Since 2023, build-to-rent has become a popular option for renters. And it’s expected to grow as we enter 2025. Here is an overview of build-to-rent and the benefits of owning or living in one.
What is Build-to-Rent?
Build-to-rent uses the best aspects of single-family rental homes and upgrades them by developing all the homes inside a professionally managed community. These communities are similar to traditional, gated residential communities with great amenities like swimming pools, tennis courts, dog parks, and professional management.
Four characteristics fit build-to-rent communities:
- Homes are designed with residents in mind
- Professional property management companies typically manage these properties
- Investors have a long-term ownership focus
- Projects are often large-scale developments with multiple properties in a specific location
The Benefits of Build-to-Rent Communities
More Living Space
Single-family homes within these communities often are bigger than the average size of apartments in the U.S. Plus, there are usually additional features like private yards, garages, and ample storage space.
More flexible Leasing Options
While traditional apartments are limited to 12 months, build-to-rent homes can provide more leasing options. These options include long-term agreements or the ability to renew on an annual basis. This gives renters a sense of stability and allows them to find a sense of community.
Overseen by Property Management
Property management companies often oversee build-to-rent communities. This adds another layer of support that residents might not find in a traditional rental setting.
Feature Upgraded Appliances and Finishes
Build-to-rent homes focus on quality and you’ll often find high-end appliances, modern finishes, and energy-efficient features that will enhance the living experience.
Why is Build-to-Rent so Popular?
For Renters
Because the price of real estate is so important, many families are looking to build-to-rent as a cheaper option with similar benefits to owning a home. Also, these communities offer more privacy, flexibility, and a better overall experience.
For Landlords
Landlords can benefit from these communities because they promise a stable and predictable income than other investment options. Plus, there is a high demand for these types of properties, which means that landlord’s occupancy rates could be doubled.
Whether you’re thinking of owning a build-to-rent property, or want to live in one, it’s important to look at your lifestyle, what’s important to you, how much you can afford, and what kind of lifestyle you’re looking for. Let Thayer & Associates help you with any build-to-rent questions or general property management inquiries you may have.