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What to Know About Build-to-Rent Homes

September 29, 2023

Build-to-rent (BTR) homes are a new type of housing that is changing the real estate landscape. BTR homes are built specifically to be rented out, as opposed to being built for sale. This offers a number of advantages to both tenants and landlords.

In this article, let’s take a look at what build-to-rent homes are, how they are managed and the factors contributing towards their popularity.

What are Build-to-Rent Homes?

Purpose-built residential buildings created specifically for the rental market are known as “build-to-rent” residences.

BTR facilities are built from the ground up with the sole goal of providing high-quality, long-term rental accommodation, in contrast to standard rental properties, which frequently consist of converted single-family homes or reused apartment buildings.

Types of Build-to-Rent Homes

Build-to-rent (BTR) homes encompass various housing types, but three of the most popular categories include apartment buildings, single-family homes, and townhouses.

Multi-story rental homes are found in apartment complexes, which frequently also have amenities like fitness centers.

Renters in BTR projects have the opportunity to live independently without the responsibilities of house ownership in single-family homes. With shared green spaces and public services, townhouses, which are common in bigger BTR communities, create a compromise between apartment and single-family living.

These three BTR solutions are popular options in the shifting real estate market since they cater to a wide range of tenant preferences and wants.

Who Manages Them?

Build-to-rent properties are typically managed by professional property management companies or real estate investment firms. This way, tenants are guaranteed to receive effective and timely property management services, improving their overall rental experience.

Why Are They Becoming Popular?

new & well-maintained homes

The guarantee of brand-new, beautifully kept living quarters is one of the key factors contributing to the appeal of BTR homes. These homes frequently have state-of-the-art facilities, cutting-edge technology, and energy-saving features, which makes them very appealing to renters looking for a convenient lifestyle.

desirable locations

Plenty of BTR communities are thoughtfully positioned in sought-after areas. This implies that locals have quick access to top-notch educational institutions, leisure facilities, retail establishments, public transportation hubs, and employment centers. This location-centric strategy improves renters’ overall quality of life.

desirable locations

Less Hassle Than Traditional Renting

BTR tenants often have less trouble with maintenance issues. Property management firms take care of all facets of property maintenance, from simple fixes to landscaping, so that tenants may relax in their homes without worrying about taking care of maintenance themselves.

Good Investment Opportunity

BTR homes are also great for investors. On top of providing long-term, reliable rental income, build-to-rent properties also have the potential for capital appreciation as property prices increase over time. Professional property management eases the stress of ongoing operations for investors as well.

Cons of BTR Homes

Potentially Higher Costs

BTR properties may come with a higher monthly rent compared to traditional rentals due to the quality of the housing and amenities provided.

Less Flexibility

While renters enjoy a well-maintained home, they may have less control over the property and limited ability to make modifications.

Risk of Vacancy

While BTR properties can offer consistent income, vacancies can impact profitability, making effective property management and marketing essential.

As the demand for flexible, hassle-free housing options continues to grow, build-to-rent homes are likely going to continue playing an increasingly prominent role in the real estate market.