5 things to know about build-to-rent

With build-to-rent properties taking off in Australia, an elevated lifestyle is now available for the rental market.

When a brand-new property is built and designed specifically to be rented out rather than sold, it is known as ‘build-to-rent’.

Starting in the United Kingdom in about 2016, this new model has enjoyed take up in some of the world’s most dynamic cities, including London and New York. The trend is still in its early days in Australia, so no doubt many people will have some questions.

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Here’s the lowdown on why build-to-rent properties are reinventing renting.

1. Offers security

Typically, one of the main benefits of buying a home is that it gives you the security that you’re there to stay and can put down roots. Renting has not previously been able to offer the same stability.

But with build-to-rent properties, a tenant can effectively stay as long as they want — whether that’s one year or 10.

This makes it much easier to make long-term plans, according to Anne Flaherty, economist at realestate.com.au.

“You don’t have to worry about the landlord wanting to move back in or putting it up for sale or serving a notice on you because they want to renovate” Flaherty explains.

“You can choose to live there for years without the chance that something out of your control changes that situation.”

2. Tenants have ownership-style freedoms 

One of the main differences from traditional rentals is that build-to-rent tenants are afforded far greater liberty to make their apartments feel like home.

Christian Grahame, Head of Home, says build-to-rent gives people more agency over their home.

“The build-to-rent model suits anyone who is looking for more flexibility and choice than a regular lease,” Grahame explains. “Our residents can bring their pets, paint the walls, or whatever else they need to put their roots down.”

Build-to-rent means not worrying about hanging up your own pictures.

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3. Amazing amenity and services

Hotel-style services and high-end design are another big draw card in this new asset class. 

Grahame says Home, as the developer and owner of Home Southbank, has made a significant investment in the build, prioritising lifestyle features for residents.

At Home Southbank, there’s a stunning 18-metre luxury pool, world class gym, state-of the-art working hub featuring high-speed internet service, Tesla car share facilities powered by Origin 360 EV for exclusive use by the residents — the first initiative of its kind within a build-to-rent apartment community.

Meanwhile, Melbourne institution Au79 are onboard as operators of the lobby café and soon to be open luxe wine bar, The Green Room.

Level 59 commands sweeping 360-degree views of the Melbourne CBD, the bay and beyond, ideally suited to entertaining friends or quiet, reflective moments surrounded by curated art from established and emerging Australian designers.

“We also offer amenities and community experiences that you can’t get through traditional renting, as well as optional add on services,” Grahame adds.

4. Total convenience

If you hate the hassle of dealing with real estate agents, then build-to-rent is definitely the way to go.

“Our residents won’t be dealing with a body corporate, external building manager or property managers to have items fixed,” Grahame confirms.

“Home provides a one-stop-shop for all renting and building matters with a dedicated Home app to complement the extensive resident services team onsite.”

Even the rental process is streamlined, so people don’t have to mess around with inspections or forms — they just sign up and move in.

CAPTION: Home also has upcoming residences in Melbourne and Sydney.

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5. It frees up your money

The saying was once ‘rent money is dead money’ — but not so for savvy investors. Many young and established professionals see huge value in using their saved funds to generate wealth on the share market, in bonds or investing in their own business.

For these people locking up tens of thousands of dollars for a home deposit is not appealing.

The perfect solution is having a build-rent-property where tenants can get all the perks of a home, but keep the lion’s share of their funds free for other wealth creation ventures.

If you want to check out build-to-rent for yourself, book a Home at Southbank tour.

Pictures are courtesy of Home Southbank.