I have always heard that when a person gets rich he has to invest in real estate.
In fact, I know that some of the richest companies and entrepreneurs in the world are built on this idea.
But today I’m not talking about multimillion-dollar portfolios (the kind that caught them), but about a new trend in the real estate sector that you might find interesting.
Especially if you have money saved there and want to try.
His name is Build for rent and it seems to have come to stay.
What to buy for rent?
The literal translation of “Build for Rent” is «Build for rent», and I think there is a whole concept in this explanation.
It’s the kind of job to build new buildings that are 100% rented, not sold.
This is a very important detail because change the paradigm real estate investments the last few years.
The consequence of new trends, of course, is that leasing has prevailed over sales and where there are also many business opportunities.
When did Build to Rent come about and how did it become such a sought after opportunity?
Since 2019 there is huge growth in Spain and today it is one of the most interesting options for any investor.
It allows you to find opportunities in the real estate market that are saturated due to the rush of purchase prices and successive economic crises.
Something that the pandemic and coronavirus strengthened and that changed this game scenario forever.
How does Build To Rent work and why should you pay attention to it?
As I told you above, it is a form of construction that is characterized by the goal of orienting to rent from the first moment.
That is, houses or rooms that are developed are always prepared with this in mind, which makes a big difference when it comes to setting this scenario.
The developer builds the homes to deliver them to the investor (who financed the operation) and who is in charge of renting the property.
Some properties that will try to predict market trends in such a way that they can meet the current needs of potential tenants.
What are the benefits of Build To Rent for investors?
In the context of real estate in which the supply of rental apartments is much lower than the demand, many investors see an opportunity in this mechanism.
- Since these are turnkey projects and whose only destination is rent, they will meet your needs from the first moment.
- They include any needs that a tenant might need to move in at the moment.
- These are usually small apartments, but with complete common areas, which include laundries, gyms, storage areas …
As you can see, the goal is to provide the tenant with a pleasant experience from the first moment.
How is building rental management rented?
The main difference between rent management in Build to Rent and what anyone else can do is that it is professionalized process.
This means that exploitation is in the hands of companies, not individuals, as is common in the Spanish market.
The goal of these companies will always be to offer maximum benefits to the tenant to make them feel comfortable and not want to go to another property.
After all, you always have a long-term tenant goal to avoid constant tenant traffic and all that that may entail.
This is an evolution of the Build to Rent model
As you can imagine, the Build to Rent model is one that was originally born in the United States.
In that country, operators specialize in developing bids for specific segments. Luxury stands out the most.
In Spain, there is a constant demand for housing. Those who can afford to shop will advocate for it, but those who cannot will rent it.
And in a context where economic conditions are increasingly difficult, the rental option has grown exponentially in recent years.
Building numbers for rent in Spain
Stronger, especially after the complications left by COVID-19 in the real estate sector.
Spain is expected to build 90,180 rental homes from now until 2028, more than half of which will be located in Madrid to alleviate the life complications that have arisen in the capital.
In fact, by 2022, nearly 10,000 homes following this model are planned to be operational.
So, if you are looking for a moment to find an opportunity to live in the capital of Spain for rent, maybe this is the moment you have been waiting for.