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Senior Vice President Jay Byce with ResiBuilt Homes joins President of Denim Marketing and Show Host Carol Morgan on Atlanta Real Estate Forum Radio to delve into the burgeoning build-to-rent industry.
A proud Georgia native and graduate of the University of Georgia Terry College of Business, Byce has a wealth of experience in real estate planning and investment. Since its establishment in 2018, ResiBuilt Homes has erected nearly 1,200 homes, primarily within the metro Atlanta area. The company’s footprint extends beyond Atlanta, with expansions into Orlando, Tampa, Charlotte and Greenville, solidifying its position as the ninth-largest private home builder in metro Atlanta. Notably, ResiBuilt Homes has earned its place among Atlanta’s Top 10 Private Builders, as recognized by MetroStudy.
Amidst a landscape of high mortgage interest rates and dwindling home inventory, the demand for build-to-rent communities like those offered by ResiBuilt Homes continues to surge. However, the accompanying rise in development costs has led to increased community development and housing affordability challenges.
Byce anticipates a further decrease in available homes for sale within the next two to three years, exacerbating the existing inventory shortage.
Byce said, “Due to the economic climate, we’ve had to pivot our business model, and we’re offering more for-sale product.”
ResiBuilt’s for-sale product complements its existing build-to-rent portfolio. The company specializes in crafting high-quality entry-level and first-time move-up homes, with townhomes and detached homes priced from the $300,000s experiencing steady sales of three to four units per month. While this transition necessitates adjustments, such as a reduction in the pace of construction from 10 to 12 homes per month to 3 to 4 homes to accommodate the evolving market dynamics, ResiBuilt Homes remains committed to adaptability and resilience.
The appeal of build-to-rent communities transcends generational boundaries, with millennials seeking alternatives to traditional homeownership due to financial constraints and 55+ drawn to the low-maintenance lifestyle afforded by rental properties. Byce comments that many active adults are repelled by the label that comes with a 55+ age-restricted community.
Investors also recognize the allure of build-to-rent communities, drawn by the promise of consistent cash flow and the option to easily sell properties when desired.
On the BTR model, Byce said, “We prefer to own homes longer and be in partnership with the residents that we have.”
ResiBuilt Homes aims to challenge lingering stigmas surrounding renters by creating rental communities that mirror neighborhoods of owner-occupied homes. Most ResiBuilt rental communities experience an average tenant tenure of four years, which is comparable to that of homeowners in similar price brackets.
Renters’ preferences closely align with those of homeowners, emphasizing the importance of amenities and convenient location attributes. Developers have responded to that demand with various rental homes and communities. The ResiBuilt Homes approach involves developing smaller, convenient neighborhoods with managed amenities tailored to residents’ needs, such as dog parks and walking trails while ensuring proximity to essential services and retail hubs. In its larger communities, the builder offers an array of traditional amenities such as a pool, clubhouse and tennis courts.
Amidst the growing popularity of rental communities, there are notable challenges, including issues related to squatters. Jay Byce sheds light on this issue, noting a spike in incidents last year. While the situation has improved, organized fraud was rampant, with individuals listing rental houses they did not own and taking security deposits from unsuspecting tenants seeking no credit check options.
ResiBuilt Homes, in contrast, upholds stringent screening processes, conducting credit and background checks on all applicants. Byce emphasizes the importance of accountability, highlighting that the company’s approach prevents the exploitation of vulnerable individuals who may not qualify for leases elsewhere. Unfortunately, victims of such scams face prolonged eviction processes, lasting from nine to 18 months, which adversely impact investors and communities.
These fraudulent activities not only tarnish the reputation of rental communities but also pose challenges for property owners. harm individuals directly involved and Byce said, “These people were preying on people that weren’t going to be able to lease homes anyway…That hurts investors, and it hurts communities.”
ResiBuilt Homes is in the process of developing new home communities with for-sale homes in Loganville, Douglasville and Bethlehem.
Tune into the full interview above for more information about ResiBuilt Homes, or visit https://ResiBuilt.com/.
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, podcasting since 2011 and 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.