Recent events in the real estate market have priced many citizens out of the home-buying market. However, being a renter doesn’t have to mean not taking care of your home or engaging with your community. As a landlord, participating in a build to rent community may be the best place to put your dollars.
Your Tenants Are Invested In The Community
One of the big benefits of investing in a build to rent community is that your tenants are excited to be there and want to be part of a healthy, quiet community.
While traditional standalone rental homes in the midst of owner-occupied homes often turn into houses that nobody cares about, being part of a community gives you much more control and allows you the chance to concentrate your resources.
Community amenities are part of what tenants are paying for in such a community. Be prepared to incorporate community structures, such as:
- tennis and pickleball courts
- a pool
- a playground
- a greenspace
Unlike a traditional rental house or apartment building, you will need to increase your insurance and liability coverage. Do discuss your investment plans with your attorney, insurance agent and accountant so you can avoid litigation worries.
You Can Enjoy Low Turnover
Because you’re building a community, you will likely be able to rent to families and more stable earners. Not only will they benefit from living in a brand new building, but the amenities mean they can enjoy a quality home life without a lot of driving.
You can customize your community for your area and market. For example, if your build project is in a 5G city popular with digital freelancers or those who work from home, you can build a series of small row houses with tiny yards to allow folks their own spaces without a lot of time green space to maintain.
You Can Offer Variety
If your community building plans will focus on singles, make sure you offer properties from studio apartments up to 2-bedroom places. Once you have a tenant who loves the community and who you are happy with, they can scale up or down their living space as needed.
Do make sure that you offer a number of homes that allow no-step access. You may find that your intentional community is an ideal space for those with limited mobility or for senior citizens.
Security Can Be Designed Into the Space
Your facility can offer your renters a great deal of comfort by planning out
- security gates at the entrances
- covered and well-lit parking
- an Uber drop
- motion detector lights at dark corners
Because you’re constructing from the ground up, you can also incorporate security alarms into each apartment or home. Boost the tech with door cameras and smart thermostats. Hire security to drive through the shared parking areas overnight and do your best to encourage community buy-in by asking community members to reach out to security personnel if they see anything suspicious.
If you’re in an area that has been heavily impacted by drought in the past, consider building to a water-friendly standard. Skip the lawn and put in xeriscaping. Add solar on the roofs and over the parking shelters.
As the community grows, consider surveying your tenants to find out if there is any interest in community gardens. Building raised beds for senior citizens will be an ideal addition; you can schedule community events and bring in speakers from your local arboretum or botanical gardens to offer expertise on what to plant and when.
Be aware that you may need to hire a landscaper to clean up these gardens once the plants go dormant due to extreme cold or heat. Of course, community interest will direct the size and frequency of these gardens.
The world of rental property is changing rapidly. There are many citizens who have no interest in owning their own property or maintaining a yard, exterior and roof. Your build to rent community can be a stable, secure investment that you can hold for years to come.