Build to Rent
The concept of "Build to Rent" (BTR) has been gaining momentum in the real estate industry, particularly among developers seeking long-term investment opportunities and societal demands for greater opportunities for longer-term tenure provided to tenants while renting.
As the name suggests, BTR involves constructing residential properties specifically intended for rental purposes, rather than for sale. This model offers a unique set of challenges and opportunities, especially in terms of insurance.
In this article, we'll explore the essentials of Build to Rent - Residential Insurance and why it is crucial for developers and investors involved in this sector.
Understanding Build to Rent
What is Build to Rent?
Build to Rent (BTR) refers to residential properties that are specifically built for the purpose of being rented out, rather than sold. This model is particularly appealing to developers and investors who are interested in generating steady income through rental yields. The properties are often managed by professional companies that handle everything from maintenance to tenant management, ensuring a seamless living experience for renters.
The Rise of Build to Rent
The demand for rental properties has been on the rise, driven by various factors such as changing lifestyles, housing affordability issues, and the desire for flexible living arrangements. BTR developments cater to these needs by offering high-quality, well-maintained rental properties with amenities that appeal to modern renters, such as gyms, pool, tennis courts, cafes and other communal areas.
Government BTR Assistance
Governments realise to let this idea flourish; they need to reduce the barriers to entry and taxes they charge developers and major investors.
An example of this is the introduction of income tax concessions on 1 January 2025 to encourage investment and construction in the BTR Sector. Concessions for Land Tax have also been made available.
Insurance for Build to Rent
We can assist in arranging both the construction and operational coverages of a BTR property.
For the construction phase, we can discuss additional benefits which may suit your needs such as Delay in Start Up (DSU) which is a form of Business Interruption cover for the project.
Once your development then becomes operational, we can provide coverage for Building, Loss of Income arising from a range of circumstances and Liability exposure.
Business Insurance Specialists has a depth of knowledge and understanding as an expert provider of BTR Insurance and can assist you in obtaining the coverage required.