Real Estate Journal Online

Luxury rental properties represent the next wave in real estate investing, one Tucson based builder believes. And he’s backing up that hypothesis with action, filling the perceived niche in the Tucson area with a new line of luxury rental homes that will have many features of single family residences like two car garages, high ceilings and private backyards. Some will even have four bedrooms[1]. “We’re trying to take care of a demand that appears to be coming to the marketplace,” explained builder and co-CEO of Miramonte Homes, Steve Quinlan, pointing out that the increasing number of people strategically defaulting need somewhere to live and may not have the credit to buy another house. Quinlan is specifically targeting strategic defaulters, believing, like Justin Lanne of Grubb & Ellis, that “those people [are] disenchanted with homeownership but want to have a home environment.”

Miramonte will handle day-to-day operations at the rental units and will require a credit check, although Quinlan says that a foreclosure, in this case, will not be a deal-breaker as long as the applicant is not behind on other payments. By starting out small with about 100 units in several different geographic areas, Miramonte hopes to avoid flooding the market with the new luxury rentals.

Do you think that Quinlan is right and that the next sector of real estate development lies in luxury rentals?

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