Data shows that single-family rentals are returning to pre-pandemic rates and prices are holding steady. There has been a 2.9 percent gain year-over-year, showing slow growth. Build-for-rent starts were almost 10 percent higher during the second quarter of 2024 than in the second quarter of 2023, with 23,000 starting new builds. 83,000 homes began construction in the last 4 quarters, which is up almost 20 percent in comparison to the previous 4 quarters' 69,000. This increase in SFR property volume is being fueled by high interest rates and tight housing supply.

As a result of the pandemic, many homeowners decided to stay put instead of moving and buying another home at a higher rate, resulting in a "lock-in effect." With that mortgage lock-in-effect starting to ease, the need for efficient SFR solutions is more important than ever. ServiceLink can help. 

The benefits of a centralized model

With SFR property investments having historically been a relatively small part of the overall real estate market, lately there has been tremendous growth. "Our centralized model makes a lot of sense for investors and lenders of real estate investment loans, because they can use the same title company regardless of transaction details or locations. Because of our centralized model, there is no need to 'reinvent the wheel' every time a client opens a transaction, saving us and our clients a lot of time," says Jason Da Silva, assistant vice president, single-family rental services. He adds, "We have in-house access to underwriters for accelerated decisions and business-based title underwriting decisions. This means that we can provide each client with a streamlined title and closing experience." 

Quick resolution of title issues

The lack of inventory in past years has posed a struggle to those in the market, causing them to buy distressed properties that later showed issues. Lately, the market has shown a gradual inventory increase. With the right help, investors can avoid those similar problems and take advantage of the increase on the market. "Our team is highly knowledgeable, with years of experience and we do a lot of research to quickly get to a resolution on a variety of title issues. Our curative team is doing the legwork that many title companies pass to the borrower, sellers and lenders, which helps to expedite the title process. Our team is also very good at problem solving. For example, in this market, probate complications can be common. To address that, we have a team that focuses specifically on probate issues, so we're prepared to help investors navigate those waters," says Da Silva.

Reporting and technology that effectively meet the needs of investors

Helping and guiding investors is very important in a market that can be riskier. Having an educated partner to help them make informed and confident decisions is crucial. "ServiceLink has created customized SFR property reports and reviews specific to what investors are looking for. We're able to align our reporting with their systems to give them real-time information," says Da Silva. He also highlights the importance of clients as individuals. "Our focus is to exceed each of our individual client's needs – especially when it comes to the data we collect and how we display it. We're willing to customize our property reports and reviews on a per-client basis, with their individual underwriting requirements in mind."

Technology in the mortgage space has generated increased demand as it provides many benefits. ServiceLink's 2024 State of Homebuying Report found notable year over year spikes in the usage of eSign technology up 12 percent and digital scheduling tools up 15 percent. Da Silva says, "From the closing perspective, we offer the ability to eClose, which offers investors flexibility in the closing transaction: they can close from their home, their office, or even while traveling. We have the experience and notary panel to help investors integrate eClosing into their workflows."

Da Silva also emphasizes the importance of taking the burden off the borrower and lender. "In addition to customization and technology, my team's major strength is our diligence and hands-on approach to their work. My team does a ton of research – through online records when possible but also by making phone calls when necessary. Most title companies put that burden on the borrower and lender, but my curative team does as much as possible to make the transaction easy for the investor and lender."

A look ahead at the SFR market

With inventory slowly starting to tick back up, the turnaround is going to be quick. "I know that there will be a lot of continued growth as the market begins to stabilize and rates continue to drop. At the moment, we're working on customizing even further so that our reporting meets the specific SFR property needs of our clients, as well as increasing customization of the title product itself to meet underwriting requirements."

For more information, visit www.servicelink.com/investors.

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