Furniture as a Service and Build-to-Rent: The Future of Flexible and Sustainable Furniture in Real Estate

Furniture as a Service and Build-to-Rent: Opportunities, Challenges and the Future in Real Estate

The transformation of residential models is not only technological but also cultural and economic. In recent years, I have accompanied several investors and operators in analyzing Build-to-Rent (BTR) and Furniture-as-a-Service (FaaS) models, and the change is profound. The rise of renting, the professionalization of management, and the search for flexibility have driven concepts previously marginal in the circular economy, design, and user experience. Today, we analyze how these trends converge to reshape the real estate and furniture market in 2025 and beyond.

1. What is Furniture as a Service (FaaS) and why is the industry talking about it

Is FaaS just furniture rental by the month? The short answer: no. Furniture as a Service (FaaS) goes much further. It integrates a circular approach that involves renting, returning, refurbishing, and reusing furniture, extending its lifespan and minimizing waste. Under this model, both owners and users access quality furniture, use it only for the necessary time, and can return, upgrade, or renew the plan as the space evolves or needs change.Royal Ahrend in Europe and CORT in the U.S., for example, employ full chains of refurbishing and reuse supported by the so-called '5R Process': Rent, Return, Repeat, Refurbish, Repurpose, which directly link to the principles of the circular economy. This approach aligns with the growing appetite for flexibility, reducing environmental impact (lower CO₂ footprint and less waste generation) and professionalization of rental and commercial spaces, especially in America and Europe.

Source: WorkDesign - FaaS and Circularity

2. Build-to-Rent (BTR): From traditional rental to managed communities

The Build-to-Rent model has revolutionized renting: it refers to entire developments designed and managed for long-term rental rather than sale. It institutionalizes management, profiles high-standard services, modern amenities, and flexible contracts. In the last three years, institutional investment in BTR has exploded:

• $18.5B in private capital directed to BTR funds in North America and Europe between 2021 and 2024 (CBRE, 2024).
• Growing participation of family offices and insurers attracted by profitability and low vacancy rates.
• BTR shows net operating income (NOI) margins up to 15-20% higher than conventional multifamily according to JLL Capital Markets, 2024.

But there is more beneath this: what distinguishes many successful projects is the “interior experience package,” where furniture management, decoration, upgrades, and renewal become key value propositions for users.

See BTR insights and statistics at Beekin

3. Why do FaaS and BTR feed off each other? The strategic connection

The useful life of buildings and furniture is no longer linear until “they run out.” The combination of managed residences and furniture as-a-service creates a flexible, personalized, and low-carbon ecosystem:

• BTR operator centralizes management, reduces furniture ownership costs, standardizes image, and streamlines upgrades or maintenance.
• The owner/user accesses only the furniture required for the desired time, without depreciation expenses or moving logistics.
• All parties can report a smaller environmental footprint (Scope 3), aligning with ESG requirements and tenants’/companies’ responsible preferences.

In projects where we integrate both models, tenant churn decreases and the perceived value of professionally decorated space increases up to 12% in average monthly rent (own data, 2024).

4. Market data: Exponential growth and profitability

How much does this weigh in dollars and global trend? Some key indicators:

1. The Furniture Rental Service segment in North America expects annual growth rates exceeding 12% through 2027 (IMARC Group, 2025).
2. FaaS is perceived as a risk mitigator in flexible offices and homes, allowing scaling up or down of space and equipment without penalties.
3. End users value package customization options, delivery/installation service, and guarantees of hygiene/refurbishment, even above base price.

See IMARC business plan, profitability, and projections

North American market statistics

5. What are today's BTR users and residents looking for?

Current residents, especially Millennials and Gen Z, prioritize flexibility, time, and design. From a panel with BTR residents carried out this year by SpaceFlow, several trends emerge:

• Flexible lease contracts (periods under one year possible for BTR).
• Furniture packages and upgrade choices that allow personalizing and modernizing the space.
• Technology integration for managing common services, delivery, customer service, and predictive maintenance (including furniture upgrades).

See BTR resident survey

6. Benefits and challenges for real estate companies, investors, and designers

For real estate companies and operators:

• Lower initial capex (a large part of furniture is paid as OPEX).
• Ability to offer aesthetic or functional upgrades as an extra service or upsell.
• Reduction of losses and breakages, since quality management is constant and predictable.

For designers, interior decorators, and manufacturers:

• Incentive to develop modular, repairable furniture lines that are easy to refurbish.
• Opportunity to monetize design as a subscription through upgrade packs, refresh consulting, and comprehensive service.
• Greater volumes and stable demand planning for more efficient and predictable production.

And challenges?

Among the main challenges I have encountered are:

• Maintaining quality and design in each refurbishment cycle.
• Managing reverse logistics (pick up, storage, quick refurbishment).
• Communicating real sustainability, avoiding greenwashing, and showing impact data and circular footprint.

Not everything can be solved with apps; post-sale service and manual protocols are critical (and a huge opportunity for those who do it best).

7. Near future: AI integration, personalization, and circular economy

Soon we will see the integration of AI and platforms like Deptho to accelerate designing furniture packs, analyze photographic set performance for listings, and even recommend personalized upgrades based on demographics, user life cycle, and trends. Data will drive decisions on which furniture to refurbish, when to launch bundles with higher turnover, and how to manage circular logistics to minimize emissions and costs. On Deptho’s blog, you can find examples of how AI and digital twins are already transforming the global real estate experience.

Read more about digital twins in this related article

8. Action checklist for those who want to implement FaaS+BTR

1. Analyze your inventory and furniture life cycle: is it adaptable to refurbishment?
2. Evaluate local demand for flexible furniture packages, adjust the offer by segment and profile.
3. Partner with designers, manufacturers, or platforms that allow quick personalization and efficient logistics.
4. Introduce online visualization and virtual staging tools to speed up customer decision-making and reduce uncertainty.
5. Develop ESG metrics and circular footprint reports to differentiate your offer before tenants and investment funds.

In my experience, the best functioning of both models is in urban markets with high turnover, seasonal events (expats, digital nomads, corporate capitals), and professionally managed developments offering additional services (cleaning, upgrades, personalization).

9. What new opportunities does this approach open?

• Developers can capture new continuous income sources through upgrade services or personalized furniture packs.
• Furniture companies gain access to extended usage cycles and long-term direct relationships with operators and end-users.
• Real estate agents can differentiate themselves with permanent professional staging, showing real and lively spaces at every visit.
• Tenants and companies enjoy greater well-being and flexibility, focusing capital on mobility, business, and experiences.
• Interior design becomes a recurrent, updated process, with agile response to trends and preferences.

In summary, FaaS and BTR open paths for a less speculative and more user-, experience-, and circular economy-oriented industry.

10. Conclusions and next wave of innovation

Furniture as a Service and Build-to-Rent are setting the course for residential real estate, design, and furniture. More flexibility, greater efficiency, a smaller environmental footprint, and—above all—the possibility of always putting the person at the center. The challenge for professionals is to be active participants in this change: creating custom, measurable, and scalable products, services, and spaces. The next step? The integration of generative AI, collaborative platforms, and instant visualization will be the engine of the innovation and personalization cycle for all stakeholders.

If you want to dive deeper into how to accelerate the visual design of spaces and furniture at the commercial or architectural stage, explore the tools of Fill Room and Redesign by Deptho.ai, designed to speed up personalization and creative visualization. The future is collaborative and the time to experiment is now.