What Is Build To Rent And How Does It Work?

Updated: Jul 17

Build to Rent (BTR, or sometimes even B2R) has been around for a few years now but, in the grand scheme of things, it’s still a relatively new concept in Malaysia. You may wonder What is Build to Rent and how does it work?

If you have, we’ve got you covered in today’s post. Here we’ll go over the basics and delve into topics such as the benefits of BTR, the stance on affordable housing, and whether or not BTR property can become part of the for-sale market in the future.

Before we get to those, let’s start with the term itself...

What is Build to Rent?

As you may expect, the term Build to Rent is rather self-explanatory: it’s a property development that is designed with the sole intention of appealing to the rental market as opposed to long-term home ownership.

Rental growth in the Malaysia

So, why Build to Rent? Well, a quick look at housing trends will give you an answer to that question, especially when looking at the market here in the city. Renting is on the rise.

There are several reasons for this, and you’re likely to get different opinions on why it’s the case depending on who you ask...and all will have some element of truth to them. From a changing attitude towards rented accommodation to a lack of affordable for-sale stock or the improved quality of lettings to transient workforces, all arguments for the increase in people renting hold some water.

Regardless of why it’s happening, the fact remains that it is happening, and developers are more than willing to construct purpose-built homes to meet the ever-growing demand.

How do Build to Rent developments differ?

Naturally, in order to appeal to a specific section of the property market (i.e. those who wish to rent rather than buy), developers are designing BTR sites to suit prospective renter’s lifestyles. 

Obviously, the homes themselves need to meet modern standards of living, and plenty actually exceed expectations if you’re willing and able to pay the rent they command, but BTR developments in many areas are going one step further than merely designing fantastic apartments.

Developers are now creating, or at least trying to create, mini communities within their developments by including features such as communal areas where people can hang out and socialise together. 

Such features include the obvious and not-so obvious, from gyms to lounges and games rooms to dining spaces. In fact, many BTR developments are actually closer to hotels than homes. Tenants will even have their own concierge in some!

What benefits are there to Build to Rent?

Our services are specially catered to homeowners and landlords who...

• have an empty unit

• have a tight budget

• worry of low rental income

• worry of damages and thieves

• have zero host connection

• have zero property listing experience

• don’t have the time

• hate hassles

• worry of irresponsible of contractors and property agents

Apart from providing solutions for the above issues, there are other benefits associated with BTR as well... and not just for the tenants. Local areas, too, can profit from these developments in a surprising number of ways.

Take the Octagon in Ipoh, for example. This development has regenerated an extremely rundown part of the building and brought with it a community and commercial space which will undoubtedly benefit the local economy.

Of course, there are people who are opposed to such large scale developments on their doorstep and there are a number of people who, quite rightly, state that this is no way to address the property crisis in the city. But, to say these projects are completely without merit is, frankly, ludicrous.

People deserve better quality homes and the long-term stability will be welcomed by renters who are tired of living under the threat of eviction through no fault of their own. The key problem with Build to Rent, though, is affordability. All of the good stuff mentioned above comes at a price, and that price is often above what many locals can afford to pay.

How does it work?

Where should I start?

If you’re looking for someone to take care of your rental property from A to Z in or around Malaysia, we can help find the perfect team for you. Give our team a call today to register your interest and we’ll handle the rest.

Contact us today

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