Is Building to Rent the Best Way To Get on the Property Ladder?

These days, there are many different ways for somebody to get on the property ladder as long as they have enough money to invest. Whether you rent out a single room or decide to build a home from scratch, there are options for a whole range of budgets. One of the more recent options that is picking up in popularity is the build-to-rent model. This just means building a home that is designed around renters, one of the more popular ways to find accommodation these days.

 

But what makes building to rent such a great option for getting on the property ladder? How does it help to expand your portfolio in the future, and does it offer consistent returns?

Rental properties come with many advantages that you won’t see with traditional home ownership

 

Renting a property is becoming more and more popular due to the number of benefits it offers over traditional home ownership. This is one of the driving forces behind why building to rent has become such a great option in recent years. Property developers are looking for a simple way to get on the ladder without much hassle, and with options that likely won’t fail. With the increasing popularity of renting, it makes sense that building to rent has become such a lucrative option.

 

A couple of benefits include a strong sense of community with other renters, a more renter-focused customer service package, and also the ability to rent on shorter contract terms. When it comes to pricing your rental property, you generally have a lot of leeway because there are renters in different categories. Some renters are looking for a premium experience for a short-term stay, whereas others are looking for an affordable long-term option. Some renters appreciate unique views and convenient locations, while others are more focused on the local community. There are so many niches to carve that you can really diversify your portfolio, making it a lot easier to climb the property ladder.

 

Getting started with a build-to-rent development

 

Getting started with a build-to-rent development will take a lot of planning and consideration. For instance, you might want to check if there are local duplex home builders to help you maximize the amount of value you get from your land or a property. However, if you’re looking for more affordable options, then it might be possible to convert your existing home into multiple different properties. There are lots of options here, and it’s best to consider your budget and the local audience where you plan to develop a property.

 

You’ll also need to figure out how you’ll get tenants. There are simple ways to go about this, such as working with the local real estate market and listing your property for rental. You could even go as far to have someone else manage your property. However, you might find that the control of managing this yourself gives a bit more flexibility. While it does take more work, you’ll end up with larger returns over a long period of time.