REI Nation Reports Increases in Key Metrics for the Company and its Single-Family Rental Investors
REI Nation, one of the largest turnkey real estate investment companies in the U.S., announced its half-year 2022 single-family rental performance metrics. During the first half of the year, the company paid its single-family rental investors more than $42 million in net rental income, a year-over-year increase of 19%. By year-end 2022, REI Nation expects its net rental income payments to top $80 million, a year-over-year increase of 9.9%.
Rent rates, which currently average $1,500 per month, increased for 98% of REI Nation-managed lease renewals with an average increase of 6% across the company’s 14-market footprint. In high-demand markets, such as Dallas, average rent rates increased by as much as 8% or 9%. The average cost of a single-family rental among REI Nation investors is currently $228,000 compared to July of 2021 when the average cost was $190,000.
To date in 2022, the company has completed 495 renovations to existing single-family rentals, with an additional 234 homes in the process of renovation. REI Nation continues its push into new-build rental construction which is gaining in popularity across the country to combat historically low housing inventory. As of June 30, 2022, the company has completed or is in the process of completing 97 newly constructed homes in REI Nation markets, adding to the 38 new homes the company built in 2021.
Vacancy rates for the company remain historically low at less than 2% across all markets which is lower than the industry average, and on-time rental collection averages more than 96%. REI Nation reported its average length of stay for half-year 2022 of more than seven years, which it has maintained for six straight years and which is significantly higher than typical industry standards of three to four years.
Among its investor clients, less than 20% are all-cash buyers, and more than 80% use some form of leverage or lending.
“Even though the rental investment market is seeing an overall slowdown due to rising interest rates and continued downward pressure from low housing inventory, our investors are seeing gains in rental income and continued high average resident stays,” said REI Nation Partner Chris Clothier. “That speaks to our model of high-quality renovations coupled with property management that puts residents first which, in turn, provides our property investors with stable, passive income over the long haul. The rental market continues to increase, and that puts our investors in a great place to build long-term wealth with a high-performing rental property portfolio.”
REI Nation works with property owners from across the globe who invest in single-family rental properties as a passive income stream, with the majority of owners investing in remote properties located away from where they live.
The company has properties available for investment in Memphis, Dallas-Fort Worth, Houston, San Antonio, Huntsville, Birmingham, Tuscaloosa, Oklahoma City, Tulsa, Little Rock and St. Louis. Its property management division, Premier Property Management Group, operates in these 11 markets as well as in three additional cities: Nashville, Austin, and Jackson, Tennessee.
About REI Nation
REI Nation is one of the largest turnkey real estate investment companies in the U.S. with more than 7,400 properties under management, 3,414 property owners, and $1.45 billion in residential rental property assets under management. The company provides individual real estate investors with end-to-end, turnkey solutions, including finding potential rental properties, analyzing ROI and revenue potential, managing required renovations, securing and vetting residents, and providing ongoing property management services through its Premier Property Management Group. REI Nation publishes The Grind, a free subscriber-based platform and podcast offering tips and tactics designed for investors and entrepreneurs who want to increase their success in business and real estate. Memphis-based REI Nation, formerly Memphis Invest, was founded in 2003 and is privately held. More information can be found at reination.com.
