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If you rent and like the idea of having the flexibility of renting, the comfort of a house, and the amenities of a local community, then build-to-rent communities might interest you. Or, if you’re an investor seeking to meet the increasing demand for rental properties that offer more than traditional apartments, this could also appeal to you.
Learn more about build-to-rent communities and why living in one might be ideal for you.
What Is the Concept of “Build-To-Rent Communities”?
Build-to-rent communities started gaining popularity in the 1980s but really took off after the 2008 financial crisis. The recession created a huge demand for rental homes that were affordable and could be a long-term option for renters, and Build-to-rent communities meet these needs.
Many people, especially Millennials, can’t afford to buy a home and prefer renting because it fits their budget and means less responsibility. In fact, a quarter of Millennials see themselves renting forever. With high mortgage rates and fewer people applying for home loans, build-to-rent communities are expected to keep growing. They offer a great alternative for people who can’t buy a home right now.
What Is a Build-to-Rent Community?
Build-to-rent communities is a type of housing development specifically designed to be rented out rather than sold. Unlike traditional housing projects that are initially built for sale and later rented out, Build-to-rent communities are purposefully constructed with renters in mind right from the start.
These communities typically include single-family homes, duplexes, row homes, townhomes, and small lot homes (known as horizontal apartments). They are managed by a single entity to ensure consistent quality throughout the neighbourhood.
One of the main attractions of build-to-rent communities is their design for long-term rental value. The layout and home designs are optimised to meet renters’ needs, offering modern amenities, shared spaces, recreational areas, and other features aimed at enhancing quality of life. The community-focused approach creates a cohesive neighbourhood environment.
Build-to-rent communities appeal to families, couples, and individuals who seek a high-quality rental experience. They are also attractive to investors looking for properties likely to attract long-term tenants, making them a promising investment opportunity.
Build-to-Rent Communities and Traditional Rentals
In a build-to-rent community, all residents rent from the same developer like ourvillas. This means everyone has equal access to the same amenities, recreational facilities, and community events, creating a sense of togetherness. The community is managed by one owner and a single property management company.
The Pros of Renting a Build-to-Rent Home
Convenient Amenities
Build-to-rent communities offer many amenities. Homes usually come with modern features like high-quality appliances, energy-efficient technologies, garages, and yards. You can also find dog parks, fitness centres, and recreational areas nearby.
Reliable Management
Managed by a single entity, these build-to-rent communities offer reliable and efficient management, resulting in less stress over issues and consistent community policies.
Quality Construction
These homes are build-to-rent communities with long-term rental in mind, ensuring that both the homes and shared areas are well-designed and constructed.
The Cons of Renting a Build-to-Rent Home
Limited Customization
While thoughtfully designed, renters have limited ability to customise their homes.
Rent Costs
The many amenities can make build-to-rent communities more expensive than traditional apartments.
Frequently Asked Questions
What are the benefits of living in a build-to-rent community?
Living in a build-to-rent community often offers amenities like shared spaces, maintenance services, and sometimes lower utility costs. It can also provide flexibility with shorter leases compared to traditional renting.
How is build-to-rent different from traditional renting or buying a home?
In build-to-rent, you rent from a company that owns the entire community, which can mean consistent management and fewer individual landlord issues. Unlike buying, you don’t own the property, so you’re not responsible for repairs and maintenance.
Are there any drawbacks to living in a build-to-rent community?
Drawbacks can include less control over your living environment compared to owning a home, potential rent increases, and limited customization options for your living space.
What should I consider before moving into a build-to-rent community?
Before moving in, consider the lease terms, amenities offered, the community’s location and neighbourhood, the reputation of the company managing the community, and how it fits your lifestyle and budget.