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REAL ESTATE LAW

What is a deed of trust with assignment of rents.

By Rebecca K. McDowell, J.D.

February 24, 2020

Reviewed by Legal Expert

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• What Is a Corporate Assignment of Deed of Trust?

A deed of trust is a written instrument granting a lien on real property. While slightly different from a mortgage, they are functionally nearly the same. Some states use deeds of trust instead of mortgages while others allow both. Either way, a deed of trust used to secure a commercial loan may also include an assignment of rents , which gives the lender the right to collect rental income from the property in the event of default.

What Is a Deed of Trust?

A ​ deed of trust ​ is a document that a borrower may execute in favor of a lender to give the lender a lien on a parcel of real estate. Like a mortgage, a deed of trust secures the loan by allowing the lender to foreclose on the real estate if the loan isn't paid (although in some states that use deeds of trust, a foreclosure isn't necessary).

​ Read More: ​ How to Research a Deed of Trust

Deed of Trust vs. Mortgage

A deed of trust is very similar to a mortgage in that it pledges property to secure a loan. A mortgage, however, is simpler; the property owner executes a mortgage document in favor of the lender, and the lender records the mortgage and has a lien , but the property owner still holds title to the property.

A deed of trust, on the other hand, grants an actual ownership interest in the property to a trustee, who holds the property in trust for the lender until the obligation is paid.

What Is an Assignment of Rents?

An ​ assignment of rents ​ is extra security granted to a lender that provides a commercial loan. Commercial loans are loans that are not made for family or household use but for business purposes.

When a borrower grants a mortgage or deed of trust on real estate and the real estate has tenants who pay rent, the lender can demand an assignment of rents in addition to the mortgage or deed of trust.

The assignment of rents means that if the borrower defaults on the loan, the lender can step in and collect the rents directly from the tenants.

Deed of Trust With Assignment of Rents

A deed of trust may contain an assignment of rents clause for that same property. In addition to a clause in the deed of trust, the lender may also require the borrower to execute a separate document called an "Assignment of Rents" that is recorded with the register of deeds.

Whether the assignment is written in the deed of trust only or is also contained in a separate document, it is binding on the borrower as long as its language is clear and sufficient to create an assignment under state law.

Exercising an Assignment of Rents

When a lender decides to collect the rents on the borrower's property, the lender is said to be exercising the assignment of rents. The lender cannot exercise the assignment unless the borrower has defaulted on the loan. Once that happens, the lender can send a written demand to the tenant or tenants, requiring that the rents be paid directly to the lender.

Absolute Assignments of Rents

An assignment of rents most likely will contain language that the assignment is an ​ absolute assignment ​. In most states, an absolute assignment gives the lender an immediate interest in the rents. This means that the lender actually owns the rents and is simply allowing the borrower to collect them on license until an event of default. Once a default occurs, the lender can intercept the rents without taking any court action; a letter to the tenants is all that's needed.

Every state's laws are different; the law of the state where the property is located will dictate how a lender can exercise an assignment of rents.

​ Read More: ​ What Is the Difference Between a Deed and a Deed of Trust?

• Companies Incorporated: Mortgage States and Deed of Trust States
• American Bar Association: Commercial Real Estate FAQs
• Schulte Roth & Zabel: Sixth Circuit Upholds Assignment of Rents to Secured Lender
• Findlaw: California Civil Code - CIV § 2938
• Legal Beagle: What Is the Difference Between a Deed and a Deed of Trust?
• Legal Beagle: How to Research a Deed of Trust
• Legal Beagle: Documents Needed to Refinance a Mortgage
• Legal Beagle: How to File a Property Lien

Rebecca K. McDowell is a creditors' rights attorney with a special focus on bankruptcy and insolvency. She has a B.A. in English from Albion College and a J.D. from Wayne State University Law School. She has written legal articles for Nolo and the Bankruptcy Site.

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Assignment of Rents – What, Why, and How?

Article by:

Madelaine prescott, esq., share this post:.

• November 29, 2023

These days, almost all commercial loans include an Assignment of Rents as part of the Deed of Trust or Mortgage. But what is an Assignment of Rents, why is this such an important tool, and how are they enforced?

