High-income tenants are flooding the Build-to-Rent (B2R) sector and driving up demand for new amenities and design features. A large share of B2R tenants are professionals working from home, and in order to accommodate their day-to-day needs, new B2R designs offer multiple workspaces where a small desk can be placed.
On-site maintenance and a community are the two most popular B2R 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, B2R 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.