How an Owners Corporation Manager can assist with your Build to rent project

With more and more Developers turning their minds to the build-to-rent (BTR) model, the
question we keep getting asked is, ‘how can you help?

It might seem obvious that the need to appoint an Owners Corporation Manager (OCM) is
removed, given there will either be no Owners Corporation, or an Owners Corporation
owned entirely by one party, at the end of the project. However, bringing on the specialised
expertise of an OCM can help set your BTR project up for success, and ensure it continues to
run optimally, long after tenants have settled in.

Generally, an Owners Corporation Manager, or ‘Build to Rent Manager’ in these projects,

would act as the representative of the Owner, working alongside the appointed leasing
agent, property manager and/or building manager to ensure the building runs smoothly.

So, what are the key areas an OCM can provide support in? And why does it pay to appoint
an OCM to your Build to rent project?

Establishing a realistic budget

Setting a budget is arguably the most important step to determine the feasibility of your
project.

The budget will give you an idea of the costs of running and maintaining the property,
allowing you to accurately forecast the rent you will need to charge and set realistic
expectations for potential lessees.

With experience establishing and maintaining budgets for all building types, with all types of
facilities, a respected Owners Corporation Manager is your best resource to ensure budgets
cover all bases and set you up for success.

This is especially important in Build to rent projects, as there are no Owners to levy fees
from in instance of a shortfall, meaning you will bear the brunt of an inaccurate budget.
Reviewing your plans to promote a harmonious community

One of the key selling points of BTR projects is the ability for tenants to secure long-term
leases and build a home for themselves, despite not owning the property.

This is an obvious benefit for tenants, but equally valuable for the building owner who has a
secure income stream from that tenant.

Tenants will be encouraged to stay long term if they feel a sense of belonging in the
building, and a large part of this is the connections they form with their neighbours.

A feeling of isolation or on the worse end of the spectrum, feeling unsafe or unhappy within
a community may prompt tenants to look elsewhere, regardless of how great the facilities
are or how nice the apartment is.

To encourage these connections, careful consideration should be given to the plan; how
well it encourages casual interaction between tenants and how inviting or usable the shared
spaces will be.

Owners Corporation Managers have studied and interpreted hundreds of Plans of

Subdivision and can provide you with the expertise and advice to best set your project up
for a harmonious community.

Setting useful and enforceable rules for your project

Owners Corporations can get a bad rap for the way in which rules must be applied to
residents. But these rules are actually designed to promote safety, harmony and equality
within the property, acting as a deterrent to bad behaviour and providing a pathway out of
disputes.

Rules are just as crucial in a build to rent property, and arguably even more so; residents
who are unhappy within their community are more likely to move on, when compared with
their more ‘tied down’ counterparts in Build to sell projects.
Owners Corporation Managers have worked with hundreds of communities read through
countless rules and importantly, had exposure to the sorts of rules that can be difficult to
enforce and may end up causing more grievance than good.

Not all rules are written equal, and some, while well-intentioned, may not translate well
into the reality of living closely with your neighbours. Appointing an experienced Owners
Corporation Manager means you have oversight and input when selecting your rules,
meaning the thriving community you are envisioning has a better chance of coming to
fruition. Read More…