Rental guarantor service Housing Hand has discovered that Build to Rent investors are showing a growing interest and appetite for fully operational schemes.
In August, property consultancy Savills reported that around 20% of investment in the Build to Rent sector between 2018 and 2023 was in fully let, operational developments.
The firm expects that figure to increase to 25% between 2024 and 2028, and to 30% during the four years to 2033.
Housing Hand states that the key to attracting investment and delivering healthy returns is stability. Therefore, it is important for operators to lease up and achieve that stability as fast as possible.
“The Build to Rent model is proven. Appetite from renters for high-quality homes with on-site amenities is strong and sustained, while development and operational costs leave scope for healthy profits. It’s a model that suits all parties, from investors through to end customers – the students and working professionals who live in these homes.
“Now, it’s time to build at scale to meet investor demand for completed schemes. That includes getting the payment of rent arrears in better order and aligned to leading practice.
“Delivering fully operational Build to Rent schemes that appeal to investors means ensuring that every element of the scheme runs efficiently.
“Ensuring that rental income flows as it should, and that any void properties can be let as fast as possible, are key to assuring investors that a scheme is operating smoothly.”
Graham Hayward, Managing Director, Housing Hand
Housing Hand provides an insurance-backed service where rent continues to be paid to the operator, even if the tenant defaults. The service helps to eliminate the time-consuming losses traditionally resulting from managing defaults and chasing tenants for late payments.
The cost of rent arrears collection normally exceeds the cost of a quality and compliant guarantee. As part of its services, Housing Hand completes efficient identity checks that meet stringent regulatory requirements.
“We provide cost-effective operational efficiencies. Debt recovery companies charge ten to 15% of the debt for their services and can take months to deliver.
“Using our efficiency model instead, Build to Rent operators simply email Housing Hand when a renter defaults, trusting in our record of 100% payout on all valid claims.”
James Maguire, Head of Sales and Marketing, Housing Hand
