As the name implies, build to rent properties are designed and built so that they can be rented out after completion, instead of the usual building homes strictly for the purpose of selling. They are set up in such a way that it caters for the needs of those people who desire to rent an apartment for the long term instead of the usual six to twelve months short stay.
There is freedom on the part of the tenants to make the property even more conducive and homely than the private rentals.
Real estate developers who are involved in build to rent properties are typically larger and more specialized commercial property investment companies and are mostly financed by institutional investors.
Most often time, they are responsible for taking care of the tenants in the rented apartments.
The build to rent investment is attractive to many institutional investors because it holds the possibility of generating stable and long term returns for the investors.
The governments of NSW and Victoria have announced that they are supporting building and renovations investments, and also they are of the belief that it holds the possibility of providing affordable housing for Australians.
Most often times, we forget that about one-third of Australian families depend on rental housing to meet their housing needs, and this is whether by necessity or choice (according to the ABS data).
Consequently, a significant number of Australian households and families put their hope of accommodation on different properties made available by landlords for rent.
While the build to rent term may not be well known to many Australians, it is a very well established as well as a growing method of providing housing for citizens in other parts of the world, such as the US, Germany and even in the UK.
Build to rent is quickly becoming a global phenomenon and is being widely accepted globally, and it is bringing a change in the real estate industry we already know.
To make this work, Labor has announced that they are ensuring that there will be tax reforms, ensuring that tax laws will be made to help commercial property investment so that the experts in Build to rent investment will be motivated to invest in the build to rent properties. This will ensure it brings in a new way to offer affordable and quality rental properties.
Will Build to rent investment bring new possibilities?
Research by the Property Council of Australia has revealed that even while most tenants are somewhat satisfied in private tenancy or landlord, the build to rent homes will bring in more and different opportunities in terms of providing well-designed, managed and maintained rental housing to help meet the increasing needs of our growing population.
Being a tenant in a professionally managed property has obvious advantages.
These usually include facility managers and the on-site maintenance teams. And then, some properties may even provide a range of value-added services, such as concierges, sports, recreational and fitness facilities, and even common areas that tenants may use. Long-term leases particularly can offer more security.