ROC USA® President Paul Bradley has posted a blog today in which he reports the results of a rent study in the first resident-owned communities (ROCs) financed by ROC USA Capital®.
These seven communities raised their rents an average of $14 at the time of purchase, but five years into resident ownership boasted rents that were either equal to market rates for comparable communities or below by as much as 17 percent. None was above market rate.
“And we know these rent savings didn’t come at the expense of proper community upkeep,” Bradley said. “Just the opposite, in fact. These ROCs are conservative in their budgeting and save diligently for future projects like infrastructure repair and new amenities.”
The seven communities studied have made more than $2 million in community improvements in their first five years of ownership.
The independent research was conducted by Colliers International, which contrasted the ROCs with comparable nearby commercially owned communities.
“We’re excited, though not surprised, to see that the ROC model is really working for these first communities,” Bradley said. “They averaged an annual rent increase of only $4 a month while making significant improvements to their neighborhoods.
“With ongoing coaching from their certified technical assistance providers, we can’t wait to see what the numbers look like in another five years.”
Read Bradley’s blog at www.myROCUSA.org.