01 high demand

• Single-Family Rentals (SFRs): With occupancy rates ranging from 92% to 96%, SFRs attract long-term tenants such as families and professionals seeking space, privacy, and proximity to schools and amenities.

• Build-to-Rent Communities (BTR): Designed to meet the growing demand for quality rental housing, BTR communities often maintain occupancy rates of 95% or higher, thanks to their appeal to renters seeking a single-family living experience.

02 retention

• Tenants in SFRs and BTR homes stay longer, with retention rates of 70-80%, compared to 50-60% in traditional apartments. This stability reduces turnover costs and increases cash flow consistency.

• Longer tenancy is driven by the desirable features of these properties, such as more space, private yards, and proximity to suburban amenities.

03 lower cost

• BTR and SFR properties benefit from fewer turnovers, saving investors significant costs associated with unit preparation, marketing, and tenant placement.

• For example, SFRs experience vacancies only once every 3-5 years on average, compared to apartments that often turn over tenants annually.

TAX ADVANTAGES OF SFR & BTR INVESTMENTS

Investing in Single-Family Rentals (SFRs) and Build-to-Rent (BTR) properties offers significant tax benefits that can enhance your overall return on investment. One of the most impactful advantages is cost segregation, which allows investors to accelerate depreciation on specific components of the property, such as appliances, landscaping, and interior fixtures. This strategy can lead to substantial tax savings, as up to 20-30% of the property’s value can be depreciated in the first few years. For instance, on a $300,000 property, investors could potentially realize over $30,000 in tax savings within the first year.

Additionally, depreciation deductions allow investors to defer taxes on rental income, further improving cash flow while reducing taxable income. These savings can be reinvested to scale your portfolio faster or strengthen your financial position. Combined with other potential real estate deductions—such as mortgage interest, maintenance costs, and property taxes—SFR and BTR investments can provide significant tax advantages compared to other asset classes.

START YOUR JOURNEY WITH AMRR!

Whether you're a seasoned investor or exploring Build-to-Rent for the first time, AMRR Property Management is here to guide you through every step. Contact us today to learn more about the benefits of BTR investments and how we can help you succeed.