Coldwell Banker Realty
Arielle Biscayart, Coldwell Banker RealtyPhone: (305) 303-1218
Email: [email protected]

The Single-Family Home Rental Market Offers Attractive Investment Opportunities

by Arielle Biscayart 08/03/2021

We are all familiar with real estate investors purchasing condominiums, multifamily buildings, retail and office spaces to receive monthly cash flow.

However, a trend is growing in another section of the real estate investment market : purchasing single-family homes or houses and renting them out to tenants. This market has actually been outperforming the office and retail markets with higher and more stable returns.

The President and CEO of Invitation Homes; the largest single-family home landlord in the United States ( which rents more than 80,000 houses ) states that this market offers a 75 to 80 % tenant renewal rate. Tenants tends to stay in the same house for three years on average, which is twice as long as for condominium tenants.

This leads to longer-term tenants, lower vacancy rates and a higher financial stability for landlords.

There are very few institutional investors on this market and it's still dominated by small investors, however, an increasing number of big players such as the private equity firm Blackston Group are growing their single-family home rental portfolios.

According to Loopnet.com, Blackstone Group recently purchased Home Partners of America for $6 billions. The company owns 17,000 houses.

The low housing inventory across the United States including Florida has led to higher values and an increase in sale and rental prices.

Let's see if the recent end of the moratorium on evictions will push some landlords to sell their properties or be more flexible with the asking rents. 

If you have any question regarding real estate investment opportunities, feel free to connect with me :

Arielle Biscayart - Maven Realty

 

Photo by Claudia Altamimi for Unsplash.

 

About the Author
Author

Arielle Biscayart

Arielle Biscayart was born in Rome, Italy, raised in Paris, France, and moved to the Miami area in 2004.
Since becoming a South East Florida resident, Arielle has been a Florida licensed real estate agent, involved in the growing local arts community. She has been offering her real estate consulting and sales services in the Fort Lauderdale, Hollywood, Aventura, Miami Beach, Miami, and Allapattah areas since 2005.
Speaking four languages ( English, Spanish, French, and Italian ) helps her market her service a portfolio of local and international clients.