Although Build to Rent is comparatively a new concept, it has been in the real estate market for a couple of years now. BTR refers to developing properties that are meant for the sole intention of renting and not for long-term ownership.
The BTR concept was introduced in 2012 as part of the Olympic Games, following which many new rentals were developed based on the idea. Many of these even have backing from the government’s Home Building Fund.
How is Build to Rent properties different?
The Build to Rent concept has been increasing in popularity as the rental market, in general, has been becoming more popular. More people may be turning towards renting due to a lack of for-sale properties that are affordable or better-quality rentals. Increasing mortgage rates may also account for the change in preference.
Responding to the requirements in the property market, more developers are opting for BTR developments to cater to the lifestyle preferences of renters.
– These homes are being designed as per modern living standards.
– Some of them even exceed expectations provided the renter can afford the rents being asked for.
– Developers are trying to develop mini-communities, including communal areas for tenants to socialise and hang out.
– Other features include gyms, lounges, game rooms, and even a concierge in some properties.
What are the benefits of Build to Rent?
In providing a new standard of living, Build to Rent properties provide many benefits for tenants:
– They are available at various price points, thus catering to budgets of all kinds of letters and renters.
– These properties and resulting communities cater to all segments of people, from a young couple looking to start a family to a senior citizen looking for a peaceful space to retire and live in.
– Buying in prime city areas is expensive. BTR is a solution for this requirement with prime locations and close proximity to grocery stores, work, tube stations, nightlife etc., in addition to gorgeous city views.
– BTR management will be keen on retaining clientele, so any issues regarding maintenance and complaints will be attended to immediately.
-These are meant for long-term income. In order to retain the long-term interest of tenants and the community, developers will sustain top-quality public spaces and commercial spaces in and around the property to attract more occupants.
Can Build to Rent properties be sold?
As it’s a new segment, there is no clarity for now if these developments can be bought and sold. If they are a means of consistent rental income for investors, rules and regulations may be put forth, considering it as a separate segment in the real estate market.
However, planning authorities should bear in mind that build-to-rent developers would want a certain level of flexibility and time to respond to market conditions. Exit clauses that aren’t favourable will impede development. Also, affordable housing shouldn’t be at risk due to the sale of BTR properties.