Why New Construction Homes are Outperforming Older Homes and the Market
Summary
This article from BiggerPockets advocates for investing in new construction rentals over older homes, highlighting their lower maintenance costs, higher rent potential, and longer tenant retention. Hosts should consider the benefits of new construction, particularly in growing markets, for a more scalable and profitable STR business.
Key Insights
- •New construction builds often qualify for attractive financing programs, with lower interest rates, longer terms, and special incentives.
- •Tenants tend to stay longer in modern, energy-efficient homes, leading to fewer turnovers and less money spent on cleaning and re-leasing.
- •New construction rentals often have lower maintenance costs due to builder warranties covering major systems for years, and can command higher rents due to modern features and energy efficiency.
Action Items
- ✓Consider investing in new construction rentals, especially in growing markets, to potentially benefit from lower maintenance, higher rent, and longer tenant retention.Effort: highImpact: high
Tools & Resources
- →Rent To Retirement: Visit Rent To Retirement to explore new-build opportunities in high-growth markets.(renttoretirement.com)
Common Mistakes
- ⚠Failing to consider the long-term maintenance costs and potential for tenant dissatisfaction associated with older properties can negatively impact profitability.
More from Pricing & Profitability
This article discusses Kansas City's high occupancy rates compared to other World Cup host cities, raising questions about the effectiveness of efforts to increase short-term rental availability. It implicitly touches on market trends and the impact of major events on the STR market. The article likely explores whether increased rental supply can meet demand while analyzing the city's approach to STRs.
Realtor.com's report on best mountain towns for Airbnb returns reveals key locations for STR investment. The analysis likely includes data on occupancy rates, ADR, and RevPAR to identify profitable markets. Understanding these trends helps hosts optimize pricing strategies and choose lucrative destinations.
Airbnb is offering a $750 incentive for some hosts in Georgia during the FIFA World Cup, potentially boosting occupancy and profitability. This program seeks to capitalize on increased demand from the international event, offering financial benefits to participating hosts. Learn how to qualify and leverage this incentive for your STR.
Curated by Learn STR by GoStudioM