental prices ranging from $1,600 to $2,000. This includes areas of Texas, the Carolinas, Florida, and Arizona.
For example, Capstone Communities announced in January 2021 that they were building a community of cottage-style build-to-rent single-family homes in Summerville South Carolina, estimating a completion in early 2022.
How Are Single-Family Rental Homes Different From Traditional Homes?
A few distinct design features make build-to-rent single-family homes different from their build-to-sell counterparts. Builders are focusing on materials and layouts that will be durable, desirable, and efficient with long-term maintenance in mind. That typically means no carpet, laminate-wrapped cabinets, and composite decks, for example. In many cases, builders opt for more expensive installations because they offer added longevity that saves money in the long-run.
Who’s Renting Single-Family Homes?
Who’s driving the demand for single-family home rentals in 2020 and into 2021? There are actually many segments of the population who are interested in this product, each for their own reasons. We’ve already mentioned growing demand among millennials, but active adults and seniors also comprise a significant segment of the target audience for these new housing developments.
Perks of build-to-rent single-family homes include avoiding the obligation of a mortgage or costly down payment while also getting many of the usual benefits of home-ownership: no shared walls or corridors with neighbors, more private outdoor space to enjoy, private parking (typically in an attached garage), and distance from the hubbub of urban centers while still offering reasonable accessibility to the action.
Who do these perks most appeal to? Here’s a breakdown of some of the groups that are contributing to the demand for these single-family home rentals:
- Millennials moving to the suburbs in search of more space and good schools, including those who have recently had their first child or anticipate having one soon. This group may be particularly motivated by the benefit of avoiding a costly mortgage or down payment.
- Gen Xers who enjoy privacy and space but don’t want the maintenance or obligation of owning a home
- Boomers looking to downsize and enjoy a more maintenance-free lifestyle
- Anyone in need of transitional housing who doesn’t want the apartment lifestyle (e.g. moved for a job or recently divorced)
- Anyone who wants more flexibility with their housing situation and doesn’t want to be tied down to a mortgage
- People with unusual schedules like pilots, nurses, and public service workers. This is a group of people who may want to live in a home but need something that requires less maintenance due to their demanding schedules.
