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<h1 class="display-huge fw-bold border-bottom border-dark py-5" data-aos="fade-down">Navigating The
Built-to-rent Landscape: A Contractor's Perspective</h1>
<div data-aos="fade-right">
<img src="assets/Steven-Mah-72.webp" width="36" height="36"
class="img-fluid rounded-circle me-2 aos-init aos-animate" alt="Steven Mah" data-aos="fade">
<span class="text-muted small">by Steven Mah, 16 Oct. 2023, 7.03pm AEDT</span>
</div>
</div>
<div class="col-12 col-lg-10 offset-lg-1 col-xl-8 offset-xl-2 py-vh-2" data-aos="fade-up">
<p class="optimaltxt" id="1">In 2023, Victoria is facing a severe rental crisis, so much so that the then Victoria
Premier, Daniel
Andrews, released the Victorian government's housing statement, acknowledging and tackling some of these
root causes.
They call it 'Good decisions, made faster'; the government will take over the review of planning
applications for
developments valued at $50 million or more in Melbourne and $15 million or more in regional Victoria from
local
councils as long as there is a minimum of 10% affordable housing. It translates to around 13,200 new homes
that would
have otherwise never seen the light of day. It will reduce the application processing durations from over
twelve
months to just four. The Victorian government also specifically stated that this would include new
build-to-rent
projects. [<a class="link-secondary" href="#ref">1</a>]
</p>
<p class="optimaltxt">The above sets the backdrop for our exploration into Australia's evolving Built-to-rent
(BTR) landscape.
The BTR model emerges as a potential solution to address some of Victorians' housing challenges. By
delving into the
construction and design considerations inherent to BTR projects, this blog post aims to introduce what
makes a BTR
building different so that builders, contractors and developers can confidently tender and tackle these
trending jobs.
We will delve into the construction and design considerations that differentiate it from the conventional
Built-to-sell (BTS) model.
</p>
</div>
<div class="col-12 col-lg-10 offset-lg-1 col-xl-8 offset-xl-2 py-vh-2" data-aos="fade">
<h2>What is a Built-to-rent (BTR) apartment?</h2>
<p class="optimaltxt">A Built-to-rent (BTR) apartment is a residential development where a single entity owns all
units,
usually the project's developer, and is leased rather than sold. These developments provide a range of
amenities; the
best way to describe them is to imagine living long-term at a hotel. They have a professional management
team in place
to ensure proper building management. The BTR model is gaining traction as it offers a better housing
solution at
scale, aligning with the changing preferences of modern renters who value flexibility, convenience, and
community
living.
</p>
</div>
<div class="col-12 col-lg-11 col-xl-8 text-start" data-aos="fade">
<div class="py-vh-2">
<div class="blockquote-footer">
The best way to describe BTR:
</div>
<div class="blockquote blockquote-xl">
<p>"Imagine living long-term at a hotel"
</p>
</div>
</div>
</div>
<div class="col-12 col-lg-10 offset-lg-1 col-xl-8 offset-xl-2 py-vh-2" data-aos="fade">
<h2>Designing for Longevity</h2>
<p class="optimaltxt">The long-term nature of BTR apartments requires an engineering approach that <mark>emphasises
durability, efficiency, and ease of maintenance</mark>. Unlike BTS projects, where aesthetic appeal and a lower build cost
are keys,
BTR construction must produce a building that ensures a low cost of ownership over time.
</p>
<p class="optimaltxt">
The project developer will have to maintain the building forever until they decide to sell the entire
building down
the track, which means it is less likely that the developer will order the builder to cut corners during
the build
process. Sometimes, it is not uncommon for the developer to draw on their past building maintenance
experience and
include specific design requests in the building services specifications or the principal project
requirements
(PPR). Tier 1 developers may have an in-house design team well-versed in building services or at least a
close
external consulting partner. It is essential for all parties involved, including the building services
contractors,
to recognise this crucial difference during the tender process; the developer may very well knock back the
typical
design-and-construct (D&C) rationalisation.
