29 Oct Build to Rent is great for tenants
If you follow the property news pages you will read stories about Build to Rent (BTR).
For decades in Australia apartment buildings have been Built to Sell (BTS) which is where all the apartments are sold by the developer to individuals but with BTR the developer owns and operates the entire apartment building.
The change in market dynamics has meant several developers are now constructing BTR apartment buildings enabling one owner to control everything that goes on in that building. That one owner has a strong vested interest to look after all the tenants, and sets all the building rules such as if they will use AirBnB or not. No more owners corporation (formerly body corporate) committee or 20 different property managers acting for 50 or 100 different owners.
This form of apartment ownership and operation has been prevalent in more developed apartment markets like US and Europe for decades. In fact BTR, or multi family as it is called in the US, is a huge part of their institutional property investment sector along with office buildings, shopping centers and industrial property.
Tax laws and lending practices have made BTR less attractive commercially in Australia, but the opportunity to provide a hotel style service to tenants who will live there for years is compelling.
Imagine as a tenant having one person to talk to about everything in your apartment building. One place to discuss connecting to the central wi-fi, saving a car park spot for a friend visiting from the country, booking a spot in the yoga class or co-work space, getting the handyman to pop up and install your new washing machine, connecting to the apartment book club, or putting your name down for a larger apartment when it comes up if your planning a family.
BTR is coming, and if executed well, it will provide a level of tenant service never seen before in Australia making leasing easier to do for life, and less of a stepping stone to owning.