High-income tenants are flooding the Build-to-Rent (BTR) sector and driving up demand for new amenities and design features. A large share of BTR tenants are professionals working from home, and in order to accommodate their day-to-day needs, new BTR designs offer multiple workspaces where a small desk can be placed.
On-site maintenance and a community are the 2 most popular BTR amenities, and demand for smart home tech is also on the rise, according to John Burns Real Estate Consulting. In order to minimize repair and maintenance (R&M) and turnover costs, BTR developers should keep carpet to a minimum and finish units with laminate faux wood flooring and stainless steel appliances.
- 1–2 apartment-like amenities (ex: pool, clubhouse, trail, etc.) is plenty.
- Better parking, privacy and a yard are 3 highly desired amenities. Adding too many other amenities will usually result in diminishing returns.
- On-site maintenance and a community are the 2 most popular amenities.
- Get ahead on technology.
- Demand for smart home tech is unprecedented; continue to monitor key themes within consumer trends and design. However, be mindful that some smart home technology may become standard features in the near-to-mid-term.
- Plan for future demand for the ability to charge electric vehicles in tenant garages but demand for such equipment is still negligible.
Responses