Build-to-rent could offer institutional investors a stable asset class and fill a substantial gap in the country’s housing stock.
As one of Melbourne’s leading specialists in the rental segment, Rent Exchange has been invited to and relied upon at large conferences to consult with developers and investors on how to make the build-to-rent model most profitable in Australia.
Advice given surrounded, but was not limited to:
– Design/floor plan,
– Development amenities,
– Cost Benefit Analysis for apartment size/quality/yield,
– Segmentation of the market to appeal to likely tenants.
As the appointed managers for several inner-suburb developments throughout Darebin and the City of Yarra, Rent Exchange’s existing expertise has proved to be vital in building this segment and helping this model take large steps in the Australian market.
What is build-to-rent?
Build-to-rent refers to a residential development in which all of the units are retained by an owner or developer and leased out, as opposed to being sold off to multiple owners as per the traditional build-to-sell model. The developer owns and manages the units as long-term income generating assets, typically benefiting from economies of scale when it comes to maintenance, repairs and other general upkeep.
As Australia continues to urbanise and inner-city land values increase, owning a house can suddenly become a more distant dream for many. Confronted with this reality, there is a new generation prepared to rent for longer in order to continue to access the lifestyle, location and amenity-rich environment that they are attracted to, and that build-to-rent can provide.