An Assignment of Rents (“AOR”) is used to grant the lender on a transaction a security interest in existing and future leases, rents, issues, or profits generated by the secured property, including cash proceeds, in the event a borrower defaults on their loan. The lender can use the AOR to step in and directly collect rental payments made by the tenant. For an AOR to be effective, the lender’s interest must be perfected, which has a few fairly simple requirements. The AOR must be in writing, executed by the borrower, and recorded with the county where the property is located. Including an AOR in the recorded Deed of Trust or Mortgage is the easiest and most common way to ensure the AOR meets these requirements should it ever need to be utilized.

When a borrower defaults, lenders can take advantage of AORs as an alternative to foreclosure to recoup their investment. With a shorter timeline and significantly lower costs, it is certainly an attractive option for lenders looking to get defaulted borrowers back on track with payments, without the potential of having to take back a property and attempting to either manage it or sell it in hopes of getting your money back out of the property. AORs can be a quick and easy way for the lender to get profits generated by the property with the goal of bringing the borrower out of default. But lenders should carefully monitor how much is owed versus how much has been collected. If the AOR generates enough funds so that the borrower is no longer in default, the lender must stop collecting rents generated by the property.

Enforcement of an AOR can also incentivize borrowers to work with the lender to formulate a plan, as many borrowers rely on rental income to cover expenses related to the property or their businesses. Borrowers are generally more willing to come to the table and negotiate a mutual, amicable resolution with the lender in order to protect their own investment. A word of warning to lenders though: since rental income is frequently used to pay expenses on the property, such as the property manager, maintenance, taxes, and other expenses, the lender needs to ensure they do not unintentionally hurt the value of the property by letting these important expenses fall behind. This may hurt the lender’s investment as well, as the property value could suffer, liens could be placed on the property, or the property may fall into disrepair if not properly maintained. It is also important for lenders to be aware of the statutes surrounding the payment of these expenses when an AOR is being used, as some state’s statutes require the lender to pay certain property expenses out of the collected rents if requested by the borrower.

In addition to being shorter and cheaper than foreclosure, AORs can be much easier to enforce. In California, the enforcement of an AOR is governed by California Civil Code §2938. This statute specifies enforcement methods lenders can use and restrictions on use of these funds by the lender, among other things. Under CA Civil Code §2938(c), there are 4 ways to enforce an AOR:

• The appointment of a receiver;
• Obtaining possession of the rents, issues, profits;
• Delivery to tenant of a written demand for turnover of rents, issues, and profits in the correct form; or
• Delivery to assignor of a written demand for the rents, issues, or profits.

One or more of these methods can be used to enforce an AOR. First, a receiver can be appointed by the court, and granted specific powers related to the AOR such as managing the property and collecting rents. They can have additional powers though; it just depends on what the court orders. This is not the simplest or easiest option as it requires court involvement, but this is used to enforce an AOR, especially when borrowers or tenants are uncooperative. Next is obtaining possession of the rents, issues, profits, which is exactly as it seems; lenders can simply obtain actual possession of these and apply the funds to the loan under their AOR.

The third and fourth options each require delivery of a written demand to certain parties, directing them to pay rent to the lender instead of to the landlord. Once the demand is made, the tenant pays their rent directly to the lender, who then applies the funds to the defaulted loan. These are both great pre-litigation options, with advantages over the first two enforcement methods since actual possession can be difficult to obtain and courts move slowly with high costs to litigate. The written demands require a specific form to follow called the “Demand To Pay Rent to Party Other Than Landlord”, as found at CA Civil Code §2938(k). There are other notice requirements to be followed here, so it is essential to consult with an experienced attorney if you are considering either of these options. California Civil Code §2938 specifically provides that none of the four enforcement methods violate California’s One Action Rule nor the Anti-Deficiency Rule, so lenders can confidently enforce their AORs using the above methods with peace of mind that they are not violating other California laws.

Whether you are looking to originate a new loan, or you are facing a default by your borrower, understanding what an Assignment of Rents is and how it operates can be extremely beneficial. Enforcing an AOR can be an easier option than foreclosure and can help promote a good relationship with your borrower when handled correctly. If you have any questions about AORs, or need further details on how to enforce them, Geraci is here to help.

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• Estate Planning & Probate

Assignment of Rents & Leases

Assignment of rents and leases in business and real estate transactions.

An “Assignment of Rents and Leases” is a crucial legal instrument that significantly impacts commercial and residential real estate, and mergers and acquisitions of real estate. Having a properly drafted and executed assignment means the rights and assets that are transferred give the new party (the assignee) the right to receive payments.

What is an assignment of rents and leases?

