Build-to-Rent | Everything You Need to Know

From families and retirees to young professionals, renting has become a more popular residential option compared to buying, especially when it comes to single-family homes. In order to meet the soaring demand for independent and quality rental housing, developers are constructing build-to-rent communities. Comprising a costly price tag for investors, build-to-rent properties offer many perks, including purpose-built communal areas, on-site managers, and long-term tenancies.?

So whether you are interested in renting a build-to-rent property or investing in one, here is everything you need to know about build-to-rent real estate properties.

What Is Build-to-Rent?

As stated on the tin, build-to-rent homes are designed for the sole purpose of being rented. Unlike multi-family structures and apartments, build-to-rent properties are specifically intended to attract individuals who are searching for a long-term rental residence. Build-to-rent homes are usually managed by a single entity and are an excellent source of passive income.?

Requiring special expertise to be constructed, most build-to-rent homes are located in professionally managed communities that offer residents many benefits, including high-end amenities and services, a beautiful neighborhood, and home maintenance.?

Types of Build-to-Rent Homes

Covering a wide range of price points, sizes, and styles, build-to-rent properties are available in different forms. The extensive build-to-rent real estate market allows a diverse range of tenants to find the most suitable property according to their individual needs. These include:

1. Small Lot Homes: Build-to-rent small lot residences can be defined as single-family homes that are constructed on smaller lands for the sole purpose of being rented to small families. For instance, if a standard home is built on 5000 square feet of land, small lot homes span from 500 to 700 square feet.?
2. Row Homes: Constructed side-by-side, these build-to-rent homes are commonly found in a city’s downtown/urban areas. Hence the name “Row Homes.” These types of homes usually share a common wall.?
3. Duplexes: When two residential units make one build-to-rent real estate property, then it’s called a duplex. These types of homes can be rented to more than one family or tenant.?
4. Single-Family Homes: If you have ever visited a build-to-rent community, you will notice that they are virtually identical to a traditional suburban neighborhood. Single-family homes are residential units, each set up on its own land.?

Why Should You Invest in Build-to-Rent?

Some benefits of investing in build-to-rent real estate are as follows:

High Quality of Life

Build-to-rent homes, especially those constructed in the form of communities, are developed to provide you with the best lifestyle. They feature quality construction, high-end designs, and all necessary amenities, giving you the freedom to focus on making every day count.?

No Worrying about Unexpected Repairs and Home Maintenance?

When you rent out your build-to-rent property to a tenant, everything that goes wrong is theirs to deal with (painting, A/C maintenance, and yard upkeep), saving you a significant amount of money in the long run. Moreover, you will no longer need to be worried about the grass needing to be mowed or the porch light bulb needing to be replaced, as the tenant will take care of it all.

A Sense of Community

Unlike other multi-family or rental real estate properties, several build-to-rent homes are typically constructed together, creating a sense of community for the tenants. While providing the people with a safe neighborhood to live in, build-to-rent communities also offer amenities such as parks, pools, and playgrounds.?

Built-to-Rent Is the Future

Specifically designed to provide comfort to long-term tenants, build-to-rent homes offer the best of both worlds: the perks of independent property and the ease of renting. Summing it all up, there is no denying that build-to-rent developments can elevate your renting or real estate investing experience, depending on your budget, location, and needs. So, if you are looking for a safe option to grow your wealth, invest in build-to-rent homes!