“In any moment of decision, the best thing you can do is the right thing, the next best thing is the wrong thing, and the worst thing you can do is nothing.” – Theodore Roosevelt

Many Americans love the advantages of renting: monthly payments can be less, there’s no responsibility for maintenance or annual taxes, and a deposit is far less than a down payment on a home. And while apartment or condo rental life may not be for you, a trendy build-to-rent home option may be soon coming to a neighborhood near you! It always pays to be an informed consumer, so let’s take a look at what you need to know about build-to-rent homes.

What is a build-to-rent home?

Generally designed for single families, build-to-rent homes are master-planned neighborhoods purposely built for renters. This innovative concept allows long-term renters to live within a planned rental community that comes with perks. According to a report by commercial real estate company CBRE, the majority of BTR properties consist of:

50 or more homes, such as town/row homes, duplexes, or small lot homes
1 to 4 bedrooms, and range from 1,500 to 2,000 square feet

BTR homes are popular choices for empty nesters, millennials, and those going through unexpected life changes, as well as for those looking for financial flexibility and freedom.

Different terms for build-to-rent.

There are a few interchangeable terms for build-to-rent homes, including:

B2R or BTR (build-to-rent) homes
BFR (build-for-rent) homes
Single Family for Rent
Single-Family Rental

The advantages of BTR homes vs. average rentals.

When you’re looking to rent in today’s market, sometimes you have to settle for what you can find. Typically, BTR homes and communities:

are located in targeted areas of need near larger work centers and public transportation
are new builds providing a variety of home sizes
come with more privacy than an apartment rental
offer larger floor plans with:
- higher ceilings
- larger windows
- limited shared walls, if any, with other units, and no tenants above or below
- extra storage
- outdoor space
- upgraded finishing options that are low maintenance and durable
- attached parking
offer better value for your monthly rental expense
provides stability in knowing that the landlord won’t sell their home from underneath you

Common BTR Community Amenities can include:
Dog Parks
BBQ Areas
Business Center
Cinemas
Clubhouses
Coffee Shops
Easily Accessible Parking
Fenced Yards
Fitness Centers
Nature Trails

B2R renters can experience a higher quality of life and a sense of community where lifestyle is showcased through convenient neighborhood amenities, home design, and quality construction. And developers love the BTR concept as there’s no dealing with homeowners during construction so the development is completed faster. BTR communities also have an astounding 74% rental renewal rate, according to some industry experts.

The advantages of professionally managed build-to-rent-home communities.

Build-to-rent homes could be offered by a private landlord, but in many cases, these new BTR home developments are professionally managed. The advantages to renters means:

you won’t have to worry or be responsible for things like ongoing home/neighborhood maintenance, landscaping, or unexpected repairs
you won’t have to pay for property taxes, HOA fees, or homeowner’s insurance (although tenant insurance may still be required but is generally much less)

What are the rental prices at BTR communities?

It depends on the location and size of the rental, but since BTRs are new builds with more amenities, it’s likely the cost of a build-to-rent home will be higher than what you might pay monthly for an apartment. But as with anything, if you want the latest and greatest, a BTR could be the exact fit you’re looking for.

Build-to-Rent Homes Predictions & Trends

Currently, the bulk of the BTR home trend has caught on in Arizona, California, Colorado, Florida, Georgia, North Carolina, and Texas. An analysis of Census Bureau data by the National Association of Home Builders showed there were 21,000 B2R homes built in a 3-month period recently, which was a 91% increase compared to the same time a year before. BTR is a growing trend since Americans still struggle with saving for a down payment, along with housing market conditions, including low inventory and high prices. Some industry experts, like Hunter Housing Economics, suggest that investors will throw upwards of $40 billion into developing B2R housing in the immediate future.

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