24 April, 2023 / Category: Blog
Build-to-rent (BTR) is a real estate concept that involves purpose-built apartment towers designed to be owned by one entity and leased out to renters for the long term. While the BTR model is more common in the US and Europe, it has recently gained popularity in Australia as institutional investors see value in its long-term rental income and capital gains. BTR projects have sprung up nationwide, particularly in Melbourne and Sydney.
In Australia, housing affordability and security are ongoing challenges. Rental costs in Melbourne have increased by an average of 20% in the last year. With net overseas migration expected to return to pre-pandemic levels in the next year, pressure on the rental market will continue.
The BTR model can help to address issues around lack of supply and rising prices by increasing the number of inner city apartments available for rent.
What are the benefits to renters?
In Australia, the BTR model promises high-quality, high-amenity, well-located, purpose-built rental apartments designed to cater for a vast range of needs. It’s a pretty enticing vision for the future of renting, providing a range of benefits to the renter.
Most rentals available on the market today are owned by mum-and-dad-type investors, so they are subject to changes in circumstances. In the case of BTR apartments, the entire building is owned by one entity as a long-term investment. Renters don’t need to stress about being evicted because the apartment is being sold or an owner is moving in. In some cases, build-to-rent apartments are available on longer lease terms, up to three years, providing renters with greater security over the future of their housing.
BTR Apartments usually have a corporate ownership structure, ensuring a commercial and consistent approach to rental management. They can respond efficiently to complaints, maintenance and cleaning requests.
Renters in BTR properties tend to have more flexibility with their living space because onsite property managers oversee the arrangements. Some allow you to upsize to bigger apartments when you start a new family or to downsize when your life changes and you need less space.
Build-to-rent properties are purpose-built to attract and retain good renters. The developers are incentivised to make it a great place to live and often offer premium amenities to achieve this. Communal amenities may include formal dining areas, rooftop spaces, gyms, yoga rooms, swimming pools or co-working spaces.
The community element of the BTR model is a big drawcard for renters as it allows them to stay as long as they want to, put down roots and make friends. As communal spaces and facilities are often available, this can also facilitate connections between renters.
Union Quarter Spotswood
Infolio is excited to project lease a build-to-rent development, Union Quarter, in Spotswood. We are leasing and providing the onsite management for The Hobson Apartments in the Union Quarter precinct.
Positioned in the heart of Spotswood, Union Quarter will have a thriving retail precinct including Woolworths, Dan Murphy’s, various casual dining options, childcare, a gym and a wellness centre. The Hobson Apartments are ideally positioned within this new precinct and feature views over Hobsons Bay and the city.
The Hobson Apartments are only 7km from the CBD, accessible via ferry, bike, train, car or on foot. Spotswood and the surrounding suburbs provide a vibrant life day to night, with easy access to Williamstown beach, cafes, restaurants and bars.
Subscribe to our newsletter to be the first to receive plans, pricing and launch dates.
Infolio’s project leasing capabilities
With a team of highly qualified property managers, Infolio has strong project leasing capabilities.
Our expertise is unrivalled in bringing build-to-rent developments to the rental market for the first time.
We believe that every development is unique, and that’s why our Project Leasing Team provides a personalised approach for every development. Whether it’s a small boutique development or a multi-level apartment tower, Infolio provides an end-to-end solution for your project. Our team will work closely with you to establish your project’s set-up, including your marketing strategy, leasing collateral, lead generation and nurturing, display suite set-up and leasing experience. Once renters move in, we will provide ongoing property management and community engagement, ensuring issues are resolved quickly and renters’ satisfaction is high.
Our approach to project leasing is backed by extensive market knowledge and expertise. Our team has an unparalleled track record for delivering exceptional value, service and returns to rental providers and renters.
Are you looking for a rental property? Contact us to discover The Hobson Apartments at Union Quarter or one of our other rental properties currently managed by Infolio.