Typically, what is the Opex as a percentage of gross rent for BTR properties?

The typical operating expenses (Opex) for Build-to-Rent (BTR) properties are often in the range of 30-40% of gross rent. This percentage reflects the costs associated with managing and maintaining multi-family residential units, which can include items such as property management fees, maintenance, utilities, and other operational costs.

For BTR properties, the expenses can be higher compared to other residential property types due to the scale often involved and the range of amenities provided. As these properties focus on delivering a high-quality living experience, the operational costs can reflect that commitment, resulting in a larger proportion of gross rent being allocated toward Opex.

Alternatives that suggest lower percentages, such as 20-30% or 10-20%, might apply to different property types or scenarios with significantly lower operational demands, but BTR properties typically incur higher costs due to their unique management and operational needs. The higher percentage signifies the complexities and service levels expected by residents in BTR developments. On the other hand, the choice of 40-50% would typically indicate an unusually high level of operating expenses, which is not the norm for BTR properties and may reflect extreme cases rather than a general trend.