The short answer to the title of our article is “yes. Yes you should”. But that wouldn’t make for a very compelling argument. So instead, we thought it would be a good idea to dedicate a few hundred words to why you should invest in Build-to-Rent.
It’s a good time for the sector, with 150,000-plus Build-to-Rent communities either built, in construction or in planning across the UK. In the coming years, it will make up a significant part of the rental market, offering renters more choice when it comes to living in exclusively-designed homes.
But these benefits aren’t the reasons why Build-to-Rent is such a strong investment; it’s all about what these communities offer. So read on, and find out five reasons why you should invest in a Build-to-Rent community.
1) Homes designed for renters
With the rental market set to make up a quarter of the UK property scene by 2021, the demand for high-quality rental accommodation will only increase. Build-to-Rent has already seen a 22% increase between 2019 and 2020, as more renters discover a unique way to live.
Operating a Build-to-Rent community provides a chance to invest in a growing market and cater to demand. Plus, you can be part of a culture where renters come first and show their loyalty thanks to the great homes that you provide.
The homes in Build-to-Rent communities tend to be of a higher quality than other rental properties. Therefore, renters are happier to pay premium prices for everything that comes with a community, from high-quality homes to excellent social spaces.
In fact, Build-to-Rent properties command up to 11% more rent on average than regular rental homes. Reliable rental income and potential for long-term growth make investing in Build-to-Rent a smart idea in both the long and short term.
Happy renters mean longer tenancies, with many staying for three-years plus in a Build-to-Rent community. This leads to shorter void periods, which is the holy grail for all landlords – whether they own one property or are professional landlords with hundreds of units.
Any investment in the rental market needs to come with some form of certainty when it comes to voids. And while it’s impossible to predict zero void periods, Build-to-Rent communities are a safer bet than other rental homes thanks to their renter-first approach.
Build-to-Rent communities come in varying forms. You can opt for full apartments or go down the Co-Living route, renting out rooms and creating all-encompassing social spaces. There’s also flexibility around the types of social spaces.
From residents’ lounges and rooftops to gyms and cinema rooms, there’s plenty of options when it comes to crafting the social spaces that excite renters. And lots of options means there’s a smaller margin for error when finding the right blend of social spaces to attract renters. Of course, you’ll want to ensure that you have the essentials.
Working with partners like Movebubble means you can access 700,000-plus pre-qualified renters for your new Build-to-Rent community. Use our Video Walkthroughs to show renters around the properties without them needing to physically visit, which means they can get an idea of what it's like to live in your homes and communal spaces without leaving the couch.
If they like what they see, renters can use the Instant Book feature to secure your homes straight away. That means renters can search, view and secure your homes on the Movebubble app without a physical viewing, speeding up the move-in process.
As safe as houses
Investing in the property market is seen as one of the safer investment methods, and Build-to-Rent communities add an extra layer of security. With homes designed exclusively for renters, it’s easy to see why those navigating the rental market would opt for a Build-to-Rent home. High-quality homes built around a community. That’s even safer than houses if you ask us.