Renovated Rental vs New Build Rental

[Malcolm Kruger]

I currently work for a SFR fund that is looking to get into the build-to-rent space. When underwriting for rent we use comparable properties; but in some of our markets we do not have any new build homes to make an assessment for the new build projects.

Have any property managers here seen a difference in the way new builds rent compared to recently renovated homes? And do you have any other insights on renting for new build single family property compared to recently renovated?

-Is there higher demand?

-Should we project a certain $/% higher than a given comp that is recently renovated and rented?

Any insight will help!