AMRE Solutions built an automated valuation model for investors, banks and servicers to determine rental prices on single-family homes.
As homeownership continues to fall after the crisis, rental demand keeps climbing. In the second quarter, vacancies on homes held for rent fell the lowest point since 2002, according to government data.
The Federal Housing Finance Agency also launched a pilot program this year to convert foreclosed Fannie Mae and Freddie Mac homes into rentals.
“Data is key for rentals. Information has been historically dispersed, unregulated and extremely limited in the MLS,” said Ryan Lilly, president of AMRE Solutions in Denver.
AMRE Solutions looks at rental comparables from a database of 500,000 properties, both those being advertised and those for which rent is actually being collected by professional property management companies around the country.
Modeling adjusts for differences between advertised and listed homes. A range of estimates on the rent is provided, including rental trends in the area, city and state.
The company will also handle some the process from its new rental platform. They verify occupancy, handle existing tenants, determine if a cash-for-keys offer is needed, then contacts local property managers to get repair bids and process payments.
Lilly said the activity from investors looking to jump into some part of the rental space is picking up. Many, he said, have plenty of multifamily experience, but a lot of incomers are still learning how to handle single-family rental homes.
AMRE services rental properties on behalf of investors in several states included some hardest hit ones Arizona, Florida, Nevada.
“We have a few hundred properties under management and are looking to grow this number substantially in the next few months,” Lilly said.
jprior@housingwire.com
