There’s no denying that more people are renting these days than buying, especially in Europe where there is a Build to Rent trend that that’s taking the single-family market by storm.
With Build to Rent, homes are being constructed specifically for renters instead of selling those homes as builders may have done in the past.
This trend has also caught the attention of institutional investors including companies that manage insurance and or pension funds.
Build to Rent Homes are being constructed across Europe especially close to cities so that those properties can target renters who work in the city.
Although the concept of Build to Rent isn’t anything new because this is how multifamily homes have been built over the years, it is something that economic analysts are taking note of. Single-family homes are traditionally built for resale to traditional home buyers so the fact that builders and investors are building more homes for the single-family market is something to take note of.
Learn More About Build to Rent
It’s becoming the industry’s most exciting opportunity for single-family rental investors and property management companies to grow doors and expand their portfolios whether they build one at a time or enmasse. Subdivisions, which can include 50 or more homes, require large sums of capital versus buying existing properties are building a handful here and there, and experts say the potential for revenue generation, diversification and growth are good at any size.
“We look for subdivisions typically over 100 units, so we’re looking at a minimum $25 million investment,” said Jay Byce, senior vice president and co-founder of ResiBuilt, which plans to deliver 400 homes this year and 800 next.
Contact 36 North Property Management
To learn more about Build to Rent, or to speak with us about our Monterey County Property Management services, contact us today by calling (831) 484-4604 or click here to connect with us online.