Build-To-Rent (BTR): Detached Housing and the Future Of Multifamily

Build-to-rent (BTR) is a relatively new asset class that has been quietly gaining traction among both boutique and institutional investors. This exciting new asset class is exactly what it sounds like: a community of high-quality detached single-family rental properties rife with shared amenities. Historically, a developer building a community of single-family homes would follow the traditional merchant build-to-sell business model in which each home is partitioned off and sold individually. Under the build-to-rent model, a community of single-family homes is developed with the intention of appealing to the rental market, and the community operates similarly to a traditional multifamily asset. The real innovation in the build-to-rent space lies in the improved experience for tenants. BTR provides tenants with all of the best aspects of single-family rentals and upgrades the experience by developing all homes inside a professionally managed, amenity-rich community all without burdening residents with HOA costs. BTR properties have broad appeal. They are simultaneously attractive to seniors, singles and families. BTR appeals to seniors because it allows them to downsize, cash out their equity and avoid the hassle of homeownership. BTR also appeals to singles who want the privacy of a single-family home but still want a sense of community. Finally, families thrive in BTR properties because each property features a private backyard, providing each family with ample space to raise their kids. Click to read more at www.forbes.com.