Do you want to get into the landlord industry as a small property owner? Are you looking to expand your real estate inventory? While most potential landlords look for existing homes that fit their needs for a rental property, you may want to consider another route: constructing a build-to-rent property. Why? Here are a few situations where it could be your best bet.
1. When Inventory Is Low
If you've been looking at possible rentals in a tight market, you may soon run out of inventory to choose from. Rather than put off the purchase or settle for a house that's less than ideal, why not design and construct your own?
2. When You Can Get More Money
Experienced landlords know that maximizing the rental price potential is key to turning a profit. But not every property can net you a high rental income. If you know what's holding down your income potential, design a rental that will meet those challenges and bring in more money. If your only options are two-bedroom homes, but potential tenants desire three bedrooms, for instance, you can set yourself apart.
3. When You Have Long-Term Tenants
Building a custom home for potential tenants is tricky because you have to balance profit with investment and you don't know exactly what they want. However, what if you do know who will live in it for a long time? Do you plan to rent to a grandparent or provide a starter home for adult children? Maybe you have long-term tenants with a great history and want to cater to them. Whatever the situation, this is a time to design with them in mind.
4. When You Remodel Anyway
Tight real estate markets often mean settling for a rental property that needs a lot of renovation work. At some point, landlords in this situation should calculate the difference between gutting an existing home (and facing potential surprise expenses) and simply building it right from the ground up. You may find that an efficient new build is comparable.
5. When You'll Eventually Move In
Finally, could you use this property as your own primary home at some point? It may be a backup plan or perhaps it is your retirement goal. In this case, you're building your rental not simply for strangers to lease but for you and your family to live in. Customize the design to balance these two goals.
Where to Start
Ready to learn more about building a custom home with rental purposes in mind? Start by meeting with a custom home builder in your area today.
Share9 September 2022
When I moved into my current place, I was concerned about the size of my master bedroom. I was worried this small space wouldn’t fit my bedroom furniture. Unfortunately, I was correct. After sleeping in this bedroom for eleven years, I decided to make a huge change. I consulted with a reputable, remodeling contractor. I hired this professional to build a huge, master bedroom addition onto my home. I decided to turn my small bedroom into a comfortable guest room. On this blog, I hope you will discover how a remodeling contractor can improve the function of your home. Enjoy!
