Built-to-Rent New Homes on the Rise

 

Jay's Notes: Because of the strong tenant demand for brand new homes in developments filled with owner-occupied homes, Where to Invest US has negotiated favorable deals with developers for our investors to meet this need.  In Charlotte, we are getting leads on tenants from developers for tenants that will lease homes about to be complete.  We have one home like this is Charlotte right now.  We are also able to include a rent-ready package that includes washer, dryer, refrigerator, blinds and garage door opener at no extra charge for our investors.  Email or call us to find out more about our special new construction year-end deals

 Built-to-Rent New Homes on the Rise

Thousands of single-family homes are being built to rent rather than sell, The New York Times reports. More home builders and investors see it as an income-generating investment at a time when the pool of first-time home buyers is shrinking.
The percentage of homes built specifically as rentals was 6.2 percent in 2012 — a record high, according to Census Bureau figures.
For example, in the Atlanta area, a five-bedroom, three-bathroom new home that may have sold for less than $200,000 can fetch $1,300 a month in rent.
“New homes still command a premium with renters,” the Times reports.
For investors, a new home can offer “fewer repairs, lower maintenance, and it looks great to the tenants,” says Bruce McNeilage, the managing partner of Kinloch Partners, a Nashville-based real estate investment company that has been acquiring model homes in the Atlanta area to turn into rentals. “You can get maximum rents, and people are going to stay in them for a while because they’re brand-new.”...

Source: “Home Buyers Are Scarce, So Renters Take Their Place,” The New York Times (Dec. 4, 2013)