Build to Rent – What is it really?
06 August 2019
There has been a lot spoken and speculated about the ‘Build to Rent’ market and whether this asset class will indeed ever make its way down under.
So what really is a ‘Build to Rent’ development and what makes it different to the current ‘Build to Sell’ market? And are the benefits different for tenants?
Build to Rent
‘Build to Rent’ in simple terms is a multi-unit development where there is a single owner holding the property for rental purposes. Although this may not seem like a new concept when compared to unit developments we have seen in the past, what sets this model apart is that these developments are much larger in scale, normally including 150+ units. As such, the ‘Build to Rent’ model targets institutional and private investors who truly understand what differentiates this asset class rather than individual or small investors.
Benefits for the tenant
Ultimately, the main differentiator for the ‘Build to Rent’ model can be summarised in one word – service.
Unlike the traditional design for a ‘Build to Sell’ apartment building that is tailored with the end homeowner or investor in mind, ‘Build to Rent’ is designed first and foremost for the renter. Most if not all ‘Build to Rent’ developments will have an on-site manager attending to maintenance of the building, common areas to bring in a sense of community and the latest in home technology. The purpose built developments have a real focus on customer service and experience, with a range of amenities available. Thus, making this asset class appealing for renters who are happy to sacrifice space in order to be closer to their workplace (or inner city) while embracing this sense of community.
Want to learn more about Build to Rent?
BDO’s Real Estate and Construction specialists are attuned to the shifting trends affecting the industry. Over the coming months, BDO will be providing a deep dive on the ‘Build to Rent’ model, unpacking the mystery behind the asset class.
If you would like to learn more, please contact a member of our team.