Property bosses and government join forces to treat renters as ‘customers’

TENANTS would be treated like customers and spend decades in the same home under a scheme being hatched by property bosses and the state government.

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PROPERTY bosses are joining forces with the state government in a bid to stop “renting” from being a dirty word.

The moves would lead to tenants being treated more like customers and give them the option to spend decades living in the same home.

With Sydney’s affordability crisis creating more lifetime renters, NSW Treasurer Dominic Perrottet is making renting a major part of the state’s housing affordability plan.

Rosie Baker would enjoy renting more if she had certainty about her ability to stay in her property in the longer term. Picture: Toby Zerna

He is investigating options to introduce “build to rent” properties in Sydney.

Popular in the US and the UK, the scheme involves one institutional landlord owning an entire apartment building for the purpose of renting.

The scheme is being billed as a potential game-changer as institutional landlords give tenants more perks and build long-term relationships.

Mr Perrottet, who has started two working groups with industry leaders to explore introducing build-to-rent, told The Daily Telegraph he wanted to make renting a more attractive option.

“There is an enormous untapped potential to explore different approaches to open up the rental market, particularly focusing on assisting young people,” he said.

Property bosses want to stop “renting” being seen as a dirty word or poor life choice.

“Build to rent is a concept that has been successfully implemented in Europe and the US, and there is no reason why it can’t make up part of the property sector in NSW.

“This makes renting an attractive option, and long-term renting presents distinct challenges in the areas of affordability and certainty.”

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The Daily Telegraph understands property groups, including Stockland and Mirvac, are investigating creating build-to-rent properties.

Greystar, the biggest build-to-rent provider in the US, is also hunting for Australian sites.

NSW Property Council chief executive Jane Fitzgerald said it could be revolutionary.

“Introducing institutional landlords who professionally rent could see the death of the tenant, where (instead of being treated as tenants) renters are treated as customers,” she said.

PricewaterhouseCoopers partner Amy Brown said Sydney had to stop thinking of renting as a “dirty word”.

Ms Brown authored a PwC report that investigated options for introducing build to rent in Australia.

It recommended state and federal governments explore planning and tax incentives for the developments. Ms Brown also said the government should investigate law changes to protect tenant rights.

“Eviction without cause is a real problem,” she said.

Home is a sense of security

Rosie Baker reckons being a tenant doesn’t have to be a bad thing if the rental property can feel like home.

Ms Baker, who rents in Redfern, is one of a growing number of people ruling out buying in Sydney because of soaring house prices.

“I don’t think renting needs to be a bad option … but if you have uncertainty about whether you’ll be able to stay in a property for longer than 12 months it can be hard for it to feel like home,” the 33-year-old said.

“I would be interested in build-to-rent because of that long-term certainty.”

Belinda Sharp has been lucky enough to rent the same property in The Rocks for 20 years. Picture: Troy Snook

Belinda Sharpe and her husband have rented the same property in The Rocks for 20 years.

“We’ve been really lucky and had a good experience,” she said.

Ms Sharpe said moves to allow tenants to have better certainty about how long they could be in their rentals were a great idea.