Build-to-Rent Calculator

Formula

The formula to calculate the estimated rent of build-to-rent is:

\[ R = (PC + BC) \times 0.01 \]

Where:

$R$ is the estimated rent of build-to-rent ($/month)
$PC$ is the total property cost ($)
$BC$ is the total build cost ($)

What is Build-to-Rent?

Build-to-Rent refers to properties that are specifically built for the purpose of renting them out rather than selling. This model allows developers to create communities designed with renters in mind, often including amenities and services that cater to long-term tenants.

Example Calculation

Let's assume the following values:

Total Property Cost (PC) = $200,000
Total Build Cost (BC) = $150,000

Using the formula:

\[ R = (200,000 + 150,000) \times 0.01 = 3,500 \, \text{\$/month} \]

The Estimated Rent is $3,500 per month.

Another example with different values:

Total Property Cost (PC) = $300,000
Total Build Cost (BC) = $200,000

Using the formula:

\[ R = (300,000 + 200,000) \times 0.01 = 5,000 \, \text{\$/month} \]

The Estimated Rent is $5,000 per month.