Emerging asset class pushes demand for rental data
As investment activity in the single-family rental marketplace continues to grow, so does a demand for specialized, analytical rental market data, claims Walter Charnoff, CEO of RentRange.
Over the past year, single-family rentals has seen a greater number of investments, spawning labelling the segment as a new asset class.
“Institutional migration into this sector carries with it an abundance of opportunities, including a liquid disposition channel for servicers; an attractive vehicle for both debt and equity investors to re-enter the U.S. housing market; and a fresh supply of single-family rental inventory for displaced homeowners,” said Charnoff.
Rental pricing data that is based on analysis — or rental intelligence — is a key element of the rental sector. In fact, servicers actually require reliable rental information before they will evaluate investor-centric disposition options.
In order to identify performing geographies and gain accurate perspective for purchasing decisions, investors need market-level and address-level data.
By using objective rental estimates, servicers and investors are able to achieve optimal pricing on rental homes and accurately watch the performance of rental portfolios.
RentRange, who spent five years establishing its data warehouse, was the first to release a reliable address-level rental Automated Valuation Model.
“Before RentRange, data was subjective, lacked data depth and quality, and failed to produce statistically sound results,” the company said in a press release.
The company’s rental intelligence has since been adopted by several of the nation’s largest institutional investors, rating agencies, mortgage servicers and valuation providers.