The Hidden Engine Driving Build-to-Rent in 2025

When the Smiths moved into a brand‑new rental home last spring, they didn’t just discover fresh flooring or smart thermostats; they stepped into a lifestyle shaped by seamless utility management. They never saw a bill go astray, never gawked at confusing meter readings, and never spent time tracking paperwork. That’s not luck. That’s intention. And in 2025, managed utilities are one of the biggest factors separating thriving built-to-rent (BTR) operators from those struggling to keep costs in check.

The Build-to-Rent Boom: Why Everyone’s Paying Attention

The Build-to-rent wave isn’t slowing down. Families priced out of homeownership are still looking for space and stability, and investors see steady returns in professionally managed rental homes. That combination has fueled record-level development across the country.

In 2024, developers delivered nearly 40,000 new BTR homes, and another 60,000 are in the pipeline. Markets from Phoenix to Charlotte are seeing entire neighborhoods rise, complete with pools, dog parks, and fitness centers. These aren’t scattered single family rentals. They’re communities intentionally designed with shared amenities, professional maintenance, and consistent management.

Why Utilities Are the Elephant in the Room

BTR comes with advantages, but also with a very real set of operational challenges. Homes are larger than apartments, which means higher baseline costs. A vacant 2,000-square-foot home can use twice the energy of an empty multifamily unit. Multiply that across dozens or hundreds of properties, and the expense line starts to balloon.

Utility costs are also climbing. In the first quarter of 2025, operating expenses rose more than three percent year-over-year, outpacing rent growth. For BTR operators, ignoring utilities is no longer an option.

Handled the right way, utilities shift from being a headache to being a competitive advantage. That’s where managed services come in.

• Expense management that stops waste before it starts. One in seven utility bills contains an error. Conservice audits, processes, and pays bills on time, reducing late fees and eliminating unnecessary charges.
• Transparent resident billing. Expense recovery ensures operators bill back accurately and consistently, with built-in legal support for compliance.
• Smarter meter management. From installing and tracking meters to ensuring regulatory compliance, Conservice takes a complex process and makes it seamless.
• Data that drives action. Analytics uncover inefficiencies, support sustainability goals, and help operators budget more accurately.
• Simplified vendor contracts. With dozens of vendors across multiple communities, contract management keeps renewals, insurance, and compliance under control.

The result is a streamlined utility program that protects NOI while making life easier for residents and staff alike.

The Utility Landscape in 2025: What Operators Need to Know

It isn’t just BTR that’s changing. The utility sector itself is shifting. Providers are investing in grid modernization, AI tools, and resilience planning to keep up with growing demand and climate-related pressures. Customers are expecting more transparency and faster service, even as rates continue to rise.

For operators, that means utilities can no longer be treated as a background function. They affect costs, compliance, and resident satisfaction. Partnering with a utility management provider is less about outsourcing and more about building resilience into the portfolio.

What Conservice Brings to BTR Operators

Managing utilities across dozens of homes and communities requires a different level of oversight. Conservice brings that scale and specialization to the table.

• Portfolio-wide visibility. Centralized reporting provides insight into costs, usage patterns, and opportunities for savings.
• Scalable systems. Whether managing 50 homes or 5,000, automation ensures processes don’t break under growth.
• Compliance expertise. Utility regulations vary by state and municipality. Conservice helps operators stay ahead of the rules.
• Improved resident experience. Clear bills and faster resolution build trust with residents, supporting higher retention and occupancy.

With these tools, operators don’t just control costs. They elevate the performance and value of their entire portfolio.

Powering the Future of BTR

Build-to-rent has established itself as a core part of the housing market, and its trajectory in 2025 shows no sign of slowing. But growth brings complexity, and utilities are one of the most significant factors shaping both costs and resident experience.

By putting utility management at the center of the strategy, operators can turn a common challenge into a lasting advantage. The communities that succeed will be the ones that make utility management invisible for residents, effortless for staff, and impactful for investors.

Ready to see how Conservice can help your BTR portfolio run smarter? Connect with us today.

Lauren Bevilacqua

Lauren is the Content Marketing Manager at Conservice. She is an avid reader, fitness enthusiast, Dolly Parton fan, and will never turn down chips and salsa.