PROFITABILITY
Cost Control
Fully developed cost of an ERC MHR community is approximately 60% to 70% of the cost of a conventionally built single family home community
Direct material and labor costs lower as they are factory-built
Land allotment is approximately 1/3 less than what is needed in conventionally built homes
Speed to Revenue
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Horizontal” nature of land development and construction (underground, paving, and landscaping only), makes sites available sooner
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Homes can be moved into the community faster, and in groups
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Homes are made available for rent sooner
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ERC anticipates that most homes will have lease contracts in-place prior to being transported to the community
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Once homes are set up, rent collection can immediately commence
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ERC projects 100% occupancy of its developments that are 100 units or smaller within 12 months
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Zoning & Entitlements
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ERC’s MHR communities will be developed outside of core urban areas where higher and better uses of land are more likely, resulting in lower land costs and faster entitlement processes
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According to surveys, monthly rent savings of $1,000 is worth as much as 15 to 20 minutes of additional commute to renters
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ERC will seek entitlement of land that is “a bit further out” and not in competition for higher zoning uses
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The ERC development team will ensure that proper zoning and entitlements can be achieved before acquiring land for new development
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Affordability
The KEY to the ERC MHR platform strategy is to address the strongest and broadest market demand
Focus on extensive need for separate family living in 3-bedroom / 2-bathroom homes approximating 1,400 square feet
Homes that are affordable for entry-level families
Of particular concern in the in-migration states of the Southeast, where single-family home prices and rental levels are increasing materially
Approximate $1,000 / month savings afforded in ERC’s MHR communities allow for a broader, deeper market of potential renters