Company: BHM
Filing Date: 2025-10-08
Form Type: S-11
Source: 0001104659-25-097905
Chunk: 43

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-10-08
Form: S-11
Chunk 43
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 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.
Our resident turnover rate and related cost estimates may be less accurate than if we had more operating data upon which to base such
estimates. If the rental rates for our properties decrease or our residents do not renew their leases, our operating results and ability
to make distributions to our stockholders could be adversely affected. Alternatively, to the extent that a lease term exceeds one year,
we may lose the opportunity to raise