Are you familiar with purpose-built rentals? If this is the first time you heard about it, don’t worry because it might soon be a buzzword in the real estate industry in the following years.
Purpose-built rentals are three or more structures offered for lease, specially built for long-term rental accommodation. They are not the same with apartments which you can rent on a monthly basis or a condominium which you can rent only for a certain period. Private corporations usually initiate these structures.
Since the ‘90s, purpose-built rentals had been stagnant—without new developments, with the same earnings and contribution to the economy. However, with high-interest rates and increased preference in renting nowadays, it seems like purpose-built rental is already entering its prime years. In certain areas, some strategies have been applied in these developments. Below are some of the factors expected to help the industry thrive.
What do purpose-built rentals need in order to boom?
- Consistency in Operations
In Canada, an association of housing rental providers called LandlordBC, came up with a quality assurance program that will help prospective renters evaluate rental properties. Referred to as the Certified Rental Building (CRB) program, it provides a set of standards rental properties have to follow. Their compliance is being assessed by a third-party auditor.
If there is a way for renters to ensure quality services in rental properties, won’t it encourage more people to say yes to purpose-built rentals?
Aside from the quality of services, another priority of renters when choosing a place is their safety and security. Setting a stringent screening process for all tenants and building a community among residents may give renters the assurance that the rental property is secured.
Renters need to be assured that no one will suddenly knock on their door, asking them to leave because their property has been suddenly taken off the market. In case the property is located in a probable redevelopment area, the developer shall give the renters benefits and assistance, making sure that they won’t be homeless.
As time goes by, simply offering people a place to live won’t be enough for them. Prospective renters will surely look for something more than a bedroom, a living room, and a bathroom. Developers may consider adding other services, such as pet stations, community spaces, and vehicle stations.
With constant developments in the construction and real estate industry, developers should be alert and up-to-date with the current trends. As the preference for renting continues to rise, the competition also increases and without adapting to the latest trends in the industry, it might be difficult to give prospective renters exceptional living conditions in the rental property.
For the purpose-built rental housing industry to continue thriving, it is most important to consider what prospective renters need and want. With high preference on renting and constantly low vacancy rates, the number of prospective renters is not the problem; the only thing developers have to do is to keep them.