What are the benefits of a build-to-rent structural warranty?

Are you a developer or contractor in charge of a construction project to house multiple tenants?

If so, you’ll benefit from obtaining a build-to-rent structural warranty from ABC+ Warranty.

This provides financial protection to ensure the project can be completed without major issues, but what exactly does it cover? And, who does it benefit? Continue reading to find out.

What is a build-to-rent structural warranty?

Unlike a standard structural warranty, which protects a homebuyer, a build-to-rent structural warranty protects the developers and investors against structural defects in the building.

In the case that the developer or investor decides to hold onto the property instead of selling it, it’s key to have a structural warranty in place. A property that’s built specifically for renting will have different costs and conditions to consider.

A build-to-rent structural warranty offers valuable financial security for massive investments into property construction projects.

What does a build-to-rent structural warranty cover?

Build-to-rent warranties cover latent structural defects for 10 to 12 years after the construction is registered as completed.

The first two years of the policy are known as the defects insurance period where the builder must fix any structural issues found. This point onwards, to the end of the 10 or 12-year coverage, is known as the structural insurance period. The warranty provider covers the costs of repairing structural defects following a successful claim, instead of the builder being held liable.

What are the benefits of a build-to-rent structural warranty for investors?

If you’re an investor and you’d like to get involved with a construction project, but you’re a little unsure, there are plenty of benefits to consider for projects covered by a build-to-rent warranty.

They are:

  • Non-London opportunities – Areas with excellent transport links, like Birmingham and Manchester, offer fantastic opportunities to invest. These major cities also have good land values and employment rates.
  • Long-term investment – Incoming rent combined with increasing house prices makes a build-to-rent scheme a non-volatile investment.
  • Faster market delivery – Modular rental developments can be placed on the market faster than homes for sale.
  • Smart technology – Property development is set to adopt digital infrastructure, and smart buildings are key to reducing energy consumption.

What are the benefits of a build-to-rent structural warranty for tenants?

While there are plenty of benefits for investors, a property with a build-to-rent structural warranty is also a positive for tenants.

Here’s how:

  • Larger demographics – The demographic for build-to-rent schemes is young professionals between the ages of 25 and 34. They can appeal to families, too.
  • High-quality facilities – Build-to-rent properties have a range of high-quality facilities that are regularly maintained, appealing to potential tenants looking for a well-maintained, modern home.
  • Everything in one place – A community-oriented design and plenty of amenities mean that residents can work, live, and relax all under one roof.
  • Flexible design – Build-to-rent properties can be designed to attract different types of tenants, from young workers to families.

Summary

As you can see, there are plenty of benefits to build-to-rent structural warranties for tenants, investors and developers.

There is a level of financial protection for developers, huge upsides for investors and tenants can live in well-maintained, modern buildings that are protected should any structural issues occur.

Check out ABC+ Warranty for a build-to-rent structural warranty.