News

Balanced rental reform welcome; build-to-rent must be in the mix

The Property Council of Australia supports the intent of the Victorian Government’s rental reforms to be introduced to Parliament, but is calling for greater support for a build-to-rent asset class that will provide tenants with greater amenity and security of tenure.

Victorian Executive Director (Acting), Matthew Kandelaars said that it is important to protect good tenants who treat a property with respect.

“Good, long-term tenants are highly sought after by landlords but it is important that legislation is balanced between the rights of those tenants, and the rights of landlords to protect their homes and investments”, said Mr Kandelaars.

Along with changes to tenancy legislation, Mr Kandelaars said that changes to support a new at-scale build-to-rent asset class in Victoria are urgently needed to provide greater tenant amenity and security.

“The build-to-rent asset class has long-term tenancy at the heart of its business model. Instead of turning tenants over, build-to-rent investors would much prefer to see a tenant remain for 10 to 15 years,” said Mr Kandelaars.

The Property Council has been working with governments in Victoria and nationally to investigate this new asset class. The NSW Government has recently introduced a build-to-rent model and the Commonwealth Government has recently announced changes that are a step in the right direction.

“It’s important that the Victorian Government supports build-to-rent in Victoria in a meaningful way, to ensure Victorian renters aren’t left behind,” said Mr Kandelaars.

Source: Property C0uncil of Australia