Causing a stir in the real estate market, build-to-rent properties are the future of affordable and well-managed housing. As the name suggests, build-to-rent homes are constructed for the sole purpose of renting. They feature all the essential amenities that make the renting process easier for landlords, and the overall process comfortable for tenants. In this article, we will be discussing the benefits of build-to-rent for landlords. 

1. Reduced Vacancy Rates

Compared to traditional rental properties, build-to-rent projects have a higher occupancy rate. Because of the exceptional property maintenance and services provided to the tenants by the landlords, the build-to-rent occupancy rate is as high as 95.8% and the vacancy rate is as low as 4.2%. In addition, BTR properties come with a 74% lease renewal rate, which helps create profitable returns for the landlords. 

2. Long-Term Tenants

What makes build-to-rent properties stand out is that they are developed to cater to the needs of long-term tenants, which ultimately leads to lower turnover rates and fewer vacancies. This is a plus point for both landlords and renters, as people who wish to sign longer tenancies now have a good real estate niche in the market. Owning BTR homes also eliminates the risk of eviction, as the tenants have signed a contract guaranteeing their extended stay. 

Build-to-rent developments don’t follow the same conventional model for real estate valuation. Instead, they are valued by the facilities and the merits that help in achieving long-term income. The upscale architecture of build-to-rent homes helps landlords gain consistent cash flow without any depreciation, ensuring maximum value for their property. 

3. Better Tenants 

Build-to-rent property management companies have a rigorous screening process that helps landlords in finding reliable tenants who guarantee timely rent payments and can reside without any trouble. The team of experts takes all measures to find good tenants and sign a profitable rental agreement. Taking all the stress off the landlord’s mind, seamless property management ensures having tenants who will take care of your property like their own. 

4. Professional Management

Unlike private rental properties, most of the build-to-rent developments are managed by professional property management companies. The on-site management team isn’t only responsible for taking care of day-to-day operations, such as rent collection and maintenance but also tenant screening and freeing up landlords giving them enough space and time to focus on other aspects of their business. Simply put, as a landlord of BTR properties, you no longer need to worry about getting calls from tenants complaining about missing parcels or no broken sanitation system, or malfunctioning Wi-Fi.  

Furthermore, build-to-rent homes provide premium facilities such as on-site health and fitness facilities, high-quality furnishing, a garden terrace, secured bike storage, delivery collection, a library, a game room, and shared spaces or common rooms where residents can gather, talk, and relax. 

5. Builder’s Warranty 

Newly constructed build-to-rent properties are backed by builder’s warranty coverage. This covers the deterioration cost of the first three to five years. Therefore, the landlords will be saving greatly on property damage. 

Start Investing in Build-to-Rent (BTR) Today!

One of the best things about owning a build-to-rent property is that it doesn’t only benefit you but your tenants as well. From reduced vacancy rates to professional management and a plethora of amenities, build-to-rent developments provide landlords with a stable source of passive income. However, as the landlord, it is your responsibility to ensure that your tenants have all the facilities they need. 

So, if you are looking for a hassle-free real estate investment, build-to-rent is the way to go. Contact us and start purchasing or investing in build-to-rent homes right away!