ARK Homes For Rent
ARK Homes For Rent has Laser Focus on Resident Experience By Carole VanSickle Ellis When ARK Homes For Rent founder Jordan Kavana founded the data-driven single-family-residential management company that would eventually evolve into ARK Homes, the idea of SFR as an industry was barely a blip on the industry radar. That company, which prided itself on handling the entire spectrum of property management from research and acquisition to renovations, renting, and resale all in-house, worked with strategic partners to complete more than $5 billion in real estate transactions in the southeastern United States before establishing ARK Homes in 2021. Kavana, who now serves as chairman of the company, continues to guide corporate focus toward the SFR residential experience, debuting innovative products and health and wellness strategies to complement and optimize ARK’s fully integrated management and investment strategy. “Because we are a fully integrated property ownership and management company, we have full control over ARK Homes For Rent’s growth, its resident experiences, and operations,” said CEO John Isakson. “ARK Homes prides itself on being as focused on the residential experience as on the real estate.” “The SFR industry is a small, intimate vertical,” observed COO Miles Adams. “Our willingness to embrace technology, innovation, and continuous improvements makes ARK Homes stand out. We are really proud of our work, especially from a people perspective.” New Homes Net Optimal Results Isakson explained that one of the most important ways ARK Homes For Rent demonstrates commitment to resident experience is the company’s determination to acquire only new construction homes. This keeps repairs and maintenance to a minimum in most cases, he said, as well as helping both ARK Homes and residents avoid the inconvenience and expense associated with the major capital expenditures that often accompany renovation and maintenance (R&M) in older properties. “If you look at our competitors in this space who do acquire older homes, you can see their R&M and CapEx rates are much higher,” Isakson concluded. “Our strategy is unique and so successful partly because we only buy new homes,” Adams chimed in. “This makes our product particularly attractive in the southeast and in Texas.” The Southeast remains a hot spot for new and relatively affordable new construction, permitting more residents access to this type of rental property even if personal preference, interest rates, or general affordability issues prevent them from owning the home. “The rental rates on a new-construction home acquired by ARK Homes For Rent are also typically significantly less than what it would cost a resident to own the same home in the same location,” Isakson noted, citing a recent article in the Wall Street Journal in which two ARK Homes residents described their decision-making process around opting to rent in the Atlanta, Georgia, area instead of buying a home. “They preferred to have that $400 or $500 in their pockets each month rather than own the home,” he continued. “In our resident base, we are seeing a big move away from homeownership and the financial strain that can be associated with it.” In that WSJ article, satisfied ARK Homes resident Alicia Couch described the decision this way: “It is not that we cannot afford to buy; it is that we don’t want to and we don’t feel like it’s worth it.” She said they planned to buy new furniture and repaint their daughter’s bedroom, taken three vacations in the last 12 months, and added to their savings as a result of renting from ARK instead of buying a home. She also noted the benefits of not having to deal with landscaping issues, such as mowing the lawn. “It is all about making sure we have the right properties and we are communicating with residents in the right ways to enrich their lives,” Adams said. “We are constantly expanding and evolving solutions throughout our company.” Prioritizing Health & Wellness in Residents and Residences Another element that makes ARK Homes stand out among other SFR providers is its ARK Homes For Rent app featuring its ARK Living platform, a proprietary software received by every resident upon acceptance of their application. The app features many typical features associated with SFR residential apps, including access to repair and maintenance professionals, pest control, and rent payments. However, ARK Living also contains a popular wellness element Isakson credits as the reason for ARK’s high level of resident engagement. “It is one of the most robust programs in the industry,” he said proudly. The ARK Living app was designed not just to fulfill logistical requirements for residents and management teams, but also to create community and promote wellness, Adams explained. “We do not want to offer just the commodity of a roof and four walls. We want to make sure our residents have access to custom content that will help them with the things they are interested in from a personal perspective, be it better sleep, exercise, meditation, or other elements of their resident experience.” Isakson called the acceptance rate for the app since its debut earlier this year “tremendous,” and he credited founder Jordan Kavana with the idea for the program. “The idea is that the app answers the question, ‘How can we do good, create value, and also help retain our residents?’” Isakson said, noting the ARK Homes For Rent resident tends be getting married or is already married, has children or is planning on having children in the near future, thinking hard about school systems, and “simply does not want to move all the time.” He concluded, “It cannot be ‘just about the rent check;’ it has to be about community and a sense of wellbeing. When we achieve that, we provide people a place to live that truly feels like home.” Creating the Best Opportunities in the “Forever Renter” Trend In 2022, ApartmentList.com reported that the percentage of Millennial renters who were planning to “rent forever” had hit an all-time high of 18%, up from 11% just four years (and a global pandemic) prior. At that time, Forbes contributor
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