What the SFR Surge Means for Property Managers in 2025

1. BTR Communities Are Reshaping Expectations

The rise of build-to-rent is more than just a supply-side shift — it’s a tenant experience shift.

Tenants used to renting from individual owners are now stepping into communities designed from day one to be professionally managed. These properties come with centralized maintenance systems, digital leasing tools, standardized finishes, and responsive customer service.

That raises the bar for everyone.

Even if you manage scattered-site rentals, the benchmark has moved. Renters expect faster maintenance response times, mobile payment options, and consistent communication. If they don’t get it, they’ll compare your unit to a BTR offering — and you’ll lose them at renewal time.

What you can do:

• Implement mobile-friendly portals for payments, maintenance, and messaging
• Standardize finishes and appliances wherever possible to streamline repairs
• Focus on responsiveness — not just for service, but also for communication

2. Retention Is Now a Revenue Strategy

Arbor’s report points out that operators are putting more energy into tenant retention — and with good reason. When interest rates are high and housing inventory remains tight, finding new homes is harder for tenants. That means you have more leverage to keep good residents, and more to lose if you let them walk.

But retention doesn’t just mean avoiding complaints. It means building relationships and offering just enough flexibility or perks to make tenants feel valued.

Tactics we’re seeing property managers use:

• Offering early renewal discounts or free minor upgrades
• Conducting mid-lease check-ins to resolve issues early
• Providing small gestures at key moments — move-in kits, thank-you gifts, or holiday touches

Retention isn’t a cost center. It’s a revenue multiplier.

3. Operational Consistency Is the New Differentiator

Institutional investors now own tens of thousands of SFR units across the U.S., and they’re not managing them the old-fashioned way. They’re implementing repeatable systems, using tech to track performance across portfolios, and prioritizing process over preference.

Even smaller operators can take a page from that playbook.

It’s not about becoming robotic. It’s about creating consistency. Your contractors should know what to expect. Your residents should know how to reach you. Your leasing process should run the same every time.

This creates trust. And trust drives renewals and referrals.

Where to start:

• Define SLAs (service level agreements) for maintenance responses
• Automate follow-ups after service calls or lease signings
• Create a standard onboarding process for new tenants

4. Tech-Enabled Doesn’t Mean Overcomplicated

Let’s be clear: no one is asking you to become a Silicon Valley startup. But the gap between what tenants expect and what many SFR properties offer is growing.

According to the Arbor report, the SFR sector is maturing. That means mature systems are no longer optional.

Tenants are used to Venmo, Amazon, and DoorDash. They don’t understand why they can’t pay rent with a few taps or why they need to call someone to fix a leaky faucet. Technology doesn’t have to be fancy — it just needs to reduce friction.

Quick wins:

• Enable mobile rent payments
• Use automated email and SMS reminders
• Offer self-scheduling for tours and maintenance windows

If you’re still relying on spreadsheets or handwritten notes, this is your call to level up.

5. The Sunbelt Is Still Hot — But the Playbook Travels

Arbor’s data shows that Sunbelt metros continue to dominate in BTR starts and investor activity. That’s no surprise — these areas offer population growth, relative affordability, and landlord-friendly regulations.

But even in colder markets, the playbook still applies.

Professionalized SFR management, tech-enabled operations, and resident retention strategies are now baseline expectations across the board. Investors and residents alike are applying Sunbelt standards everywhere.

Whether you’re managing in Ohio or Oregon, the same rules apply:

• Treat your units like long-term assets
• Treat your residents like long-term customers
• Run your operation like a business, not a hobby

6. Why This Matters for AAOA Property Managers

You’re not just managing homes. You’re managing assets that now sit in one of the most resilient sectors in U.S. real estate.

That puts you in a powerful position.

Whether your clients are mom-and-pop owners or institutional funds, your ability to operate efficiently and deliver a modern resident experience is now a differentiator. It can determine cap rates, drive NOI, and even impact long-term portfolio value.

The Arbor report confirms what many already suspected: SFR is here to stay — and it’s getting more competitive. Property managers who evolve with it will thrive.

Final Thought: This Isn’t Just a Trend. It’s a Transformation.

Too many in our industry still treat SFRs like they’re the younger sibling of multifamily. But the data — and the dollars — say otherwise.

SFR isn’t a footnote. It’s a full chapter. And in 2025, that chapter is being written by property managers who know how to deliver scale, service, and consistency.

At InstaShow, we’ve seen firsthand how even small operators can level up — from scheduling showings smarter to offering better visitor security. The future of SFR isn’t just in the size of the portfolio. It’s in the quality of the experience.

Make sure yours is built for what comes next.

Sources:

Arbor Realty Trust & Chandan Economics. Single-Family Rental Investment Trends Report Q2 2025.