An assignment of rents and leases is a legal agreement in which the individual or company entitled to receive payments transfers that right to another party. Most often, this occurs (1) when a property owner hires a property manager, or (2) in acquisitions, such as a property management company selling their accounts to another property management company or a commercial landlord selling their portfolio to a buyer.

How is an assignment of rents and leases used?

This arrangement is often utilized in business sales, account sales, financing, and investment transactions as a means of securing debt or protecting the interests of the lender or property owner.

In the financing context, an assignment often grants the lender or assignee the authority to collect and apply the rents from the property should the borrower default on their loan; this is important when the borrower collateralizes real estate in order to receive the loan. In a property management context, an assignment often serves to effectively transfer management rights to the new company.

An assignment of rents and leases is probably most commonly used in a commercial real estate context when there is a sale of a commercial property, or in the residential real estate context when there is a change in property managers.

What terms should be included in an assignment of rents and leases?

Certain components should be included in a proper assignment. Here are a few of the foundational terms for an assignment of rents and leases:

• Parties. All parties should be clearly identified and defined. This can include the borrower, lender, assignee, assignor, successor, etc.
• Property description. The real estate parcel(s) involved in the assignment should be described by legal description, street address, and more.
• Lease terms, rents, and disclosures. The actual lease agreements that are being transferred to the new landlord, property manager, lender, etc. should be provided to the assignor/successor, along with an easy-to-read schedule of rents and other crucial details per parcel or premises.
• Rights and obligations. Each party should have their rules, permissions, and contractual rights and obligations outlined in the assignment language. The rights and obligations of each stakeholder will be widely varied based on the needs and financial position of each party, the existing leases being assigned, and the specifics of the subject properties.

Best Commercial Real Estate Attorneys in Oklahoma

It is crucial to engage an attorney with experience in properly negotiating, drafting, and executing assignments of rents and leases. They can guide you through the process, ensuring that the assignment is tailored to your specific needs and complies with all relevant legal requirements. The attorneys of Avenue Legal Group have the experience you need and want in your transaction. Contact our firm to discuss your transaction, assignment of rents and leases, or other real estate documentation.

Looking for local counsel in Oklahoma for your commercial real estate transaction? Our firm frequently works with attorneys, investors, and lenders from outside the state. Contact us by call, text, email, or website submission to discuss your matter.

Other helpful information:

• Commercial Real Estate Transactions in Oklahoma
• Due Diligence in Oklahoma Real Estate Transactions
• Essential Terms for Every Commercial Lease
• Attorney for Real Estate Contract Review
• Estate Planning
• Real Estate and Investing

Have Questions?

Assignment of Leases and Rents (Pro-Lender) (AZ)

This assignment of leases and rents template may be used in an Arizona commercial real estate financing transaction to assign to a lender, as additional security for the loan, the borrower's interests in the leases and rents in the mortgaged property. This template includes practical guidance and drafting notes. An assignment of leases and rents may be contained in the mortgage, but it is often broken out so it can be recorded to memorialize the assignment. In Arizona, both mortgages and deeds of trust are used. See Ariz. Rev. Stat. § 33-701 et seq. and Ariz. Rev. Stat. § 33-801 et seq. This template uses the term mortgage, but it may be modified to suit the specifics of the transaction. This template is drafted from the lender's perspective but includes drafting notes for the borrower. For more information on assignments of leases and rents, see Assignment of Leases and Rents in a Commercial Real Estate Loan Transaction and Assignment of Leases and Rents in a Construction Loan Transaction. See also Powell on Real Property § 37.26[4][b] and Purchase and Sale of Real Property § 36.04[1][b][iii][A]. For information on financing commercial real estate transactions in Arizona, see Commercial Real Estate Financing (AZ) and Commercial Real Estate Acquisition Loan Resource Kit.

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Under Arizona State law there are two Residential Landlord and Tenant Acts, one that pertains to standard rental housing and the other to renters in Mobile Home Parks.

The Residential Landlord and Tenant Act that pertains to standard rental housing was enacted to govern the rental of dwelling units and the rights and obligations of landlord and tenant. The document can be downloaded for free.  There is currently no state agency that enforces provisions in the Act, and because most landlord/tenant relations are private transactions, disputes that arise between landlord and tenants are generally considered private matters.  Links to the document in a .pdf format and a Word format are provided in the Document links here.

If you are seeking guidance concerning the Residential Landlord and Tenant Act you may wish to consult an attorney. Public members who are not represented by an attorney, may find it helpful to contact free community legal services:

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For additional information, visit the Community Legal Services website at www.clsaz.org . 

