In the United States, the proportion of renters has increased during the last 14 years. Due to student loan debt and other financial hardships, many millennials may not feel financially prepared for homeownership in the wake of the 2007 housing market meltdown. Building houses with the intention of renting them out has become more popular as a result of this trend. These are Build-to-Rent communities—designed with long-term tenants in mind.
Build-to-Rent or Build-for-Rent, Defined
The phrases "build-to-rent," "BFR," and "B2R" are all interchangeable for the same concept: detached homes constructed especially for long-term renting. Although huge corporations normally manage them, it is still viable for private individuals seeking passive income through real estate investment to invest in build-to-rent properties.
What Is A Build-To-Rent House?
A build-to-rent home might have the appearance of a regular, suburban-style family home. It can also refer to a wide range of construction plans, such as the following:
Horizontal apartments: A compact cluster (usually in the hundreds) of professionally maintained, freestanding, single-family dwellings.
Duplexes are two residential units that are connected to one other.
Row houses are houses that are erected next to one other and share a shared wall.
Individual residences on small lots are erected close together. A typical residential lot will be roughly 5,000 total square feet, including the yard, although a tiny lot might be as little as 600 square feet.