For Build-to-Rent (BTR) developers who build and manage multi-residence and multi-use properties, standard building insurance won’t provide adequate financial protection for your investment.
The inherent costs and risks involved in the development of purpose-built rental accommodation require a far more robust solution. This is where a Build-to-Rent Warranty from CIR comes in.
What is build to rent, and how does it work?
Build-to-Rent refers to developments specifically designed for renting, rather than selling. Unlike traditional converted properties, BTR apartments are built from the ground up with renters in mind.
BTR developments are typically owned by institutional investors like pension funds and managed by professional companies for the long term, unlike individual landlords who might flip properties.
BTR developments often boast higher quality finishes, modern amenities (like gyms, roof terraces, and co-working spaces), and longer leases compared to traditional rentals.
What are the responsibilities of Build-to-Rent landlords?
Build-to-Rent developers and investors, who are effectively BTR landlords, have a significant responsibility to ensure their developments are safe and well-maintained, including:
Compliance with regulations
BTR landlords are required to comply with all relevant building safety regulations, including fire safety standards, electrical safety, gas safety checks, and general maintenance of the building structure.
Preventative maintenance
BTR developments often prioritise preventative maintenance to avoid major issues and ensure resident safety. This might involve regular inspections of fire alarms, elevators, and building exteriors.
Dedicated maintenance staff or contractors
BTR developments may have in-house maintenance staff or contractors to handle repairs and maintenance requests that are reported by tenants through a designated channel.
Safety standards
While BTR landlords oversee property management companies, they are ultimately accountable for ensuring the building meets safety standards and receives proper maintenance.
The Building Safety Act 2022 establishes a new duty-holder regime, which assigns clear responsibilities for building safety throughout a building’s lifecycle – from design to occupation.
BTR landlords fall under this framework and must comply with its regulations.
What does a Build-to-Rent Warranty cover?
A Build-to-Rent Warranty (BtR Warranty) is specifically designed to protect developers and investors in Build-to-Rent projects against the financial risks associated with unexpected structural defects.
These are hidden flaws in the building structure that may not be apparent during construction but become evident later. The warranty covers the cost of repairing these defects for a set period, typically 10 years after the project’s completion.
What are the benefits of a Build-to-Rent Warranty?
A Build-to-Rent Warranty safeguards developers and investors from the expenses associated with repairing structural problems, reducing the ongoing risk and financial burden.
BtR warranties can also make the development more attractive to potential buyers later down the line as it demonstrates a commitment to quality construction and long-term value.
Why partner with CIR for your Build-to-Rent Warranty?
CIR offers tailored cover and expertise for the unique risks and challenges associated with BTR developments. We’re committed to transparency, ensuring you remain informed at every stage.
Our online portal provides Build-to-Rent developers with a comprehensive, user-friendly overview of their policies – from foundation to finish. This ultimately empowers the Build-to-Rent sector to make better-informed decisions.
We’ve been providing insurance solutions to the construction industry since 1986, and are one of the few Structural Warranty providers who are directly authorised by the Financial Conduct Authority.
Plus, we’re an Associate Member of UK Finance, placing us on an approved list of warranty providers that support banks, building societies, and funders with finance, funding, and mortgages.
For more information about CIR’s structural warranties, or to discuss your needs in more detail, please contact us today on 0800 059 0150.
