A feasible alternative to traditional rentals is being missed by thousands of desperate tenants simpy because more than half of renters don’t know they exist.
Build-to-rent (BTR) schemes often offer tenants longer lease options, more security of tenure, private inspectios, higher-end amenities and rights similar to homeowners.
Yet new market research by REA Group revealed that not only were there many misconceptions about what BTR was, 55 per cent of Aussie renters revealed they didn’t know it was an option.
REA Group national sales director developer Candice Hickmott said these apartments are designed specifically for renting and are focused on providing high-quality, purpose-built rental homes.
“The BTR option is a lesser-known piece of the puzzle that can contribute to increasing Australia’s housing supply and help meet rental demand,” she said.
Build to rent offers an alternative to traditional rental where you can even avoid busy home inspections. Picture: NCA NewsWire / Flavio Brancaleone
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“Unlike traditional housing where investors may sell in response to market conditions, BTR properties remain in the rental pool long-term, ensuring a more stable supply of rental housing.”
While BTR is a fairly new form of housing for Australians, they are common in countries like the UK, Canada and the USA.
According to the research, some common misconceptions about BTR included thinking rental payments contributed to the mortgage or ownership of the property, that BTR leads to owning the property at the end of the lease, or that it was only social housing.
A BTR block purpose built only for renters.
While many renters were unaware of the option, once understanding the benefits, 70 per cent of renters were open to BTR, while 43 per cent considered the security with longer lease terms the biggest motivator to chose BTR over traditional rentals. The survey results were based on a survey of 750 renters.
This comes as new regulations have put in place for BTR, meaning tenancies will now be offered for a minimum of five years, with affordable tenancies defined to be available to people on moderate and low incomes.
Most build to rent buildings offer trendy amenities. The Gladstone BTR in Melbourne.
At least 20 per cent of the affordable tenancies will be available to low-income earners where rents are capped below 74.9 per cent of the market value or 30 per cent of household income, whichever is lower.
CHIA CEO Wendy Hayhurst said the legislation will unlock affordable rental accommodation urgently needed by lower income workers.
“This is a critically important initiative that will provide a pipeline of genuine affordable housing for households that have few other alternatives,” said CHIA CEO, Wendy Hayhurst.
“When done correctly, BTR provides tenants the sort of stability they badly need but can’t get because private ownership is out of their reach.”
Meadowbank BTR project apt. Meadowbank.
Property Council Chief Executive Mike Zorbas said the regulations will help unlock the largest Federal supply of rental homes this century.
“This is a welcome investment in 80,000 secure rental homes over the next decade,” Mr Zorbas said. “Of these, 8,000 will be affordable, with 1,200 ready to be rented in the near future. “This is the largest ever Federal effort to help relieve pressure on renters.
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