Keller Williams Luxury International, Palm Beaches
Arthur Martens Group, Keller Williams Luxury International, Palm Beaches
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Build-to-Rent Investment Properties

by Arthur Martens Group 01/26/2020

Image by Виктория Бородинова from Pixabay

Build-to-rent is a major term right now for investors. The industry has seen a serious leap in interest in just the past year, making nearly everyone in the real estate space sit up and take notice. We'll look at the special nature of these properties and which attributes make a property more valuable than another. 

The Hot Spots 

Build-to-rent generally refers to a single-family property built to be used by renters rather than owners. It's popular because it's difficult to profit off of a new build, especially when you take into account the price of the land, materials, and permit costs. The areas that are exploding with these properties tend to be affordable cities with plenty of available infrastructure.

Atlanta, Houston, Charlotte: these hot spots are attracting young renters who may not have a sizable down payment saved for a new house, but they're still willing to pay for the right amenities. It's making it relatively easy for investors to recoup their money (and then some). 

The History of Build-to-Rent 

This trend got its start after the recession churned out countless foreclosures and short sales, but has since morphed into its own asset class. Once home prices started to creep back up, investors saw that there was plenty of money to be made in renting even after the economy returned. Today, the build-to-rent industry is largely driven by new homes. Developers may build several dozen homes in a single area, making it easier for property managers to respond to renter requests and perform regular maintenance.  

What's Behind the Success

The most successful build-to-rent properties are those in highly popular areas that would otherwise be too expensive to the everyday renter. Less than half of all millennials have any kind of substantial savings to put toward homeownership, and even the Baby Boomers are starting to turn toward renting (whether they need to or not). In addition, home appreciation has slowed over the past few years and new tax rules don't exactly make it an open-and-shut case that owning is the best choice available. 

Investors who have the opportunity to get involved in build-to-rent will likely be happy they did. The key is to look for properties that are sensible in nature. Avoid those in areas that make it difficult to build (either through expensive permits or restrictive building codes). Opt for properties in nice areas made with affordable, durable materials. This will cut back on maintenance and increase your profits in the long run. 

About the Author
Author

Arthur Martens Group

Hi, I'm Arthur Martens and my team and I would love to assist you. Whether you're in the research phase at the beginning of your real estate search or you know exactly what you're looking for, you'll benefit from having a real estate professional by your side. I'd be honored to put my teams my real estate experience to work for you.

Our diversely experienced team specializes in serving the real estate needs of Palm Beach Counties' leaders & their families with unparalleled integrity. Known to provide a remarkable white-glove experience for locals and relocating residents alike. Connect with us to experience it for yourself or those you care about. 

"Dreams? Delivered!" That's not just a slogan for my team and I but the core of how the team does business and why leaders in Palm Beach County trust his team. Arthur & his team believe in serving others as they want to be served and won't take on a client or conduct a transaction unless there can be a win-win. This mode of operation arises out of many successes and "learning experiences" and has inspired a drive for providing excellence with a highly personal touch. 

Prior to moving his company over to the leading International brand, Keller Williams Luxury, Arthur was noted in the top 20 regionally of his previous firm and has since been quoted in / had his listing(s) featured in media outlets such as Architectural Digest, LA Times, Mansions Global, among others. 

Arthur has been a licensed real estate broker since 2003 and offered multi-state REALTOR services in the Midwest focused on luxury and vacation properties in Chicago & along Lake Michigan. During that time he was also the managing partner of a small real estate investment company serving investors nationally. Most importantly, Arthur is professional in his systems and how he leads his team…so every client can always expect a first class experience.