SFR Trends to Watch Through the End of 2024
At MCS, we are deeply embedded in the single-family rental (SFR) market. We study industry publications, review the latest trends, and attend and speak at conferences—like this year’s IMN SFR (East) and National Rental Home Council (NRHC) events—to better serve our clients. Here’s a snapshot of what we’re eyeing in the SFR space right now.
Proactive SFR partnerships
We’re noticing a shift toward proactive partnerships between SFR operators and service providers and away from a transactional approach to the business. What does this look like? As one example, operators are seeing the value of sharing data on volume and what’s on the horizon so servicers can plan better and be less reactive.
“This really helps all parties involved,” says Jason Myers, Vice President of Business Development at MCS. “We can do our best work and better serve our clients when we work together as partners, understanding what’s coming down the pipeline. A collaborative approach allows us to be more efficient and proactive, leading to shorter timelines and less downtime for the operators.”
Myers currently collaborates with other industry leaders as a member of the SFR Industry Partners Council, an NHRC committee established to promote collaboration and cooperation, bridging the gap between SFR vendors and operators. Within this new council, Myers is actively involved in a communications subcommittee, which is charged with creating an SFR data dictionary that would include definitions/descriptions regarding topics (like job completion, order date and business day versus calendar day) and an initiative around score carding and how to manage and standardize it. Establishing consistency and conformity across the industry allows all participants to work more effectively.
Maximizing on-site touches
SFR service providers are looking for ways to maximize on-site touches to improve efficiencies, reduce costs if possible and speed up tenant turns. In some cases, for example, partners might be able to start work on Day Zero of a tenant’s departure. If they can start on the same visit as the scoping inspection, versus scoping and then returning later to start work, operators can save time and increase efficiency which results in less property downtime.
Centralizing services for SFR efficiencies
A centralized approach to services can reduce vendor management hassles and generate financial savings due to improved efficiencies. We’ve seen centralized lawn services benefit our clients, and now we’re starting to see the shift in other arenas, including utility management, inspections, occupancy checks and snow removal. We expect this trend to grow because SFR operators are seeing the benefit of working with one partner across a market, a region or even the country due to the consistency of work, standard (and predictable) pricing, and the reduced hassle of dealing with multiple providers and technology solutions.
Trying to get ahead of squatters
SFR service providers are actively seeking creative ways to get ahead of issues related to evictions and squatters. Whether it’s increased inspections or more security and technology used to help safeguard a property, providers across the industry are working to address these issues. It’s a difficult challenge without a clear foolproof solution, but increasing inspections is certainly one strategy we’re seeing SFR operators effectively deploy. More frequent eyes on a property allows action to be taken sooner if something at a property appears amiss.
Ongoing growth in build-to-rent (BTR)
Growth continues in the build-to-rent (BTR) space, fueled by sustained high interest rates and home prices and a shortage of available affordable housing. Along with the BTR growth has naturally come an industry focus on how to enhance efficiencies and better serve renters.
Myers participated in a panel at the recent IMNF SFR (East) conference, Property & Asset Management of Your BTR, to discuss BTR management best practices regarding initial lease-up strategies, amenities for renters, tenant turns, insurance, maintenance coverage and more.
Industry consolidation
Industry consolidation is on the rise, highlighted by the announcement of the merger between Mynd and Roofstock. As SFR operators and third-party management groups acquire more portfolios, mergers and acquisitions like these signal a potential sizable shift in the industry. The growth that organizations experience through these consolidations creates new opportunities as well as challenges in managing them. That’s where the comprehensive SFR services of an experienced, trusted partner like MCS can shine.
Workforce housing
Driven by the shortage of affordable housing, we’re seeing an uptick in more substantive renovations by owners to maximize SFR properties categorized as workforce housing. The focus is on achieving quality, safe, clean and functional housing through renovations to maximize these investments, while keeping them affordable for individuals and families who prefer the benefits of renting a home versus an apartment.
Contact MCS Today
MCS is committed to staying on top of shifts and trends in SFR and to being an active participant in finding solutions for industry-wide issues. To learn more about how we can help you maximize your SFR investments, contact Jason Myers or Kerry Anderson today.
