In It for the Long Run: Mark Wolf on Build-for-Rent Communities | John Burns Real Estate Consulting

In It for the Long Run: Mark Wolf on Build-for-Rent Communities



Successful restaurants have great service, the right menu, and a long-term outlook. A good location also doesn’t hurt. Mark Wolf, CEO and founder of AHV Communities, has a similar mindset when executing successful build-for-rent (BFR) communities. BFR communities are purpose-built rental communities that merge the product benefits of single-family rentals with service and amenities typically seen in apartment complexes. In this first of three BFR-related episodes, Mark describes AHV Communities as an “apartment company masquerading as a home builder.” Keep reading below to learn what Mark prioritizes when developing and operating BFR communities.

The game changers

  • Excellent service differentiates AHV Communities from single-family rentals and even many other BFR communities. Top-notch onsite management and maintenance are key.
  • Full amenity packages whenever possible.
  • Designing the right product with an extensive hold period in mind ensures today’s Class A community is not tomorrow’s Class C community.

BFR vs. SFR

  • Professional management is a key motivator for renting in a BFR community as opposed to a single-family rental (SFR).
  • Community social events can help instill a sense of community, another critical appeal.
  • Amenitized BFR communities can command a premium of up to 10%–15% over “mom and pop” SFRs.

Mark’s outlook on the future

  • Mark expects that as the BFR space matures, communities will be more clearly segmented by Class type (Class A, B, C) and by product type.
  • The number of BFR players will thin out, mainly due to consolidation.
  • The share of housing stock owned by institutional investors will expand. It is much more efficient to buy or build homes in bulk versus accumulating stock in one-off deals.


For a full transcript of this episode, click here.

 

Don’t miss out on future episodes!

The New Home Insights podcast is available on various platforms, including Apple Podcasts, Google Podcasts, and SpotifyTo receive email notifications whenever a new episode is released, fill out the form found on this page.


Dean Wehrli If you have any questions about our podcast, please contact Dean Wehrli, Principal at (916) 647-3263 or by email.
Shelly Chen If you have any questions, please contact Shelly Chen, Consultant at (916) 753-4631 or by email.