Reasons An Investor Should Go for Built-to-Rent Home

Looking to invest in real estate but need help figuring out where to start? For example, have you considered built-to-rent homes?

They’re making a splash in the investment world. With built-to-rent homes, you can enjoy the benefits of owning a property without the hassle of managing it yourself.

These properties are designed for rental purposes, so you can rest assured that your investment will generate consistent cash flow.

So why should you go for a built-to-rent home?

Well, for starters, it’s a wise financial decision. But that’s just the tip of the iceberg. So let’s dive deeper and explore why built-to-rent homes are the way to go.

What Exactly Is Build-to-rent?

Build-to-rent homes are properties that are constructed with the sole purpose of being rented out. Unlike traditional housing developments, these homes intend to sell to owner-occupiers or buy-to-let landlords.

Instead, they’re designed and built to cater to the rental market.

Often abbreviated as BTR or B2R, build-to-rent homes are developed by big property development companies or landlords, like Meridian Pacific Properties, who cater specifically to the rental market.

The entire focus of these properties is on creating high-quality, purpose-built homes for rent.

Build-to-rent is considered an entirely new asset class for property and corporate investors. And it’s not hard to see why. With the demand for rental homes constantly increasing, especially amongst millennials and Gen Z, the build-to-rent model is becoming increasingly popular.

4 Types Of Build-To-Rent Homes

One of the most incredible things about the BTR market is the sheer variety of home types available to renters.

Here are some of the most popular build-to-rent options:

1. Single-family Homes

These homes look and feel like the traditional suburban homes you usually see. The difference is that these homes are designed for renters and often have community amenities like gyms or pools.

2. Duplexes

If you’re looking for more privacy, a BTR duplex might be your ideal option. These homes have two attached units, perfect for families or roommates who want their own space.

3. Row Homes

Such homes are for urban dwellers. BTR row homes are built side-by-side, creating a charming “row” of houses with a common wall. It is considered as a perfect choice for city living.

4. Small Lot homes

If you are short on space, BTR small lot homes might be just what you need. These single-family residences are built on compact lots, making them an affordable and low-maintenance option for renters.

Whatever your style or budget, the build-to-rent market has something for everyone. So go ahead, and explore your options.

You must look for various aspects before buying a home for yourself to make the most of your investment.

Benefits Of Build-To-Rent Homes

Build-to-rent homes are a game-changer in the rental market, offering a range of advantages that traditional rentals can’t match.

Check out why you should consider a BTR home for your next move.

Low-Maintenance Living

Renting a BTR home means you never have to worry about maintenance or repairs. Instead, landlords are responsible for keeping the property in excellent condition, so you can sit back and relax without any added stress.

Superior Renting Experience

BTR homes are designed with renters in mind, offering a range of modern amenities and features that traditional homes simply can’t match. From high-speed internet to smart home technology, BTR homes provide a rental experience that’s truly next-level.

High Risk-Adjusted Returns

Build-to-rent homes offer investors a strong return on investment, with a lower risk level than other real estate investments. It means landlords are incentivized to keep the property in top condition, ensuring a great rental experience for tenants.

Prime Location Perks

BTR homes are typically located in desirable areas, with easy access to local amenities and transportation. It means that renters can enjoy all the perks of city living without sacrificing comfort or convenience.

Competitive Rent Ratios

Build-to-rent homes often offer competitive rental rates, making them an affordable option for renters. In addition, with various sizes and styles available, you can find a BTR home that fits your budget.

Home Value Surge

As demand for BTR homes grows, so does the property’s value. It means renting built-to-rent homes could be a wise long-term investment, as your home’s value could be appreciated over time.

Reduced Tenant Shuffle

Because built-to-rent homes are designed to meet the needs of renters, tenants are more likely to stay in their homes for more extended periods.

This means less turnover and more stability for renters, which can be a significant advantage in the fast-paced rental market.

Dreamy Tenants

Professional landlords often manage built-to-rent homes with a vested interest in keeping their properties well-maintained and occupied by responsible tenants.

This means that renters are more likely to be surrounded by respectful, reliable neighbors.

Booming Build Craze

As the market for rental properties continues to rise, developers are investing in building new Built-to-rent homes.

This means renters have a great selection of properties and are more likely to find a home that meets their needs.

Investment With Peace Of Mind

Investors can enjoy the added benefit of a builder’s assurance regarding built-to-rent homes.

A builder’s warranty is often included as these properties give you peace of mind that the builder will resolve any construction-related issues.

Overall, you can invest with confidence by considering a few tips while buying a home. And you know a guarantee from the builder backs your investment in BTR homes.

FAQs

What is a built-to-rent home?

A built-to-rent home is a specifically designed and constructed property to be rented out to tenants rather than sold to individual homeowners.

Why should an investor consider investing in a built-to-rent home?

Investing in a built-to-rent home can provide a reliable stream of rental income, lower vacancy rates, and potentially higher returns than traditional rental properties.

What are some advantages of investing in a built-to-rent home?

Some advantages of investing in a built-to-rent home include higher-quality construction and amenities, lower maintenance costs, reduced competition, and more predictable cash flows.