Podcast: Play in new window | Download
Subscribe: Podchaser |
Michael Paul, director of investments at Parkland Communities, joins host Carol Morgan for this week’s Atlanta Real Estate Forum Radio episode. In this podcast segment, Paul discusses the rise of built-to-rent (BTR) communities in Atlanta.
The build-to-rent sector has seen enormous growth in the last few years, especially in the Atlanta market. Higher-income individuals increasingly seek living opportunities that feel like home without the maintenance and upkeep of owning. As there is more demand for luxury rentals, investors have begun to take notice and invest in BTR communities across the state.
“I’ve always just been a believer that if consumers want it, investors will follow,” said Paul. “I think we’ve seen that in a big way.”
What does it mean to be “renters by choice”?
These individuals want somewhere to spread out and put down roots without the hassle of upkeep and maintenance. From young couples just starting to grow their families to empty-nesters looking for a change of scenery, the BTR sector serves a wide range of higher-income residents.
“COVID certainly accelerated the push for more spaces,” said Paul. “We all were working remotely, and people with kids or just two people working in the same household needed to be separated.”
Many residents also seek this lifestyle because it allows for pets to tag along, unlike many traditional apartment complexes. Built-to-rent communities, like Parkland Communities, embrace spacious floorplans, backyards and community spaces that allow residents and their pets to stretch their legs.
What is the current state of the BTR sector?
The supply of BTR communities is not keeping up with demand. Challenges in zoning and a lack of investors contribute to the limited number of BTR units on the market.
The BTR sector has catapulted in the last few years, taking over the southwest and creating opportunities for a diverse group of residents. However, BTR is still in its beginning phases, which looks like a gamble to real estate investors. There is limited data to support the rise of this sector, and investors don’t want to bite without supportive operational and transactional histories.
Paul said, “But I’ll tell you evidence in the last six months is that it’s a resilient sector, and I think, we’re just starting scratching the surface here.”
What are real estate investors looking for today?
Most investment groups are looking for BTR projects that mimic multi-family housing from an operational standpoint. That translates to 150+ single-family or townhome units with amenities and onsite management.
Paul said, “I do think you’ll have ample demand because, from an investor’s perspective, living in either one of those is still preferable for most people than it is to live in a multi-family deal.”
How important is property management for BTR residents?
Many BTR communities have tried different management strategies, some keeping the same style as multi-family complexes and others adopting a more personalized approach with residents.
“The property managers are there in my mind for two reasons,” said Paul. “One is to serve the tenants, making sure they are comfortable and have a desirable lifestyle. Another part is back to the investors, right? I think you have to have a property manager who solves the investors’ needs, which means trying to make it as efficient as possible and kind of a clear operating model.”
Paul emphasizes how important property management is but indicates that strategy is still up for debate.
Tune in to the full interview above to learn more about build-to-rent. Learn more about Parkland Communities at ParklandCo.com.
About Parkland Communities
Parkland Communities is a privately owned real estate development and investment firm that specializes in residential communities. It uses the latest market data to secure top locations across Georgia and provide residents with comfortable, modern communities to call home. With 20 years of experience in the Atlanta market, Parkland Communities is your resource for build-to-rent residences that your family’s comfort for years to come.
Podcast Thanks
A special thank you to Denim Marketing for sponsoring Atlanta Real Estate Forum Radio. Known as a trendsetter, Denim Marketing has been blogging since 2006 and podcasting since 2011. It is currently working on strategies for the Google Helpful Content update and ways to incorporate AI into sales and marketing. Contact them when you need quality, original content for social media, public relations, blogging, email marketing and promotions. A comfortable fit for companies of all shapes and sizes, Denim Marketing understands marketing strategies are not one-size-fits-all. The agency works with your company to create a perfectly tailored marketing strategy that will adhere to your specific needs and niche. Try Denim Marketing on for size by calling 770-383-3360 or by visiting www.DenimMarketing.com.
The Atlanta Real Estate Forum Radio “All About Real Estate” segment, presented by Denim Marketing, highlights the movers and shakers in the Atlanta real estate industry – the home builders, developers, Realtors and suppliers working to provide the American dream for Atlantans. For more information on how you can be featured as a guest, contact Denim Marketing at 770-383-3360 or fill out the Atlanta Real Estate Forum contact form. Subscribe to the Atlanta Real Estate Forum Radio podcast on iTunes, and if you like this week’s show, be sure to rate it.
