How Accurate Is Rent to Retirement? We Checked Every Sale Since 2017 to Find Out

Turnkey real estate investing is often marketed around projected returns, so how does Rent to Retirement performance compare to what is advertised? The third-party home sales data and investor-reported rent data presented in this article paint a clear picture of Rent to Retirement turnkey rental property performance and how investors fare on resale.

Summary:

• Third-party data shows most Rent to Retirement investors hold their rental properties long-term.

• The majority of investors who do sell their Rent to Retirement properties still realize a gain on resale.

• The actual median rent self-reported by investors matched 100% to Rent to Retirement’s pro forma rent estimate.

94.6% of Rent to Retirement Buyers Have Never Resold

The data shows that nearly 95% of investors who have bought Rent to Retirement turnkey properties since 2017 are still holding on to them. This suggests that investors are purchasing quality assets with quality management and tenants in place, and that these properties are performing the way investors expected when they bought them. So why are most Rent to Retirement investors holding their properties? There are multiple reasons for this:

Fewer Repairs and Maintenance

All of Rent to Retirement’s properties are either newly built or recently renovated. With newer systems and appliances, these turnkey properties tend to require less maintenance and fewer repairs than older, outdated rental properties—particularly early in the ownership cycle.

Hassle-Free Property Management

One of Rent to Retirement’s primary objectives is to help busy investors create semi-passive income through direct property ownership. Because we carefully vet and handpick each of our property management partners, investors can leave much of the day-to-day to a professional who knows the market and tenants.

Strong Cash Flow and Appreciation Markets

Rent to Retirement operates in some of the best places to own rental properties, namely high-cash-flow and high-appreciation markets throughout the Midwest and much of the Sunbelt region. The data shows that these properties are performing the way they were underwritten to.

Looking to build long-term wealth with cash-flowing properties that will last?

Investors Who Sold Realized a 1.42x Median Resale Value

Of the 5% of investors who have sold their Rent to Retirement properties, the median resale multiple was 1.42x. 75% of those who sold were able to sell above cost, which means most investors realized a gain purely on the sale price—not even counting cash flow, tax deductions, and other benefits of direct ownership. The sold properties were largely 7-9 year holds, showing that these weren’t short-term “buy and sell when the market improves” investments. Despite the strong resale numbers, most investors continue to hold their Rent to Retirement properties.

Rent to Retirement’s Rent Estimates Matched 100% Median Rent for Investors

Rent to Retirement investors self-reported actual rent data, and the median rent price 100% matched to our rent projections. More specifically, 81% of customers report rents that fall within 95% of Rent to Retirement’s pro forma estimate. This shows that investors are truly getting the numbers Rent to Retirement advertises. How do we achieve this?

Strong Relationships with Local Property Managers

Rent to Retirement thoroughly vets the property managers in the markets where we operate. As investors ourselves, we personally select property management partners with strong track records and local market expertise to ensure our investors enjoy quality service and a hassle-free experience.

New Build/Renovated Quality Commands Higher, More Accurate Rents

New build investments and renovated properties often have newer systems, appliances, and features. This not only makes these properties more desirable for tenants but also allows investors to command higher, more accurate rents within their respective markets.

Rent to Retirement’s Own Underwriting Integrity

Rent to Retirement uses multiple data sources to get a complete picture of rents in the area, rather than relying on a single source or comp. This allows us to provide rent estimates to our investors that are as accurate as possible.

Browse turnkey rental properties with cash flow, ROI, rent estimates, and more!

Where Did This Data Come From?

Turnkey providers often use their own underwriting to present performance in a positive light. The home sales data presented here comes from an independent, third-party source, and the rent data comes directly from a large pool of actual investors. This provides a more objective view of investors’ experiences with Rent to Retirement, property performance, and eventual resale value.

Home Sales: ATTOM Data

The property sale information is from ATTOM Data, an independent, third-party real estate data platform. The report includes 2,763 Rent to Retirement properties purchased by investors since 2017 that ATTOM was able to track in public records.

Actual Rent Data

Rent to Retirement surveyed its investors, who self-reported actual rents across 747 turnkey properties. The projected rents correspond closely with what these properties are commanding today.

The Data Confirms It: Rent to Retirement Investors Get What They Expected

Before choosing a turnkey provider, it’s crucial to do your due diligence on both the provider and the property itself, just as you would with any other investment. Some turnkey companies present overly optimistic projections that may look appealing on paper but don’t match what investors ultimately experience.

In Rent to Retirement's case, the data supports a strong alignment between what was projected and what investors are actually experiencing. The vast majority of Rent to Retirement investors hold their turnkey rentals for the long haul, while the actual rents reported closely track with the original pro forma. No investment is without risk, but these findings can give investors greater confidence in the quality of product and service they’re adding to their portfolios.