There’s no denying that build to rent developments have become a rapidly emerging trend in living, serving as more than just a mere alternative for those looking for a temporary place of residence but rather a standard and viable fixture in the housing industry landscape. But what exactly makes the build to rent scheme so attractive to its developers, investors and tenants?
Advantages to tenants
Build to rent developments have become a feasible option more than just a temporary stopgap primarily because of the cost of living and the level of service provided to its tenants. Unlike regular housing units run by amateur and greenhorn landlords, build to rent developments are usually properly managed by professional companies such as Native Management Co, meaning efficiency in both the running of operations as well as the quick resolution of maintenance issues. Small as these things may be, they can go a long way toward increasing the quality of life for the tenants.
Affordability is another advantage that build to rent developments yield for its tenants. With the housing shortage continuing to force high costs and prices related to home ownership, very few today can actually find a property that they can afford to buy. Build to rent developments serve as a feasible solution to this crisis as a cost-effective option to those who can ill-afford to spend a small fortune on a more conventional and traditional home.
Advantages to developers and investors
Many investors and developers today are pouring in resources to build to rent development schemes. This is for good reason, of course: the market is perpetually growing. The versatility in their design allows the assets to be enhanced with minimal effort, from the addition of important amenities that may include food and beverage establishments, gyms and laundry services. While they may be small details, you’ll be surprised at how they can entice potential tenants to join the fold.
More importantly, the lack of a mortgage also makes them much more affordable which leads to the faster occupation of the units and a continuous flow of profit as a result. It’s this long-term investment approach that sets build to rent development schemes apart from the rest of the alternatives. It is, however, well-worth noting that the quality of the asset and its location will ultimately determine how successful the build to rent asset will be.
As a tenant, there’s hardly any reason to choose another living option than the build to rent development scheme. Not only are they much more affordable than other alternatives, but they are great value for money when you consider the level of service that they can provide. It’s also a very attractive prospect for both developers and investors alike. While the scheme may have existed for some time, the industry is still in its infancy, but with the current economic and housing landscape, it holds a huge potential for future profit for anyone willing to take a chance on it.