While rents do vary by property and geographic location, Build-To-Rent projects can typically charge 10-30% higher rents than traditional multi-family apartments and here’s why:
1. Tenant Demographics: BTR developments are designed to attract long-term renters, often families, young professional and retirees.
Traditional multi-family appeals to a broader demographic that may often be short term or transient.
2. Construction/Design: BTR developments area designed to create a sense of community with shared amenities, lounges and dog parks. But they are also designed to emulate an actual single-family home with no shared walls, separate ac/heating, oversized windows, tall ceilings, and a private backyard.
Traditional multi-family are typically constructed with shared walls, someone above/below, a small balcony or no balcony at all and shared heating/cooling.
3. Desirable Locations: BTR developments are often constructed in suburban areas where there are other single-family homes, schools and larger living spaces.
Traditional multi-family is typically constructed in urban or high-density areas.
4. Higher Rents/Lower Turnover: BTR developments can typically charge 10-30% more than traditional multi-family for rents and tenants are more likely to renew leases in BTR communities. BTR tenants choose these properties because they often view the community as providing an enhanced quality of life and feeling of community.
Traditional multi-family apartments are typically constructed to just be a housing solution, not an enhancement to quality of life.
