Single-Family Rentals

Of the 137.2MM Housing Units in the United States, 15MM are Detached Single-Family Rentals

RCLCO has been engaged with the single-family rental industry for the past decade, first working with aggregators of foreclosed single-family properties following the great financial crisis, then shortly thereafter advising some of the early pioneers of build-for-rent or build-to-rent (BFR/BTR) communities. Our experience in the space is both broad and deep in terms of:

Client types (developers, builders, investors/capital, operators, etc.);
Geographic diversity; and
Level of engagement, which ranges from strategic planning work for entities wishing to enter the space, to site specific market analyses.

Of the ~15M single-family rental units, approximately 2% are institutionally-owned, and RCLCO’s experience covers the spectrum of the institutionally-owned, single-family rental landscape, including:

SF rental scattered site portfolios: collections of scattered site homes that are operated under a single operating platform
Build-to-rent or Build-for-rent (BTR/BFR) Communities: purpose-built single-family rental communities that are self-contained developments sometimes featuring dedicated amenities as well as on- or off-site management

Within the BTR/BFR space, we work across an array of product types, including:

Horizontal multifamily
Single-family attached (such as townhomes, duplexes, etc.)
Single-family detached
Hybrid models

Single-Family Rentals Service Offerings

RCLCO will help the Client understand how well the single-family rental portfolio aligns with broader supply and demand conditions in the subject market. We will analyze the single-family rental market fundamentals in each of the relevant submarkets in which the portfolio properties are located, focusing on supply (prevailing rents and occupancies in the submarket as well as for like product) and demand conditions that could support pushing rents in the future.

RCLCO will ascertain likely achievable rent levels, based on an analytical pricing framework, as well as high-level demand fundamentals based on lease-up of like product and overall market growth dynamics. This initial market assessment will provide a “go/no-go” evaluation driven by how well the RCLCO-derived achievable rents and absorption align with the Client’s initial underwriting efforts.

RCLCO will complete an independent and comprehensive feasibility study that will provide site-specific conclusions related to target market, achievable rental rates, programming recommendations (unit sizes, bed/bath configurations, unit mix), and lease-up velocity for the proposed units by product type.

We conduct in-depth market opportunity analyses to identify the markets and submarkets that rate most favorably for investment, prioritizing and ranking the submarkets where you should focus your investment and development efforts. Working together, we determine the ways to prioritize and rank markets best suited for your development concept(s) and financial objectives, with the goal of developing a model and series of criteria that can be updated on a relatively frequent basis to account for changing market trends and dynamics over time.

Drawing on prior RCLCO research and the company’s experience, provide a comprehensive overview of the build-to-rent, single-family rental sector, focusing both on market and demographic trends impacting the sector as well as operational and capital markets dynamics that are influencing the growth and trajectory of this development typology.

Conduct direct consumer testing, through online surveys and/or focus groups, to test various BFR concept types nationally, regionally, or locally. Gain confidence around various features, finishes, amenities, etc., that consumers are willing to pay for.

Revisiting and challenging your organization’s strategy every few years is key to unlocking enterprise growth. A strategic plan and the planning process itself offers a competitive edge, enabling you to focus talents and energies, and to measure achievements against internal and external benchmarks. Our team offers customer knowledge, innovation management, turnaround planning, and risk management services for those involved with or exploring the single family rental business.