Pros and Cons of Living in a Build-to-Rent Community: What Renters Need to Know

Looking for a new place to call home can be tough, especially during the busy summer season. But there’s a new trend in the rental market that’s catching on: build-to-rent communities. Unlike standard apartments for rent, these communities are made up of single-family homes designed exclusively for renters.

The rapid growth of build-to-rent communities, with a lot of new homes built in the past few years, is due to several reasons. The biggest factor is the rise of remote work, which has made people want more spacious living environments. Plus, the rising costs of buying a home have made renting a more appealing option for many who want more elbow room.

If you’re looking for a rental place, checking out build-to-rent homes can be a good idea. However, it’s important to weigh the pros and cons of renting a single-family home before making a decision. Read on to discover the advantages and disadvantages of living in a build-to-rent community.

Pros of living in a build-to-rent community

1. Build-to-rent communities offer more living space

A major benefit of build-to-rent communities is the enhanced living space they offer. The single-family homes in these communities typically surpass the average size of apartments in the U.S., providing residents with dedicated areas for work, leisure, and social activities. This is particularly advantageous for those who work from home and require additional space to meet their professional needs.

Moreover, build-to-rent homes often include desirable features like private yards, garages, and ample storage space, appealing to those seeking a suburban lifestyle. The additional space contributes to an improved quality of life, offering privacy and comfort that may be difficult to find in a conventional apartment setting.

2. Renters enjoy plenty of amenities in build-to-rent communities

Build-to-rent communities are often designed with a focus on amenities, catering to the needs and preferences of modern renters. These communities may feature shared spaces such as community centers, fitness facilities, playgrounds, and even swimming pools. This allows renters to enjoy a resort-style living experience without the added responsibilities of homeownership.

The availability of these amenities can be particularly appealing for renters who value a sense of community and the opportunity to socialize and engage with their neighbors. Additionally, the maintenance and upkeep of these shared spaces are typically handled by the property management, relieving renters of the burden of maintaining these facilities themselves.

3. Leasing options in build-to-rent communities can be more flexible

One of the significant advantages of living in a build-to-rent community is the flexibility it offers in terms of leasing. Unlike traditional apartment rentals, where leases are often limited to 12 months, build-to-rent homes may provide more versatile leasing options, including longer-term agreements or the ability to renew on an annual basis.

This flexibility can be particularly beneficial for renters who may need to relocate for work, or those who simply desire more control over their living situation. The longer-term leases can also provide a sense of stability and continuity, allowing renters to establish roots and build a sense of community within the build-to-rent neighborhood.

4. Build-to-rent communities are overseen by property management teams

Another advantage of living in build-to-rent communities is that they are typically managed by professional property management companies, which can offer a level of service and support that may be harder to find in a traditional rental scenario. These companies are responsible for maintaining the properties, addressing any maintenance or repair issues, and ensuring the overall well-being of the community.

For renters, this can mean a more streamlined and efficient experience when it comes to addressing their needs or concerns. The property management team is often readily available and responsive, providing a level of customer service that can be a significant benefit compared to self-managed rental properties.

5. Most build-to-rent homes feature upgraded appliances and finishes

One of the distinguishing features of build-to-rent homes is the higher level of quality and attention to detail in their construction and design. These rental homes often boast high-end appliances, modern finishes, and energy-efficient features that can enhance the overall living experience. But this is also because this type of properties were most likely built in the last decade.

This can be particularly appealing for renters who value upscale living and are willing to pay a premium for the added amenities and upgrades. The carefully chosen design features and items as well as the use of quality materials can also contribute to a greater sense of comfort and satisfaction for renters.

Cons of living in a build-to-rent community

1. Build-to-rent homes present limited customization opportunities

While build-to-rent homes come with plenty of amenities and modern features, they often offer fewer customization options compared to traditional rentals. Those living in single-family homes for rent may have fewer options to make significant changes or renovations to the interior of their homes, as these properties are usually designed to keep a consistent look throughout the community.

This limited customization can be a drawback for renters who like to personalize their living space. It might also limit their ability to adapt the home to specific needs or preferences, like changing the layout or choosing different appliances and finishes.

2. Residents have less negotiation power in build-to-rent communities

In a traditional rental market, renters often have the opportunity to negotiate the terms of their lease, including the rental rate and any potential concessions. However, in a build-to-rent community, the rental rates and lease terms are usually more set in stone.

This can be a disadvantage for renters who are used to having more bargaining power or who need to negotiate specific terms to fit their budget or lifestyle. The lack of negotiating power can make it harder for renters to get the best deal or to customize the lease to their individual needs.

3. Rents for single-family homes tend to be higher

One of the potential drawbacks of living in a build-to-rent community is the higher rental rates associated with these properties. The investment and development costs involved in building these communities, as well as the premium amenities and finishes, can translate into higher monthly rental prices compared to standard rental apartments.

This financial aspect is a significant consideration for many renters, especially those on a budget or seeking more affordable options. The elevated rental rates may make it difficult for some to incorporate the build-to-rent lifestyle into their financial plans, potentially limiting the accessibility of these communities for a wider range of renters.

4. Renters may experience a diminished sense of community

While build-to-rent communities often boast a range of shared amenities and common spaces, the high turnover rate can sometimes make it tough to build a strong sense of community. Those living in this type of rental might not feel as motivated to invest in building relationships with their neighbors since people often move in and out more frequently than in traditional neighborhoods.

This lack of community engagement can be a downside for renters who value a strong sense of belonging and deep connections with their neighbors. The impersonal feel of some build-to-rent communities might not be for everyone, so it’s something important to think about when deciding if this type of living situation is right for you.

5. Build-to-rent communities tend to have more stringent rules

Living in a build-to-rent community often comes with a set of rules and restrictions that may not be present in an apartment building. These communities may have specific guidelines or policies related to renting with pets, noise levels, parking, and other aspects of daily life.

These rules are there to make sure the neighborhood is a nice place to live, but they can feel a little limiting to some renters. So, if you like having more freedom and not a lot of rules, living in this type of rental property might not be the right fit.

As the trend of build-to-rent communities continues to grow in the U.S., it is essential for renters to think of the pros and cons before deciding if this type of living arrangement is the right choice for them.

While most build-to-rent homes offer more space, upgraded amenities, and professional property management, they also come with some downsides. For example, you might not be able to personalize your place as much, the rent might be higher, and it might be harder to get to know your neighbors.

Ultimately, the decision to live in a build-to-rent community depends on what’s important to you, how much you can afford, and what kind of lifestyle you’re looking for.