Benefits of owning brand new vs. used rental houses

If you are a landlord you should consider buying brand new houses to use as rental properties. The benefits of brand new houses are numerous.

For institutional investors the benefits of buying brand new houses include increased rents, lower capital expenditures, ( none in the first year) and a prospective tenant will stay longer in a brand new house. At Kinloch Partners we average 4-5 years when we lease a brand new house and 2-3 years when the house is preowned. Also, we have found a brand new house will appreciate more than a used house. 

There are a number of institutional owners that are specializing in brand new rental houses. 

At Kinloch Partners we are a leader in building and leasing brand-new rental houses in Nashville, Atlanta, Greenville/Spartanburg, Columbia, Raleigh and Bentonville, Arkansas. 

There are a number of REITS and  private equity funds that have embraced this concept and many more companies are taking advantage of this business strategy each year..