Build-to-Rent & Single-Family Rental

Rental Property Cost Segregation

Build-to-rent communities and single-family rentals depreciate over 27.5 years by default — but appliances, flooring, cabinetry, and site improvements don't have to. Reclassify them into 5- and 15-year property for a large first-year deduction across your whole portfolio.

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Build-to-rent community of single-family rental homes eligible for accelerated depreciation

$4,000–$14,000

About 80% cheaper than the $40K–$70K a traditional engineering firm charges for the same IRS-compliant result.

Delivered in days

AI-assisted engineering returns an audit-ready study in days — ideal for BTR portfolios closing in batches.

IRS-compliant

Built to the IRS Cost Segregation Audit Techniques Guide, with full asset detail and supporting documentation.

Why rentals benefit from cost segregation

Residential rentals use a 27.5-year recovery period — faster than commercial's 39 years, but still slow. A cost segregation study peels the short-life components out of that schedule: appliances, carpet and LVP, cabinetry, and dedicated electrical become 5-year property, while driveways, fencing, and landscaping become 15-year land improvements. For build-to-rent operators the effect compounds across every unit, and bonus depreciation under IRC §168(k) front-loads the deduction.

Rental assetReclassified to
Appliances (range, fridge, washer/dryer)5-year
Carpet, vinyl & LVP flooring5-year
Cabinetry & millwork5-year
Window treatments & blinds5-year
Dedicated appliance & specialty electrical5-year
Driveways, walkways & fencing15-year
Landscaping & site improvements15-year

Rental property cost segregation FAQ

How much does cost segregation cost for a rental property?

Our build-to-rent and single-family rental studies run $4,000–$14,000 — about 80% less than the $40,000–$70,000 a traditional engineering firm charges — and are returned in days, not weeks.

Does cost segregation work on residential rentals depreciated over 27.5 years?

Yes. Residential rentals use a 27.5-year recovery period, but appliances, carpet and vinyl flooring, cabinetry, window treatments, and dedicated electrical typically reclassify to 5-year property, while driveways, fencing, and landscaping move to 15-year land improvements.

How much can a build-to-rent community reclassify?

BTR communities benefit from portfolio-scale site work and repeated unit finishes; it is common to move 20–30% of the depreciable basis into 5- and 15-year property across the community.

How long does it take?

Upload your closing statement, construction or unit-cost docs, and photos, and most rental studies are delivered in a matter of days.

Ready to accelerate your rental depreciation?

Get an IRS-compliant study in days for a fraction of traditional cost — one property or a whole BTR portfolio.

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Disclaimer: The information provided on this platform is for general informational purposes only and does not constitute tax, financial, legal, or investment advice. Cost segregation studies and depreciation benefits vary based on property type, ownership structure, and applicable federal and state tax law. Results are estimates only. You should consult a qualified tax professional, CPA, or attorney before making any tax-related decisions. ClickDrag Finance does not guarantee specific tax outcomes.