Build to Rent Business Model

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Build to Rent is a real estate investing strategy where developers build single-family houses with the intention of renting them out rather than selling them.

While there are similarities to multifamily, the product is dramatically different than multifamily buildings. There are advantages and disadvantages to build to rent.

Predictable Maintainance and Capex Costs

Build To Rent Advantages

Typically, new constructed homes have lower maintainance costs than existing housing stock. It is also much easier to project maintainance costs on new builds than older homes.

Huge Demand for New Construction

Everyone wants to rent a house with new, clean fixtures. In a new construction home, everything is new. Homes built now can more closely reflect current trends and demands than homes built in the past.

Strong Appreciation

The lack of new housing in the American market compared to what the demand was for the last decade has created a demand for new housing. This drives appreciation opportunities.

Lower Turnover

This can be attributed to lower competition as a majority of the rental inventory out there is not housing stock.

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