The build-to-rent model, also known as the BTR model, is a real estate development strategy in which developers build and operate rental properties specifically designed for long-term renting. Unlike traditional residential property development, where units are sold to individual buyers, build-to-rent developments are owned by a single entity or consortium, typically an institutional investor or a real estate investment trust (REIT), which leases the units to tenants.
Build-to-rent properties are designed with amenities and services that appeal to renters, such as shared community spaces, gyms, and on-site management. The units themselves are often designed to be smaller and more efficient than traditional apartments or houses, making them more affordable for renters.
The build-to-rent model has gained popularity in recent years as demand for rental housing has grown, particularly among young professionals and families. It offers a number of benefits to both developers and renters, including more predictable cash flows for developers and greater flexibility and convenience for renters.
Overall, the build-to-rent model represents a shift towards more institutionalized ownership and management of residential rental properties, and is expected to continue to grow in popularity in the coming years.
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