Who Will Succeed in the Build-to-Rent Sector Remains to be Seen

A new trend has arisen in the single-family homes industry – the build-to-rent approach. While builders have been flirting with this concept for a while, it may continue to grow in popularity as interest rates continue to rise and home buying becomes more difficult. The concept is that a builder develops and builds out a single-family subdivision like its typical business, but instead of selling homes individually, it maintains ownership in one entity and each home is available for rent.

This article discusses why build-to-rent is popular and identifies several business considerations that go into the strategy, but several legal determinations also need to be considered. For example: Does the municipality have an ordinance preventing this type of development (or will it if build-to-rent continues to gain traction)? How will the HOA be managed? Should the lots be platted individually like a typical single-family subdivision or as one parcel like typical apartments? Read more from Builder Online here.

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