Investor Benefits – Build to Rent
Benefits for investors, builders and developers of Build to Rent homes (BTR) are listed below. Most of the information came from articles in the “In The News” section of this website.
- Higher than Average Rent & Low Vacancy Rates: One of the primary attractions for investors in the build-to-rent market is the combination of higher-than-average rent and lower vacancy rates. These factors contribute to a more stable and predictable revenue stream, making BTR properties a compelling investment compared to other real estate sectors.
- Strong Absorption & Lower Turnover: The BTR sector is witnessing strong absorption, indicating a growing demand by renters. Coupled with lower resident turnover rates, this trend ensures a consistent and long-term tenant base, reducing the costs and uncertainties associated with frequent tenant changes.
- Diverse Set of Consumers: BTR properties appeal to a broad and diverse consumer base. From millennials and young professionals to small families and downsizers, the wide range of demographics attracted to BTR properties ensures a robust and resilient demand, which is a key factor for investors.
- Product Diversification for Multi-Asset Investors: For investors with multi-asset portfolios, BTR properties offer an excellent opportunity for diversification. Investing in the BTR sector can balance their investment portfolio, spreading risk and potential for returns across different asset types.
- Exit Optionality: BTR investments provide flexibility in exit strategies. Investors can choose from a range of options, from selling individual units to divesting the entire property.