For tenants wanting all the perks of a single-family home without the responsibility or cash needed to own one, single-family rentals are the answer. Investors have listened and posted a record buying spree in 2020, according to Business Insider. Institutional investors purchased almost 55,000 homes in the first three months of 2021, with one investor stating it’s planning to dish out $1 billion in single-family home purchases. Others are developing single-family built-for-rent communities, such as Transcendent Investment Management, which began in 2014 and now manages more than 1 million square feet of single-family homes.
"We decided to no longer buy older product, but to partner with homebuilders and be a wholesale buyer of new homes," CEO Jordan Kavana told Insider.
Today, nearly 30 states are home to such developments cropping up outside cities like Phoenix, Nashville, and Atlanta, according to the Wall Street Journal,
"We didn't want to get into homeownership," Joe Paul, a resident of a community in Arizona, told the Journal. "We still want to travel and don't want to have to maintain a house."
Offering professional property management, routine maintenance and repairs that are the responsibility of the landlord, not the tenant, the new developments provide a sort of souped-up version of the homeowners' association model that some communities already have.
In addition, some tenants have gone from owner to renter — and welcome the flexibility of life without a mortgage.