Many new build to rent projects are popping up. This type of project is becoming more and more popular, especially in urban areas. There are several reasons why build to rent projects are becoming more popular.
Property ownership typically comes at a high price. Build to rent offers a solution for many issues including housing shortage and a lucrative opportunity for investors and developers.
With build to rent projects, you get homes built by investors for investors. It’s a unique investment strategy giving you more control and helping you realize the dream of investing in real estate.
If you’re considering a build to rent project, it’s time to understand the key benefits. Here are three main benefits you can gain with a build to rent project.
1. Consistent Cash Flow without Depreciation
Build to rent projects don’t tend to fall under the conventional models for valuation. They are valued by the restrictive merits of the owner and the potential of long-term income from the properties. It’s possible to achieve consistent cash flow from this type of project without depreciation.
2. Faster Rates of Absorption
Compared to build for sale housing projects, build to rent developments offer a much faster absorption rate. In some cases, it can be as much as twice as fast.
Effectively, a build to rent project can deliver a larger number of units at prices more suited to the location. It’s possible to lease as many as 60 units per month and accelerate the delivery based on the local need.
3. Add Additional Income through Amenities
Build to rent projects offer the ability to create even more income through amenities, such as laundry or a gym. While these businesses need to be factored into the operational cost and into the rent (or charged separately), they add something extra.
Adding amenities to a build to rent project means you can charge more for rent. You can use third-party business owners to get around the additional expenditures, as well. If you want to add other types of income, adding amenities is an option and a benefit of a build to rent project.
Along with these three main benefits, when you choose a build to rent project, you won’t need to worry about paying real estate agent commissions like you do when you buy a property. Plus, the newer properties won’t cost as much to insure and will likely come with warranties on some of the systems.
Build to rent projects are becoming increasingly popular for many reasons. These benefits are just the tip of the iceberg. When you work with Southern Impression Homes, you get the ability to better plan your investment strategy with build to rent projects.
If you’re ready to start investing in real estate through build to rent projects, we’re here to help. Our current markets in Florida and the Greater Atlanta area offer plenty of opportunities to discover the many great benefits of build to rent projects.