What is Build to Rent?
Build to Rent is a residential development model where purpose-built housing is constructed specifically for long-term rental rather than sale.
Owned and managed by a single entity – often an institutional investor – these developments provide tenants with quality accommodation and stable lease terms, while offering developers a consistent income stream.
This model is growing rapidly in Australia due to its potential to address housing shortages, improve rental affordability, and deliver professionally managed housing options in key metropolitan areas.
What are the benefits?
What are the benefits?
- Steady rental yields with long-term revenue potential
- Operational efficiency through single-ownership models
- High tenant retention and reduced vacancy risk
Build to Rent also allows investors to create branded, community-focused living environments that respond to the growing demand for quality rental housing.
For tenants:- Long-term lease security
- On-site management for responsive service
- Modern amenities including gyms, communal areas, and co-working spaces
Build to Rent legislation in Australia
Build to Rent legislation in Australia
Build to Rent legislation is still developing in Australia, with various states introducing tailored measures to support the sector.
While there is no unified national law, multiple jurisdictions are recognising the value of Build to Rent and adjusting their frameworks accordingly:
- Victoria and New South Wales offer land tax discounts and planning reforms to stimulate Build to Rent developments
- Queensland is trialling pilot programs with private sector Build to Rent partners to boost affordable housing supply
- Federally, Build to Rent has been acknowledged as a key strategy to improve housing supply and diversify the residential market
As Build to Rent legislation evolves, developers must stay informed on local regulatory requirements and tax eligibility criteria to maximise benefits.
Build to Rent tax concessions
Build to Rent tax concessions
Several Build to Rent tax concessions are now available to encourage large-scale investment in the sector:
- Accelerated capital works deductions: Developers can now claim 4% per annum on capital works, up from the standard 2.5%, for eligible Build to Rent projects held for at least 10 years
- Managed Investment Trust (MIT) tax reduction: For eligible Build to Rent projects starting construction after 9 May 2023, the MIT withholding tax rate is reduced from 30% to 15%, incentivising foreign investment in Build to Rent housing
- State land tax incentives: States including NSW and Victoria are offering additional land tax reductions for Build to Rent projects that meet specific criteria
These Build to Rent tax concessions significantly improve project feasibility and long-term return on investment, especially when combined with strategic depreciation planning.
The role of Build to Rent in Australia
The role of Build to Rent in Australia
With rising urban populations and growing rental demand, the Build to Rent model is helping meet Australia's housing needs. These developments deliver high-quality, professionally managed rental stock at scale, which can support tenant affordability, urban density goals, and broader housing reform.
Build to Rent is also being applied to niche segments such as student housing, senior living, and key worker accommodation – expanding its relevance in Australia's future housing mix.
How BMT can help
How BMT can help
At BMT, we support Build to Rent developers with expert tax depreciation solutions tailored to this evolving model. Our specialist team understands the requirements of Build to Rent legislation, asset classification, and tax incentive eligibility.
We can assist by providing:
- Free Build to Rent depreciation estimates for feasibility
- Detailed depreciation schedules to optimise deductions
- Portfolio-wide depreciation strategy for developers with multiple sites
With deep industry knowledge and proven results, BMT ensures you’re making the most of your Build to Rent investment.
Why developers should request a depreciation estimate
Why developers should request a depreciation estimate
A depreciation estimate is an essential tool in assessing the financial feasibility of your Build to Rent project. It offers critical insight into the likely tax deductions available over the life of the development – before a single brick is laid.
Here’s why developers should request one early in the planning process:
1. Improve feasibility calculations
A depreciation estimate allows you to accurately factor in tax savings when calculating ROI and project viability. For large-scale Build to Rent developments, depreciation can result in hundreds of thousands of dollars in annual deductions.
2. Identify opportunities for greater returns
By understanding which elements of your design and fit-out qualify for plant and equipment depreciation, you can make informed decisions during the construction phase to maximise long-term tax benefits.
3. Ensure legislative alignment
With Build to Rent tax concessions and evolving Build to Rent legislation, getting an estimate from a specialist provider like BMT ensures you're aligning your project with all relevant eligibility criteria like minimum tenancy lengths and ownership periods.
4. No obligation, high value
Requesting a depreciation estimate from BMT is obligation-free and provides significant value early in your development lifecycle. It’s a strategic step that helps you maximise after-tax cash flow from day one.
Get your free Build to Rent depreciation estimate
Get your free Build to Rent depreciation estimate
Planning a Build to Rent project?
Let BMT provide a no-obligation depreciation estimate to support your feasibility or funding process.
Our Depreciation Estimates:
- Provide a preliminary assessment of potential tax depreciation deductions that can be claimed
- Can be completed at any stage, including before construction commences
- Can be completed for the full range of design types within the development
Fill out the form and our expert team will be in touch.