Southern Arizona Legal Aid, Inc.  will provide you contact information for other Community Legal Service offices outside of Maricopa County.

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The Manufactured Housing Division of the Arizona Department of Housing is responsible for maintaining and enforcing quality and safety standards for manufactured homes, mobile homes and factory built buildings, including administrative procedures to facilitate consumer protection. To download a copy of the Act or get information on how to file a petition, visit Arizona Mobile Home Landlord & Tenant Act Information and Relocation Fund .

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The Manufactured Housing Division of the Arizona Department of Housing is also responsible for administering the Mobile Home Relocation Fund (“Fund”), which provides monetary assistance to homeowners for the cost of relocating their mobile/manufactured home from its current park to a new location under certain situations. To find more information about the fund, visit  Arizona Mobile Home Landlord & Tenant Act Information and Relocation Fund .

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Assignment Of Leases And Rents: Definition & Sample

Jump to section, what is an assignment of leases and rents.

The assignment of leases and rents, also known as the assignment of leases rents and profits, is a legal document that gives a mortgage lender right to any future profits that may come from leases and rents when a property owner defaults on their loan. This document is usually attached to a mortgage loan agreement.

Assignment of leases and rents allows lenders to a degree of financial protection in case a loan default occurs. This document is an agreement made between a borrower and a lender of mortgage loans. It often details an exact amount the lender will be entitled to if a default happens.

Common Sections in Assignments Of Leases And Rents

Below is a list of common sections included in Assignments Of Leases And Rents. These sections are linked to the below sample agreement for you to explore.

Assignment Of Leases And Rents Sample

Reference : Security Exchange Commission - Edgar Database, EX-10.9 10 d368735dex109.htm ASSIGNMENT OF LEASES AND RENTS , Viewed October 4, 2021, View Source on SEC .

Who Helps With Assignments Of Leases And Rents?

Lawyers with backgrounds working on assignments of leases and rents work with clients to help. Do you need help with an assignment of leases and rents?

Post a project  in ContractsCounsel's marketplace to get free bids from lawyers to draft, review, or negotiate assignments of leases and rents. All lawyers are vetted by our team and peer reviewed by our customers for you to explore before hiring.

ContractsCounsel is not a law firm, and this post should not be considered and does not contain legal advice. To ensure the information and advice in this post are correct, sufficient, and appropriate for your situation, please consult a licensed attorney. Also, using or accessing ContractsCounsel's site does not create an attorney-client relationship between you and ContractsCounsel.

Meet some of our Assignment Of Leases And Rents Lawyers

Joshua is an experienced attorney with deep expertise in finance, corporate, and business law. He offers practical legal solutions and personal service. As Managing Partner of Soloway Group PC, he advises startups, growing companies and investment funds on key issues, from formation to fundraising, stock issuances, trademarks and general business. He started out structuring funds and transactions at PwC before launching his own firm in 2009. He has been a partner in several New York law firms and has founded several companies including a banking firm, a real estate business, and a Cleantech company. Joshua has also served as Chief Legal Officer and Chief Strategy Officer of several companies in the tech, real estate, consulting, and sustainability industries. Prior to law school he was an early employee at a SoftBank-backed startup until it’s acquisition. Over the years, Joshua has helped many clients to launch, finance and grow successfully.

Sarah brings together her accounting and legal background to help solve client problems. Sarah couples her broad, general commercial legal background with our client’s international and business problems to arrive at elegant solutions that work for their business.

Hi, I'm Sarina. Thank you for taking the time to read my bio! In 2019, I graduated summa cum laude from Capital University Law School. While in law school, I was a staff member and editor on the Capital University Law Review. I was also involved in the Volunteer Income Tax Assistance Program and Operation Legal Help Ohio, a program which provides legal assistance to veterans. One of the highlights of my law school experience was my externship with Judge Jeffrey Sutton in the United States Court of Appeals for the Sixth Circuit. After law school and passing the Ohio bar exam, I worked for two years as an associate at an AmLaw 100 law firm, where my practice focused on corporate, healthcare, and regulatory law. I then took an in-house position at one of the largest insurance brokerage firms in the USA, where I oversaw corporate governance, mergers and acquisitions, contracts negotiations, intellectual property, and other general corporate matters. Specifically, I am proficient in business law, navigating due diligence during acquisitions, contract drafting and review, and providing effective advice in the nuanced field of regulatory law. I prioritize responsiveness and thoroughness. Please do not hesitate to reach out to me with any questions!

