How single-family rentals redefine alt-lodging

NATIONAL REPORT – Single Family Rentals (SFR), defined as one-unit, attached or detached properties, are not new – they have long been an important component of the rental housing market. However, the sector has expanded significantly since the 2008 financial crisis, when institutional investors began purchasing large portfolios of foreclosed homes.

While the opportunistic purchase of distressed housing has dissipated with the end of the Great Financial Crisis, institutional investment in SFR from private equity firms, REITs, and pension funds continues unabated. As of 2025, SFRs total some 17 million homes in the U.S., representing one-third of the rental housing stock. However, it should be noted that even though institutional players in aggregate now own hundreds of thousands of units, their combined share of the SFR market remains well below 10%.

In addition to institutional investment, rapid growth in the SFR industry in recent years has been fueled by changing demographics, rising home prices, and evolving consumer preferences. Growth has been further driven by expansion into more transient oriented resort markets, leveraging operating economies into third-party management of non-owned residences and communities and a push into selected international markets. Increasing investment in this promising sector has also resulted in increased competition, rising resident expectations, and pressure to reduce churn and vacancy rates.

Growth has been further driven by expansion into more transient oriented resort markets, leveraging operating economies into third-party management of non-owned residences and communities and a push into selected international markets.

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Once viewed primarily as a passive investment strategy, SFR has matured into a dynamic, competitive space that increasingly mirrors elements of hospitality and customer service traditionally found in hotels. In this shifting landscape, hospitality principles and practices are emerging as key differentiators of competitive advantage. Increased economies of scale have resulted in the introduction of more standardized operations, data-driven product development and asset management, and scalable platforms.

Jordan Kavana, chairman of Ark Homes for Rent, a pioneer in the institutional SFR ownership and management space, said, “We have always felt that an authentic relationship with our customers is needed for long-term value to be realized. Through our health and wellness programs in the built environment and offered to our residents, we are bringing true hospitality to the SFR environment.”

Historically, single-family rentals were managed with a more basic, landlord-tenant mindset: provide a home, collect rent, and respond to maintenance issues. Today’s residents, however, demand significantly more.

While there are a growing number of transient SFR renters, most tenants are more permanent renters of their primary residence. They are families seeking stability, millennials priced out of ownership, and/or empty nesters and remote workers prioritizing space, flexibility and lifestyle.

All these groups are not merely renting a property — they are selecting a place to live, work, and play that should offer comfort, convenience, and care. This shift could represent a major opportunity for those that choose to deliver a hospitality-driven experience—focused on proactive communication, consistent high-quality product, high service standards, and personalized touches—and differentiate themselves in an increasingly crowded market. Now, forward-thinking SFR players are turning to the principles of hospitality to enhance resident experience, improve product, and secure long-term profitability.

Some of the strategic applications of a ‘hospitality mindset’ to develop durable competitive advantage include:

Resident retention, reduced turnover costs. One of the most tangible benefits of applying a hospitality lens is increased resident retention. In hospitality, guest satisfaction directly influences loyalty and repeat business. Similarly, in SFR, a satisfied resident is more likely to renew a lease, reducing turnover-related costs such as vacancy periods, maintenance, and leasing commissions. A hospitality focus will prioritize consistent engagement with residents, proactive maintenance scheduling, responsive communication, and even celebratory moments like move-in welcome packages or lease renewal gifts. These touchpoints build loyalty and goodwill, encouraging residents to pay more, stay longer and speak positively about their experience.

Not all residents desire or require the same level of service. Companies must take care to segment their customer base and tailor their hospitality approach accordingly: what works in a luxury suburban build-to-rent community may not translate to a workforce housing portfolio.

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Brand differentiation in a fragmented market. Unlike the hotel industry, the SFR space lacks widespread national brands with consumer-facing name recognition. This could present an opportunity to leverage the growing Build to Rent (BTR) trend among SFR players and hospitality tactics to create distinct, service-oriented brands that resonate with specific target demographics. By borrowing elements from the hospitality industry, such as consistent physical product types, curated design elements, branded mobile apps, smart home features, and concierge-like services, SFR companies can build emotional connections and command higher rents.

Operational efficiency through product design, technology. Modern hospitality is increasingly powered by smart product design and the strategic use of technology. The goal is to design products that are attractive to the customer, yet efficient to own and maintain, and to use technology to deliver a memorable guest experience. The same could apply to SFR, especially given that more products are being delivered as BTR.

Companies can leverage intelligent product design to generate significant savings in purchasing and in ongoing maintenance and asset management. Hospitality-oriented technology platforms can streamline the entire resident journey—from virtual tours and online lease signing to digital maintenance requests and automated rent collection.

