Company: BHM
Filing Date: 2025-03-28
Form Type: POS AM
Source: 0001104659-25-029225
Chunk: 40

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-03-28
Form: POS AM
Chunk 40
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 of our residents fail to meet their lease obligations or fail to renew their leases. For
example, residents may default on rent payments, make unreasonable and repeated demands for service or improvements, make unsupported
or unjustified complaints to regulatory or political authorities, use our properties for illegal purposes, damage or make unauthorized
structural changes to our properties that are not covered by security deposits, refuse to leave the property upon termination of the lease,
engage in domestic violence or similar disturbances, disturb nearby residents with noise, trash, odors, or eyesores, fail to comply with
HOA regulations, sublet to less desirable individuals in violation of our lease, or permit unauthorized persons to live with them. Additionally,
any future outbreaks of infectious disease, which may include COVID-19 or a future pandemic, as well as measures taken by governmental
authorities and private actors to limit the spread or mitigate the impact thereof, may interfere with the ability of some of our residents
to meet their lease obligations and make their rent payments on time or at all. In such event, jurisdictions and other local and national
authorities may impose restrictions on our ability to enforce residents’ contractual rental obligations and/or to increase rents.
See “—Our business, results of operations, financial condition, and cash flows may be adversely affected by pandemics and
outbreaks of infectious disease, which may include COVID-19.”

Damage to our properties may
delay re-leasing after eviction, necessitate expensive repairs, or impair the rental income or value of the property resulting in a lower
than expected rate of return. Increases in unemployment levels and other adverse changes in economic conditions in our markets could result
in substantial resident defaults. In the event of a resident default or bankruptcy, we may experience delays in enforcing our rights as
landlord at that property and will incur costs in protecting our investment and re-leasing the property.

Our leases are relatively short-term, exposing us to the risk that we may have to re-lease our properties frequently, which we may be unable to do on attractive terms, on a timely basis, or at all.

Substantially all of our new
leases have a duration of one to two years. As such leases permit the residents to leave at the end of the lease term, we anticipate our
rental revenues may be affected by declines in market rental rates more quickly than if our leases were for longer terms. Short-term leases
may result in high turnover, which involves costs such as restoring the properties, marketing costs, and lower occupancy levels