Benjamin T.

I’m an Attorney working out of Marion, Ohio. Born and raised in Toledo, Ohio. I completed undergrad at the University of Toledo. I completed law school at Barry University in Orlando, Florida.

I am a new attorney who is licensed to practice in Connecticut and Massachusetts. I am waiting for bar admission to North Carolina. I have over 20 year of experience working in both the public and private sectors. I am a fierce advocate for my clients and am committed to delivering solutions for clients with excellence.

Christopher X.

Recent law school graduate with an undergraduate degree in biomedical engineering degree passionate about the intersectionality of law and life sciences. Admitted to New York and New Jersey Bar. Ability to add value in a pharmaceutical or biotechnology entity and provide a unique perspective to multiple disciplines.

Presently, I am a civil rights and insurance litigation attorney with a focus on representation government entities. Prior to this, I’ve represented some of the largest financial institutions in the world in litigation.

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Virtual Underwriter

© 2020 Stewart Title Company

Guideline: ALTA Endorsement 37-06 (Assignment of Rents or Leases) (12-3-12)

Organizational guidelines, explanation:.

This endorsement insures against: (a) any defect in the execution of an assignment of rents or leases document, or (b) any assignment of the lessor's interest in any lease or any assignment of rents affecting the Title and recorded in the Public Records at Date of Policy other than as set forth in any instrument referred to in Schedule B.

Underwriting Requirements:

1. Confirm that the assignment of rents and/or leases document is duly authorized and executed and acknowledged by the assignor (the mortgagor). 

2. Confirm that the assignor (the mortgagor) is a validly existing entity in good standing. 

3. Insert the title of the assignment of rents and/or leases document in section 2.a of the endorsement. 

4. The assignment of rents and/or leases document must be recorded. The commitment and policy should show the assignment of rents and/or leases document in Schedule B.  

5. This endorsement contains a bracketed option – Part II – of Schedule B, which is used for subordinate matters, where applicable. 

6. If the assignment of rents and/or leases provision is contained solely in the Insured Mortgage, modify Section 2.a of the endorsement to refer to the Insured Mortgage shown on Schedule A. 

7. Review all recorded documents for assignments of rents and/or leases. Schedule B should show as exceptions all documents that contain assignments of rents and/or leases, including mortgages or deeds of trust containing assignment of rents and/or leases provisions. It is not necessary to specifically identify the assignment of rents and/or leases aspect in the exception, nor is it necessary to create an additional, separate exception specifying the assignment of rents and/or leases aspect.

Any revision to this form requires approval of a Stewart Title Guaranty Company underwriter. The underwriting guidelines contained herein have been provided for general reference. The facts, circumstances, and location of the subject property should be considered when determining the issuance of the requested form or endorsement. Please note that all of the forms and endorsements included in this system may not be available in all states. Accordingly, please contact the appropriate Stewart Title Guaranty Company underwriting personnel in order to determine availability. Compliance with the underwriting guidelines contained herein in no way obligates Stewart Title Guaranty Company to issue any form or endorsement.

• ALTA Endorsement 37-06 (Assignment of Rents or Leases) (12-3-12)
• NJRB 5-155 ALTA Endorsement 37-06 (Assignment of Rents or Leases)
• OTIRO Endorsement No. 237-06 Assignment of Rents or Leases

Arizona AG says many of state’s largest landlords inflated rent prices

Ag accuses nine rental companies of breaking the law.

PHOENIX (AZFamily) — Arizona Attorney General Kris Mayes says nine of Arizona’s largest rental companies “cheated” renters. The result, according to a lawsuit filed by Mayes earlier this year, is that renters paid higher prices than the rental market would have otherwise charged .

“This is flat-out cheating,” said Mayes in an interview with Arizona’s Family Investigates.

Mayes’ lawsuit alleges that the landlords used a software company called RealPage to set the rent prices.

The lawsuit states that “approximately 70% of multifamily apartment units listed in the Phoenix metropolitan area are owned, operated, or managed by companies that have contracted with RealPage for ‘Revenue Management.’”

“It spits out a price, and all of those landlords are asked to stick to that price. No one is allowed to go beneath it, because that of course would ruin their scheme,” said Mayes. “It’s the modern day equivalent of a smoke-filled back room deal between landlords, where they’re agreeing to charge high prices. And we passed anti-trust laws in this state and this country for precisely this reason.”

