Managing Build to Rent Assets in an Emerging Market

Ever since the transformation of the former Gold Coast Commonwealth Games athletes’ village into an urban renewal project known as the Smith Collective, the build-to-rent property development model has gained momentum in Australia.

For developers, the build-to-rent model (BTR) — where units in a residential development are retained by the developer and leased out, rather than sold off—presents an exciting new frontier, with a wealth of opportunities.

But there’s a catch: developers keen to take advantage of this emerging marketplace need a keen understanding of the intricacies of this diverse new asset class, which can include social, affordable, multi-family and daily challenges within the sector.

To help navigate what may be uncharted waters for some, there are a raft of new software tools to assist with mobilising, managing and operating a successful build-to-rent development.

One such tool is MYBOS, a “one-stop-shop” software platform whose founder, former residential building manager Sam Khalef, became so frustrated by the lack of efficiencies within the residential sector that he decided to invent one himself.

“Basically the MYBOS software is a ‘one-stop-shop’ software platform designed to make the life of a building manager easier by integrating tenants, occupants, contractors and management in one platform,” Khalef said.

“It’s positioned in between a strata management system and a leasing platform and its core focus it to help operate and run the daily requirement of the property,” Khalef said.

Since its launch a decade ago, MYBOS—its name an acronym for My Building Operating System—has gone from strength to strength, and with the advent of the build-to-rent model, Khalef says he’s seeing increasing take-up from property developers looking to take advantage of the emerging new residential development sector.

“Developers who are moving into this sector are currently looking for software to manage projects in the build-to-rent space, as they have never really focused on the day-to-day running of operations before,” Khalef said.

MYBOS is essentially a toolkit so that developers can use to manage building-related issues from the point they’re commissioned, and throughout their lifetime—with innovative features such providing an innovative means of ensuring developers' brands remain alive with the building even after settlement is completed.

"We're also seeing interest from high-end, boutique developers taking advantage of the branding opportunities of our customisable app—features such as the lobby screen for communication with residents and the work order management system are great opportunities to help build your brand and decrease wear and tear on facilities such as lifts, which will pay off over the long term," Khalef said.

Boasting website testimonials from the likes of industry giants including Meriton, Lendlease, Brookfield and JLL, Khalef says that since the launch of the MYBOS facility management system 10 years ago, more than 350 global companies have come on board.

“The developers I’m speaking to may not have faced the complexities of what building managers need to go through, and are experiencing a lot of the same frustrations I felt when I first came up with this software, trying to deploy existing financial systems like NetSuite, Oracle or Xero to manage blocks of, say 200 or 300 apartments just don’t cut it,” Khalef said.

The MYBOS app offers a simple, modern approach for developers needing to capture diverse data sets, from pre-settlement certification, property defects lists and workflow management from start to finish, “without the spreadsheets and thousands of emails”.

“MYBOS can assist with all aspects of the build-to-rent process, from the front end—dealing with all the issues a building manager would be required for, to the back end—work orders and pre-settlement inspections and the like.

“In essence it has the potential to fulfil the role of a building manager, making use of the system’s ability to integrate every aspect of building management with key features including resident engagement; documents access; body corporate and caretaking responsibilities, and handling communication with owners, investors and agents,” Khalef said.

And it's cost-effective: “At an average cost of $2 per apartment per month, across 100 apartments for example, that’s $2,400 over a year—not a big expense, especially when you consider it’s a cost that can be borne by the body corporate, rather than the developer”.

Khalef says he’s seeing growing interest from high-end and boutique developers looking to harness the benefits offered by co-branded versions of the platform, which can ensure that the developer’s brand “remains alive with the building even after the settlement process is completed”.

Khalef says he feels for developers who may be struggling with trying to streamline a number of complex, separate systems, and is convinced they will see the light once they give the MYBOS software a try.

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