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-to-rent (BTR) communities. BTR 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 BTR-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 BTR communities.
Mark Wolf, CEO and Founder, AHV Communities
The game changers
- Excellent service differentiates AHV Communities from single-family rentals and even many other BTR 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.
BTR vs. SFR
- Professional management is a key motivator for renting in a BTR community as opposed to a single-family rental (SFR).
- Community social events can help instill a sense of community, another critical appeal.
- Amenitized BTR 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 BTR space matures, communities will be more clearly segmented by Class type (Class A, B, C) and by product type.
- The number of BTR 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.