What is typically referred to as the 'ramp-up period' for BTR assets?

The 'ramp-up period' for Build-to-Rent (BTR) assets is specifically defined as the time it takes to achieve stabilization in occupancy levels. This phase is critical as it reflects the period following the completion of construction and the start of leasing operations. During the ramp-up period, the property transitions from being newly completed to fully occupied, which often involves marketing the units, attracting tenants, and ensuring steady occupancy rates are achieved.

Achieving stabilization typically means that a significant percentage of the units, often around 90-95%, have been leased, and the property is generating consistent rental income. This timeframe is essential for financial forecasting and planning, as it impacts cash flow and the return on investment for stakeholders. The successful navigation of the ramp-up period is crucial for the long-term success of BTR assets, influencing everything from operational strategies to financing terms.