Beyond this basic functionality, leading firms are using technology to enhance the feeling of being cared for. AI-driven chatbots can offer 24/7 support. CRM systems can track resident preferences and trigger personalized messages. Maintenance portals can provide real-time updates and satisfaction surveys.

Building reputation in the age of transparency. In the digital era, every resident is a potential reviewer, and every interaction can become public feedback. Platforms like Google, Yelp, Trip Advisor, and other social media have made reputation management a critical function in residential real estate. Hospitality-driven operators recognize that service excellence is marketing. An outstanding resident experience can lead to positive reviews, organic referrals, and stronger occupancy metrics. In contrast, poor service almost certainly leads to reputational damage that can be hard to reverse, especially at scale.

The experience of several SFR companies underscores this shift toward a more hospitality-oriented approach to product development and operations: 

• Invitation Homes, one of the largest institutional SFR owners, has emphasized “Resident First” service with initiatives like ProCare, which includes biannual property visits and enhanced maintenance responsiveness.
• ARK Homes for Rent, a growing rapidly growing company focused on building long-term value through exceptional resident care, has integrated hospitality into its operational DNA. The company emphasizes a personalized resident experience—from prompt, respectful maintenance interactions to thoughtful touches like move-in welcome gifts and community engagement initiatives. Ark’s high-touch approach is designed to foster trust and stability, leading to above-average retention and resident satisfaction scores.
• AMH (formerly American Homes 4 Rent) has invested heavily in new-build SFR communities designed with modern, hospitality-inspired amenities, such as parks, trails, and centralized resident services.
• Rentyl Resorts has blurred the lines between SFR and resort hospitality experiences, offering turnkey, fully furnished homes with hotel-like operations, amenities, and customer support. Growing from a base of resorts in Central Florida, the company has expanded across the United States and internationally, concentrating mostly on established resort travel destinations.

These companies are not just owning and managing properties, they are curating lifestyles for both transient and permanent residents. Their success highlights in part how the hospitality-oriented approach can scale effectively and create enduring competitive advantages.

The SFR industry is no longer merely about renting houses, it’s about delivering a living experience with the care, attention, and quality of service that people now expect in all areas of life. In this environment, a focus on hospitality is no longer optional - it’s strategic.

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Nick Falcone, CEO of Rentyl Resorts, notes, “SFR has emerged as a preferred choice for vacationers seeking larger accommodations. Our company has successfully integrated these accommodation types with the comprehensive services offered by full-service hotel properties. Consumers are increasingly seeking vacation enhancements beyond their single-family rentals and providing curated full-service hospitality experiences is key to the success for the growth in this sector.”

Of course, integrating hospitality into the SFR model is not without challenges. It requires investment in training, systems, and culture. Frontline employees must shift from purely operational roles to service-oriented ambassadors. Technology must be implemented thoughtfully to avoid depersonalization. And costs must be carefully managed to ensure margins are preserved.

Moreover, not all residents desire or require the same level of service. Companies must take care to segment their customer base and tailor their hospitality approach accordingly: what works in a luxury suburban build-to-rent community may not translate to a workforce housing portfolio.

Kavana concurs with the premise that curated customer-centric offering must be paired with measurable ROI. “Over the last five years, we have tested many different ‘customer-health’ first programs and delivering fresh fruits and vegetables to our residents weekly and offering mental health programs in the comfort of their home and community-wide walking paths, meditation gardens and the like,” he said. “These programs have allowed us to keep our residents almost 40% longer as compared to the competitive set.”

As the SFR industry continues to grow and mature, it is unlikely that asset quality alone will not guarantee success. Companies must differentiate not just from the homes they offer, but from the experiences they create. By adopting a hospitality-first mindset, companies can build deeper resident relationships and more efficient ownership and asset management processes, which not only generate long-term value but also sets themselves apart in a market that is increasingly competitive and consumer-driven.

In conclusion, the SFR industry is no longer merely about renting houses, it’s about delivering a living experience with the care, attention, and quality of service that people now expect in all areas of life. In this environment, a focus on hospitality is no longer optional - it’s strategic.

Contributed by Dr. Clay B. Dickinson, ISHC, CHE, CHIA, assistant teaching professor, special liaison to Real Estate Advisory Council, Chaplin School of Hospitality and Tourism Management, Hollo School of Real Estate, Chapman College of Business, Florida International University, Miami

The views and opinions expressed in this content do not necessarily reflect the opinions of Hotel Investment Today by Northstar or Northstar Travel Group and its affiliated companies.