by Cindy Huber

The term Build-to-Rent has become one of the hottest terms in the new home construction industry and one that is not going away soon.  At a recent conference in Nashville, TN, our Eastern Division Vice President, Cindy Huber visited with the industries movers and shakers who are moving at warp speed to keep up with this growing demand from builders and investors alike.  

The terms, Build-to-Rent (BTR), Single-Family Rental (SFR) and Single-Family-Built-to-Rent (SFBR) commonly refer to a business model where detached or attached single-family homes are built to either hold by the builder or sell to investors for the purpose of long- term rental income properties. The nationwide trend addresses market conditions created by circumstances ranging from the lingering effects of the global financial crisis to the COVID-19 pandemic, as well as the shifting priorities and desires of consumers. 

Factors driving the trend: 

  • Steadily growing percentage of renters (according to the Pew Research Center, more U.S. households are renting than at any point in 50 years) 
  • Lack of affordable housing options 
  • Backlogs and delays in building materials and labor shortages 
  • Housing supply shortages due to lagging effects of the 2008 financial crisis
  • Affordability and attainability 
  • Meets demand for larger, more flexible spaces for live, work, and play 
  • Lower builder overhead cost and higher return on investment 

In addition to addressing the factors described above, builders can provide features normally out-of-reach for renters such as luxury amenities, state-of-the-art technologies, healthy, low-maintenance homes in neighborhoods that offer a sense of place and community. It’s easy to see why this investment model could very well become the new norm.  

Whether building and holding single-family build-to-rent communities or building for investors, offering a 10-year, insurance-backed, Major Structural Defect warranty is a good business decision that gives builders and investors a competitive edge on their portfolio in a growing competitive market. 

“Having a warranty in place protects the builder and/or future investment owners from unforeseen and potentially expensive construction defects and possible litigation issues with an ‘All Inclusive Arbitration Clause’,” said Huber.   StrucSure Home Warranty provides builders and investors with the financially strongest protection for investment properties by transferring risk to a third-party backed by A-rated Lloyd’s of London, the oldest and largest reinsurance market in the world.   

Why Choose StrucSure Home Warranty as Your Build-to-Rent Progam Warranty Partner:

  • Make your offering to investors more attractive by including a 10-year, fully transferable warranty against Major Structural Defects 
  • Assign your risk to a third-party, insurance-backed, warranty company 
  • Avoid costly investigation fees for suspected structural or construction defect issues 
  • Avoid costly repairs on covered Major Structural Defects from the roof to the foundation 
  • Avoid costly litigation with an “all inclusive” mandatory arbitration clause 
  • Attractively position your portfolio for favorable or reduced Umbrella, General Liability and Builder Risk polices fees  
  • Customizable warranty programs to fit your business model’s short- or long-term investment plans  
  • Investor-specific warranty program coverage booklets and marketing collateral as well as on-line access to warranty coverages  

To learn more about how to protect your risk today with our investor-specific Single Family Rental/Build-to-Rent warranty coverage programs,
contact Cindy Huber, Vice President of Sales, Eastern Division, at 770.363.7823 or chuber@strucsure.com.