According to U.S. Census data reviewed by Arizona’s Family Investigates, in 2018, the majority of renters in Maricopa County paid between $500 and $1,500 per month. In 2023, the majority paid between $1,500 and $2,500 per month.

That increase coincides with an increase in the number of large investors buying rental properties in Maricopa County. They are purchasing both single-family homes and multi-family apartment complexes.

According to the organization Private Equity Stakeholder Project (PESP), the percentage of homes purchased by investors between 2018 and 2022 increased by 78%.

“We’ve seen it very clearly, where a private equity firm buys a building and then immediately increases the rent,” said Jordan Ash, who is the housing director for PESP . Ash studies the effects investors have on the housing market.

“They see an opportunity to raise rents or to add on fees or to spend less on maintenance and repairs,” Ash said. “One company’s rents affect another’s,” he said.

Renters who spoke to Arizona’s Family Investigates say the higher prices don’t always mean better service or living conditions.

“I was without a shower in my apartment, and it was completely taped off for approximately seven weeks,” said Justin Clark, who is now suing his former landlord.

“How do you not have the staff to make sure that I have A/C?” asked Kacie Gettinger, who says the air conditioner in her apartment did not work.

She has since moved out and is now living in a home owned by a local landlord.

Clark paid $2,200 per month for a one-bedroom apartment, while Gettinger paid $3,100 per month.

Both apartments are owned by one of the companies that is being sued by Kris Mayes.

RealPage’s media team did not respond to repeated requests for comment, but in court documents, its attorneys said Mayes’ lawsuit “advances and implausible theory” and contains “demonstrably false allegations.”

If you believe your rent may have been affected by a landlord using RealPage, you can file a complaint with the Arizona Attorney General here.

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Watch CBS News

Built-to-rent communities a growing U.S. trend amid sky-high housing costs

By Kris Van Cleave

September 19, 2024 / 8:28 PM EDT / CBS News

As housing costs skyrocket and the demand for affordable homes surges, builders across the U.S. are constructing entire blocks of single-family homes specifically designed for renters. These so-called built-to-rent communities can offer another option for those who want a home but cannot afford to buy one.

Texas resident Richard Belote says his rented home 90 minutes from Houston is a "good stepping stone, because interest rates are "just too high to manage." Despite saving diligently to buy a home, he and his fiancee feel priced out of their house hunt.

"Just really kind of crossing our fingers that those rates go down," he said.

Belote is far from alone.

A July CNN poll found 86% of renters say they can't afford to buy a home and 54% say they believe it's unlikely they'll ever be able to. However, another poll found 81% of renters want to own a residence in the future.

" House prices  have gone up by more than 40% in just four years," said CBS News business analyst Jill Schlesinger. "There are a lot of people out there who really, really want to be in homes, and they just can't afford to get there," Schlesinger said.

Built-to-rent communities began in Phoenix during the Great Recession to meet that demand. They are higher density and smaller cottage-sized homes — a literal cottage industry now spreading in cities across the Sunbelt, including Phoenix, Atlanta and Dallas.

Brent Long leads the build-to-rent expansion for Christopher Todd Communities in Arizona. He says the renters range in age from Gen Z to Baby Boomers.

"It's really renters by choice and renters by need," Long said.

When asked if the concept goes against a more traditional view of buying a home to achieve the American Dream, Long said, "I don't think it takes it away. It solves some issues that are out there in terms of affordability, availability."

Cassie Wilson rents by choice in Phoenix, Arizona. She says the "perfect" arrangement allows her to enjoy many amenities without the homeownership responsibilities.

"I can live here in a house that is fully up kept by someone else. I would like to buy a house out here. But on the flip side, I still want to travel," Wilson said.

Though a growing industry, these built-to-rent communities made up only 7.9% of new residential constructions last year, according to Arbor Realty Trust. 

Arizona housing advocates warn that the properties are not enough to push prices down, but welcome anything that helps to address the housing shortage.

Back in Texas, Belote said he wakes up every morning and enjoys his backyard with the dogs and his cup of coffee. It's a home-sweet-home as he waits for a break in the housing market. 

• Housing Crisis

Emmy Award-winning journalist Kris Van Cleave is the senior transportation correspondent for CBS News based in Phoenix, Arizona, where he also serves as a national correspondent reporting for all CBS News broadcasts and platforms.

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