What is Build-to-Rent (BTR)?
Build-to-rent (BTR) housing is a large-scale residential development designed for long-term rental rather than resale. BTR homes can be single-family homes similar to suburban neighborhoods with community amenities, duplexes, row homes sharing a common wall, or small-lot homes with a smaller land footprint. These properties are owned and managed by a single entity for long-term rental income.
When planning to invest in BTRs, an investor may have to choose between building custom or standard build homes
Custom Build-to-Rent Homes: Pros and Cons
At HiLine Homes, we offer custom BTR building to investors for energy-efficient homes adapted to the region where the houses are constructed. Here are the advantages of making custom BTR homes for long-term value and steady returns.
- The HiLine Homes Advantage
The advantage of custom-built homes is that investors can stand out with enhanced BTR homes that offer more value than pre-designed homes.
- Access to Built-In Equity due to Property Owner Responsibilities: HiLine Home is partnered with approved lenders that help investors access potential equity for loans.
- Personalization & Design Control: Investors have the power to customize details of their BTR investments, including floor plans, materials, and finishes. For example, if an investor is developing BTR property near a military base, they may opt to add additional storage closets to increase the value and address the needs of military tenants, ultimately enhancing the value for them.
- Energy-Efficient and Sustainable Home Features: We incorporate sustainable building practices into our BTR homes to help tenants save on energy and water costs, boosting the appeal of these properties for those seeking energy-efficient and eco-friendly living. Features may include efficient plumbing systems, energy-efficient lighting, modern HVAC systems, and more—depending on region-specific requirements.
- Disadvantages
- Finding Suitable Land: Investors may face location constraints when selecting a lot for a custom-built home. For example, suppose an investor plans to build custom BTR homes larger than standard-built models. In that case, they may face challenges in finding land that can accommodate the desired number of homes, particularly given the lot size and spacing requirements.
- Potential for Expenses: BTR homes can include unique design features, such as a spacious balcony off the primary suite, that enhance their appeal to tenants. While these upgrades can elevate the living experience, they may also incur higher upfront costs than standard BTR builds.
- Longer Construction Timeline: Custom builds require permits, design approvals, and extended construction timelines. Fortunately, HiLine Homes has a streamlined process for building BTR homes and guides investors through the requirements and approvals.
Choosing Between Custom and Standard Build
Investment Costs & ROI
Choose Standard Build BTR Homes: If you want more affordability when investing, standard build homes are cheaper to build, due to home investor responsibilities, with potential built-in equity.
Choose Custom BTR Homes: Unlike standard build BTR homes, custom homes have higher-end finishes that enhance the livability of a house through design, comfort, and convenience. At HiLine Homes, each of our home plans offers standard and custom feature options for homeowners to choose from.
Choose Which BTR Housing to Invest In
Whether custom or standard build rental homes, many forms of houses exist for the real estate investor’s advantage for their unique lot, budget, and more. Browse our options below, and let’s make your vision come true.
- Single-Family Homes
Single-family homes bring tenants closer to their dreams of homeownership. They provide privacy and a more breathable space than apartments, enhancing home living. Want to know which floor plans work best for BTR single-family homes? View our Build to Rent Homes: Home Rental Built Right article to discover the answers!
- Multi-Family Homes
Multi-family homes can house families of multiple generations while providing privacy, independence, and ample living space, such as having dual primary suites. These assets benefit tenants living with elderly parents, children, friends, and other loved ones. See Build to Rent Multi-Family Homes to learn more.
- Duplexes
Duplexes are multi-family properties in which two units share one roof or wall. These are an excellent option for starting real estate investors as they require less land and fewer construction materials. See our Build to Rent Duplexes to learn about custom duplex building.
- ADUs
Additional dwelling units (ADUs) are secondary housing units that are independent from the main house. They have their own kitchen, laundry facilities, a full bathroom, and other standard home utilities—perfect for career professionals renting alone or with a partner. Want to optimize the number of homes in a small lot? Build-to-rent ADUs may be the solution you’re looking for!
Partner with a Trusted Builder for Your BTR Investment
Why HiLine Homes is the Right Choice
For nearly 30 years, HiLine Homes has been helping investors build affordable, high-quality rental homes. Our streamlined BTR home building process ensures your project is successful and affordable. Furthermore, our customizable floor plans maximize rental value, minimize maintenance costs, and provide potential built-in home equity.
Next Steps: Get a Home Consultation Today
With custom-built BTR homes, investors can optimize their return on investment for consistent long-term cash flow. By capturing the custom designs they have in mind, we fulfill their vision for their investments. Contact us today to learn more about choosing the best BTR home investments.
FAQs
With concerns about homeownership affordability and rising rental preferences, BTR housing offers a unique solution for tenants seeking long-term rental options that provide the benefits of a standalone home without the financial burdens of home insurance and mortgages. Single-family dwellings, ADUs, duplexes, or other rental home options fulfill this demand, ensuring reliable cash flow for real estate investors. Discover how in our Why B2R is a Growing Market for Investors article.
As the classic saying in real estate investing goes, “Location, location, location.” Targeting workforce-dense areas increases occupancy rates for people who wish the convenience of living near their offices and other work hubs. While remote work continues to trend among office-based professions, Build-to-Rent (BTR) housing remains in high demand among individuals whose jobs require them to be on-site. Discover the vital locations recommended for BTR housing with our Best Locations for Building a Rental Property article.
