The hotelization of multifamily rentals is only just starting and investors and developers are starting to notice.
The days of landlords offering rigid rental terms and limited services are slowly disappearing as private real estate is quickly transforming from an asset class to a service. This transformation is more more visible in dense urban markets where people are trading space for convenience.
The change was triggered by tenants, mostly millennials, who’s lifestyle is dominated by speed and convenience. Now landlords need to build and deliver the amenities that are going to sell the lease and retain tenants once they’re there.
But landlords and investors have long valued predictable long term income stream that come from multi family apartments. What does this shift in tenant demand mean for them and how to they deal with the risks that come with this change. From shorter lease terms to added amenities, how do investors and developers position themselves to take advantage of the trend without taking too much risk.
TDB @ Common