The housing market in the United States is constantly evolving, and one of the latest trends is built-to-rent communities. These communities offer a unique housing option perfect for any kind of renter. Build-to-rent communities have been around since the 1980s, but their popularity picked up after the great recession of 2008 when investors started purchasing communities of foreclosed homes.
What Is a Built-to-Rent Community?
A build-to-rent community, also known as a BTR, is a housing development in which a real estate company or a management company builds or buys a collection of rental properties in a specific area with the primary intention of renting out the individual units to tenants instead of selling them. A build-to-rent home usually looks like a traditional suburban style family home, but they can also be duplexes, row homes, which are homes-built side by side that share a common wall, or a small lot home.
Benefits of Build-to-Rent Communities
- Amenities
BTR communities often include amenities such as fitness centers, swimming pools, communal lounges, outdoor spaces, and sometimes co-working spaces.
- Flexible Lease Terms
BTR homes may offer flexible lease terms, allowing tenants to rent for shorter or longer periods, depending on their needs and preferences. This can be helpful if you and your family are looking to settle down for a couple of years.
- More Space
Like homes in a traditional single-family neighborhood, BTR communities typically have a front yard and a backyard, giving you, your pets, and your kids more space to run around than a typical apartment complex. Plus, BTR homes usually have more than two bedrooms, giving you more space for your family or roommates.
- Single Ownership
Unlike traditional multi-unit apartment buildings, which are owned by large property management companies, BTR communities are typically owned by a single entity, such as a real estate developer or an investment firm.
- Maintenance and Repairs
One of the significant advantages of build-to-rent communities is that they often come with professional property management services. This means that maintenance and repairs are typically handled by the property management company, reducing stress for you.
- Freedom from the Costs of Homeownership
If you are looking for a community, you may have compared the monthly cost of rent vs a monthly mortgage payment. As a homeowner, you are responsible for property taxes, homeowners’ insurance, and HOA feeds. When you live in a BTR community, you don’t have any pressure of homeowner costs, but you’re able to live in a community of renters versus living in a traditional community of mostly homeowners.
Why Are Build-to-Rent Communities So Popular?
Over the past couple of years, build-to-rent communities have risen in popularity because they are all built together, creating more supply in the market. Depending on where you live, a BTR home can offer more space and is more affordable than a traditional apartment. These homes deliver all the amenities of the apartment and the benefits of the house, without having to become a homeowner.
Features of a Build-to-Rent Home
Build-to-rent homes usually consist of homes that are close together and include amenities such as a pool and a gym. Plus, new BTR communities have high-quality, energy-saving appliances, high-speed internet, and cable. BTR communities are typically managed by professional management companies, which means you can have the luxury of living in a home while having any maintenance issues handled promptly.
The Drawbacks of a Build-to-Rent Home
Even though living in a BTR community provides you with the same feeling as living in suburbia, there are still some drawbacks, such as rent increases, limited control over the property, and not being able to make major changes. Finally, BTR communities can have higher rent than traditional apartment complexes, depending on where you live.
How to Determine if a Build-to-Rent Community Is Right for You
To determine if a build-to-rent community is right for you, determine how much you would like to spend on rent. Financial advisors recommend only spending 30% of your income on rent. After you have determined your budget, you can use Apartments.com to search for homes and find a build-to-rent community perfect for you and your family.
Build-to-rent communities have become popular for a reason. Whether you don’t feel ready for homeownership or seek a community, BTR allows you to have your perfect home without stress.
