For folks that aren’t familiar with Real Estate Syndications, it involves multiple investors pooling their capital together to purchase no-hassle, hands-off investment properties that deliver passive income and appreciation to the investor.
Because the success of a value-add real estate syndication is largely driven by the sponsor's ability to increase the rental rates, it is important to understand what renters value when deciding on an apartment. With that in mind, let’s review the critical takeaways from the 2022 Renter Preferences Survey Report, which gathered input from over 221,000 renters, living in 4,564 communities nationwide across 79 markets:
Takeaway #1 - The Future is Remote
64% of renters expect to be working remotely about the same next year as they are this year
Because of this 35% indicated an interest in their apartment community offering shared workspace
Takeaway #2 - The Future is Smart
70% of renters said they were interested in or would not rent an apartment without a smart thermostat
67% of respondents also indicated interest in leak detection systems and water-saving features
Takeaway #3 - The Future is Organized
72% of renters want modular closet and drawer systems
This represents a 36% interest since 2020
Takeaway #4 - The Future is Connected
86% of renters indicated that reliable cell phone service is a must have
90% of respondents said they would not rent an apartment with poor internet connectivity
Takeaway #5 - The Future is Pet-Friendly
33% of respondents indicated they lived with a pet or service animal
70% of pet owners surveyed are dog owners which drove interest in dog parks, pet washing stations, doggy daycare and grooming
Takeaway #6 - The Future is Active
70% of renters are either interested in or won’t rent without a community fitness center
29% of respondents that do not use a community fitness center cited lack of or outdated equipment as the reason why
Takeaway #7 - The Future is Healthy
71% of respondents reported interest in enhanced indoor air quality
90% of respondents indicated that they would not rent an apartment that lacked air conditioning or an in-unit washer/dryer
Takeaway #8 - The Future is Outdoors
73% of renters indicated interest in a community pool
Unsurprisingly, renters in large cities a cited interest in outdoor amenities like BBQ areas and rooftop space
Conclusion
These 8 critical takeaways from the 2022 Renter Preferences Survey Report, help paint a solid picture of what renters want going forward. When analyzing the value-add business plan of a property, it is important to understand if the sponsor has included the amenities that renters value. This along with the local market, is one of the keys to selecting a great real estate syndication investment.
Our team here at Limitless Investing independently reviews every syndication opportunity through this and many other lenses prior to sharing with our investors to ensure they are only receiving high-quality, pre-vetted opportunities.
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