Company: BHM
Filing Date: 2025-04-07
Form Type: POS AM
Source: 0001104659-25-032524
Chunk: 173

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-04-07
Form: POS AM
Chunk 173
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 in the costs associated
with the preparation of newly acquired homes for rental. The cost associated with the preparation of newly acquired homes, in the company’s
experience, has historically ranged from $0 to $20,000 per unit, with an average cost of $500 to $1,000 per unit, although such costs
are subject to a variety of factors out of the company’s control and which are subject to change, including the cost of labor and
cost of materials. In addition, we believe our rigorous underwriting process for the evaluation of potential investments will enable us
to utilize our value-add renovation strategy to cost-effectively maximize the income-producing capacity and potential for capital appreciation
of our investments.

Property Management and Leasing

The day-to-day aspects of
property management and leasing are generally conducted by our joint-venture partners or third-party managers with extensive local experience,
with oversight to be performed by our Manager’s asset management team. We believe this approach maximizes efficiencies and allows
us to leverage local expertise. With respect to potential tenants, our property managers perform a thorough underwriting process tailored
to the specific property, in accordance with local market practice and local, state and federal regulations. The typical application and
evaluation process includes obtaining appropriate identification, a thorough evaluation of credit history and household income, and a
review of the applicant’s rental and other payment history, and may include a background check for criminal activity for all proposed
occupants over the age of 18. We also generally require a minimum income-to-rent ratio, and seek tenants with household income that exceeds
the median household income of the market in which the property is located. Many additional factors are also taken into consideration
during the prospective tenant evaluation process, which may include household size and tenure at current job.

Our Environmental, Social and Governance Policies

Environmental: Improvements with the Environment in Mind. In keeping with our Environmental Sustainability Policy, we undertake a variety
of environmental sustainability initiatives, including the installation of energy- and water-conserving fixtures at many of our upgraded
properties. Our value-add investment model generates a continually-replenishing opportunity for us to improve the environmental impact
of older, less sustainable properties throughout the U.S., while our ground-up, build-to-rent developments incorporate environmentally
sound principles from inception. Our due diligence process incorporates evaluation of environmental impacts, which are factored into our
projections for acquisition or investment, affording us the functional and financial flexibility to develop or retrofit homes to operate
more responsibly in a changing