Leaving the headaches and hassles of homeownership behind is a key driver for residents who move to build-to-rent communities and place heavy emphasis on the quality of their professional property maintenance.

The data is part of a 2023 survey for the New Home Trends Institute, part of John Burns Research & Consulting, which Redwood participated in along with several others in the industry. It includes results from more than 6,000 build-to-rent tenants nationwide. This is the third in a series of pieces detailing those findings.

“From our beginnings, we’ve prioritized on-site maintenance and professional management just as much as residents do,” said Steve Kimmelman, CEO and Founder at Redwood.

“We know that people do business with people, and the quality of management and maintenance services can be a differentiator for build-to-rent communities.”

In fact, maintenance-free living is the No. 1 reason why tenants prefer to rent. Fifty-six percent of survey respondents said they did not want the maintenance responsibility of homeownership.

“Even more than living in a newly built home, residents say they value on-site maintenance and professional management,” Kimmelman said. “It far eclipses any other reason for renting.”

The second and third most common reasons for renting include not wanting the financial responsibilities of homeownership and having the flexibility to move as needed or desired. Both drew 37 percent of respondents.

Timing for buying, including interest rates, other financial priorities, a recent relocation, temporary living situation or life transition rounded out reasons for moving to build-to-rent communities. But maintenance-free living by far was the bigger driver.

As one resident responded in the survey: “Homeownership maintenance became burdensome. [We] moved closer to our doctors and hospital. Renting gives us freedom to travel.”

“People discover build-to-rent communities at all life stages,” said Kimmelman.

“No matter what your life situation, we all find ourselves with increasingly more obligations, less time and often less capacity or interest in juggling the demands of homeownership,” he added. “The right approach to property management and maintenance takes that off our residents’ shoulders and gives them back more of their time to spend as they choose.”

It’s also a distinguishing factor from other rental options, such as renting a single-family home.

“[I selected my home because] my yard is low maintenance and I can call [the] office to have repairs done if needed,” one build-to-rent resident said in the survey.

Eighty-one percent of respondents said on-site maintenance was very or somewhat important, and 68 percent said management by a professional rental company was very or somewhat important.

“Just like the apartment homes themselves, quality maintenance and management are significant to residents,” said Kimmelman. “It validates our decision to invest in exceptional talent to support our Redwood Neighborhoods. Residents build strong bonds with our team members, and they are a key factor in strong retention.”

Findings from the New Home Trends Institute Survey also indicated that build-to-rent tenants often have higher incomes and have previously owned a home. Redwood dives deeper into those topics here. 

Additionally, the survey revealed that build-to-rent tenants are often new residents to their states and will rent homes with the intent to get to know an area before ultimately moving to an owner-occupied property. Redwood details that data here.

For those looking to learn more and explore investment opportunities in the BTR sector, fill out the contact form to get connected with a member of Redwood’s investor relations team.