Written by David Dodge  

The build-to-rent (BTR) market is reshaping the housing industry, offering real estate agents, brokers, and professionals a unique opportunity to expand their business, forge new client relationships, and tap into an innovative housing trend. Whether you’re seeking to diversify your income through rental commissions, guide investors toward profitable opportunities, or collaborate with developers on cutting-edge projects, the BTR sector is brimming with potential. This guide explores the rise of BTR, its benefits for investors and developers, how real estate professionals can profit, and strategies to overcome challenges while staying ahead in this growing market.

What Is Build-to-Rent and Why Is It Booming?

Build-to-rent refers to residential communities designed and constructed specifically for long-term rentals rather than individual homeownership. Unlike traditional rental properties, BTR communities are purpose-built with renters in mind, offering modern amenities like private yards, spacious garages, high-speed internet, and professional property management. These features make BTR homes appealing to a wide range of renters, from young professionals and families to retirees seeking low-maintenance lifestyles.

The BTR model is gaining momentum due to shifting economic and lifestyle trends. Many individuals and families, including millennials priced out of homeownership, Gen Z renters entering the market, and downsizing retirees, prefer the flexibility of renting over the financial commitment of a mortgage. BTR offers a middle ground: the comfort and privacy of a single-family home without the long-term obligations of ownership. According to a 2025 Fixr report, BTR home starts have surged by 134% since 2019, with significant growth in Sunbelt cities like Phoenix, Dallas, Atlanta, and Charlotte. As investor interest spreads across the country, BTR is becoming a national phenomenon, creating opportunities for real estate professionals in both urban and suburban markets.

Why Investors and Developers Are Betting on BTR

Benefits for Investors

For investors, BTR offers a compelling combination of stability and growth potential. Key advantages include:

• Predictable Income: BTR communities generate steady rental income, providing a reliable cash flow compared to the volatility of traditional real estate sales.
• Long-Term Appreciation: As property values rise, investors can benefit from both rental revenue and potential capital gains.
• Portfolio Diversification: BTR allows investors to diversify beyond traditional homeownership models, reducing risk in fluctuating markets.

Benefits for Developers

Developers are drawn to BTR for its cost efficiencies and scalability. Building multiple units within a single community offers:

• Economies of Scale: Shared infrastructure, such as utilities and landscaping, reduces per-unit construction and maintenance costs.
• Streamlined Management: Professional property management firms handle leasing, maintenance, and tenant relations, simplifying operations.
• Incentive Programs: Many cities offer financial incentives to encourage BTR development. For example, Medford, Oregon’s Housing Opportunity Fund provides direct funding to lower development costs, while the Multiple Unit Property Tax Exemption (MUPTE) offers up to 10 years of tax relief for qualifying projects. Similarly, Austin’s SMART Housing program waives permitting and inspection fees, saving developers significant upfront costs.

These incentives make BTR projects more financially viable, allowing developers to offer competitive rental rates. Lower costs mean they don’t need to charge premium rents to recover expenses, which benefits tenants and enhances investor returns.

How Real Estate Professionals Can Thrive in the BTR Market

The BTR model opens multiple revenue streams for real estate professionals, from earning commissions to building long-term client relationships. Here’s how you can capitalize on this trend:

1. Earn Rental Commissions

While BTR transactions differ from traditional home sales, they offer unique earning opportunities:

• Referral Fees: Some developers, like AMH in Phoenix, partner with agents to fill new BTR communities quickly, offering referral fees for qualified tenants.
• Leasing Commissions: Agents can earn commissions for securing tenants for new units, typically a flat fee or a percentage of one month’s rent.
• Recurring Income: In rare cases, agents may receive bonuses for lease renewals or ongoing management referrals, creating a steady income stream.

2. Diversify Your Income

BTR allows agents to expand beyond traditional home sales:

• Investor Partnerships: Work with investors to acquire or develop BTR properties, earning fees for acquisitions or advisory services.
• Property Conversions: Advise homeowners on converting new builds into rental properties, tapping into the growing demand for rentals.
• Developer Relationships: Partner with developers for early access to leasing opportunities or new inventory, positioning yourself as a go-to expert.

3. Build Long-Term Client Relationships

Helping clients navigate the BTR market can lead to repeat business:

• Investor Loyalty: Assisting investors with BTR projects opens doors to future acquisitions, leasing referrals, or exit strategies.
• Renter-to-Buyer Pipeline: Tenants in BTR communities may eventually transition to homeownership, creating opportunities for future sales.
• Developer Networks: Strong relationships with developers can provide exclusive access to new projects, enhancing your market presence.

Challenges and How to Overcome Them

While BTR offers significant opportunities, it comes with challenges that require strategic planning:

1. Lower or One-Time Commissions

Rental commissions are often smaller than sales commissions, typically a flat fee or a portion of one month’s rent. Renewal bonuses are not always available. Solution: Focus on volume by building a pipeline of renter clients and leveraging multiple BTR projects to accumulate commissions over time.

2. Developer Restrictions

Some developers work exclusively with preferred brokers or require agents to register tenants early. If tenants connect directly with owners or listing sites, agents may lose commissions. Solution: Proactively build relationships with developers, property managers, and onsite staff to stay informed about opportunities and secure your role in the leasing process.

3. Limited Access and Control

BTR listings may not appear on your local MLS, and onsite staff often handle showings and leasing, limiting your involvement. Solution: Stay in regular contact with onsite teams for real-time vacancy updates and cultivate developer relationships to gain insights into upcoming projects.

4. Not a Fit for All Clients

BTR may not align with clients focused on building equity through homeownership. Investors may also face zoning restrictions, longer ROI timelines, or market saturation risks. Solution: Educate clients on BTR’s benefits and limitations, and target those who value flexibility or long-term investment potential.

Strategies to Stay Ahead in the BTR Market

To succeed in the BTR space, real estate professionals must adapt to its unique dynamics and position themselves as experts. Here are actionable strategies:

1. Expand Your Network

Build relationships with a diverse group of stakeholders:

• Developers and Investors: Collaborate to identify and develop BTR opportunities.
• Architects and Urban Planners: Gain insights into project design and feasibility.
• Property Managers: Partner for leasing opportunities and tenant management insights.

2. Stay Informed

Develop a deep understanding of BTR’s financial models, regulatory environment, and valuation differences compared to traditional sales. Familiarize yourself with tenant relations and local incentive programs to provide comprehensive advice.

3. Embrace Creative BTR Projects

Investors are increasingly converting non-traditional properties, such as old hotels, schools, or factories, into BTR communities. These projects leverage existing infrastructure for cost savings and offer unique amenities like ample parking or communal spaces. Stay open to these innovative developments to attract forward-thinking clients.

4. Market Your Expertise

Position yourself as a BTR specialist by:

• Educating Clients: Share insights on BTR trends, benefits, and local opportunities.
• Leveraging Technology: Use social media and digital marketing to highlight your BTR expertise and attract investors and renters.
• Offering Tailored Services: Provide end-to-end guidance, from property selection to tenant placement, to stand out in a competitive market.

The Future of BTR

The BTR market is poised for continued growth, driven by demand for flexible housing and innovative development models. As urban and suburban markets evolve, BTR will play a central role in addressing housing shortages and meeting diverse lifestyle needs. Real estate professionals who embrace this trend can bridge the gap between investors, developers, and renters, shaping the future of housing in their communities.

By understanding BTR’s nuances, building strategic partnerships, and staying ahead of market trends, you can unlock new revenue streams, strengthen client relationships, and establish yourself as a leader in this dynamic sector. The build-to-rent revolution is here—now is the time to seize its potential.