Updated on August 19th, 2022
Build-to-rent (BTR) homes are ideal for people who want the benefits of community living without the hassle of maintenance, mortgage payments, or HOA dues. In recent years, the movement to create more of these types of homes has been increasing due to higher demand. Because of its rapid growth, many real estate companies and investors are developing BTR properties to capitalize on the craze.
Whether you’re considering rentals in Bend, OR or investing in properties in Nashville, TN, this article covers all the basics of build-to-rent homes. Read on to learn more about whether BTR properties are right for you.
What is build-to-rent?
Originating in the 1980s, build-to-rent homes are single-family homes built for long-term rental. BTR, B2R, build-for-rent, and BFR are all interchangeable terms describing the same idea. A typical BTR tenant usually plans to stay in the rental for several years instead of buying a house. They’re generally looking for something with more space, easy parking, and an accessible community, as well as somewhere quiet and easily maintainable.
Renters’ needs influence developers’ decisions. They aim to appeal to tenants by offering high-end amenities and top-notch property management. Swimming pools, gyms, parks, and gardens are all common in build-to-rent communities.
Purchasing and rehabbing existing homes can be a slow and complex process that’s hard to scale, which is why “many institutional investors have implemented a build-to-rent model to increase profits,” says Jason Marcordes from Landmark Property Management. “This model allows investors to build entire communities at once, scale more quickly, and have much more predictable costs.”
What counts as a build-to-rent home?
Any home built for long-term renting counts as a build-to-rent home. They can come in many styles and layouts but are most likely to fit one of the following…