</p>
</div>
<div class="col-12 col-lg-10 offset-lg-1 col-xl-8 offset-xl-2 py-vh-2" data-aos="fade">
<h2>Building a Sustainable Tower</h2>
<p class="optimaltxt">Sustainability is a defining feature of BTR developments. Incorporating energy-efficient
systems,
water-saving fixtures, and sustainable materials is not merely a nod to environmental responsibility but a
pragmatic
approach to reducing operational costs. Some examples of how the building design can incorporate this:
</p>
</div>
<div class="col-12 col-lg-10 offset-lg-1 col-xl-8 offset-xl-2 py-vh-2" data-aos="fade">
<h3>Variable Refrigerant Flow (VRF):</h3>
<p class="optimaltxt" id="2">Dividing a building into zones, each with set points based on usage, occupancy, and user preferences,
allows for tailored temperature control while optimising energy use. Unlike traditional systems that burn fossil
fuels, the all-electric VRF system circulates refrigerant between outdoor and indoor units; depending on the brand and
model, as many as 50 indoor units can be connected to just one outdoor unit to provide heating and cooling. VRF
technology offers a more sustainable heating and cooling solution by capturing and repurposing existing heat from the
environment, thereby reducing carbon emissions. In heating mode, the outdoor unit expands the refrigerant gas,
extracts thermal energy from the ambient air or water, and transfers it to indoor units. During cooling, indoor units
absorb and transfer heat from interior zones to outdoor units for rejection. This technology eliminates the need for
separate air conditioners and heating systems, making it a cost-effective solution. [<a class="link-secondary" href="#ref">2</a>]
</p>
</div>
<div class="col-12 col-lg-10 offset-lg-1 col-xl-8 offset-xl-2 py-vh-2" data-aos="fade">
<h3>Optimise Plant Sizing:</h3>
<p class="optimaltxt">Plant and equipment selection is vital in keeping the ongoing operation cost low. If the plants are
oversized, the electricity and, or gas costs can easily be overblown. The same goes for the maintenance cost of the
large plant. An example is the water booster pump set; the Australian Standard AS3500.1's method of calculating water
consumption was conceived many years ago, so the data is dated compared to today's actual usage statistics. <mark>Mindlessly
following AS3500.1's Deemed-to-satisfy method will result in a grossly oversized pump set</mark>, increasing the ongoing cost
for the building's owner.
</p>
</div>
<div class="d-xl-flex align-items-center">
<div class="col-12 col-lg-10 offset-lg-1 col-xl-4 py-vh-2" data-aos="fade">
<h3>Smart Metering:</h3>
<p class="optimaltxt">
Implementing an intelligent Building Management System (BMS) that integrates with various installed
meters will help the building manager monitor and optimise multiple operations based on real-time data,
leading to substantial energy savings. For example, plumbing contractors can install BMS-compatible
water meters to enable future building managers to monitor water consumption in different areas and
identify and promptly address any inefficiencies or leaks. Standard water meters can be integrated into
a BMS network by attaching an attachment like the Itron Cyble M-bus or Cyble 5 modules.
</p>
</div>
<div class="col-12 col-lg-11 offset-lg-1 col-xl-6 p-0" data-aos="fade">
<figure id="4">
<img src="assets/blog/blog2-1-itron-automatic-meter-reading.webp" height="407" loading="lazy"
class="img-fluid float-start rounded"
alt="flow chart showing how Itron Cyble modules integrate with the BMS of a building">
<figcaption class="blockquote-footer">How Itron Cyble modules integrate with BMS. [<a class="link-secondary" href="#ref">4</a>]</figcaption>
</figure>
</div>
</div>
<div class="col-12 col-lg-10 offset-lg-1 col-xl-8 offset-xl-2 py-vh-2" data-aos="fade">
<h3>Energy Recovery Ventilation (ERV):</h3>
<p class="optimaltxt" id="3">
Like us, buildings must also breathe fresh air, "markup air" in Mech term, and exhaust stale air.
Depending on the type of building, it may need more fresh air, and this is where the cost-benefit of
installing an ERV system shines. For example, typical hospital rooms require a baseline of 6 Air Changes
per Hour (ACH). [<a class="link-secondary" href="#ref">3</a>] If ventilation is not designed well, it could introduce unwanted heat or chill into
the internal space and make the air conditioners work harder to regulate. ERV systems capture and reuse
energy from exhaust air to pre-condition incoming air, reducing the energy required to heat or cool the
fresh air.
</p>
</div>
<div class="col-12 col-lg-10 offset-lg-1 col-xl-8 offset-xl-2 py-vh-2" data-aos="fade">
<h3>Fault Detection:</h3>
<p class="optimaltxt">
We live in an interconnected era where we can automate almost anything to a certain degree; in
construction, this is the Building Management System (BMS), which serves as a central hub of all critical
building systems. A vital feature of an intelligent BMS is its automated fault detection, remote
monitoring and control across HVAC, electrical systems or Hydraulic plants. Some examples include:
</p>
<p>
<ul class="optimaltxt">
<li>Hot water plant: The newer Rheem Tankpak Series 3 have 36 distinct fault points, including a blocked
filter warning.</li>
<li>Stormwater/sewer pumps usually have a common fault output, but the plumbing contractor can add
pump-well level sensors if more precise management is required.</li>
<li>Emergency lighting, which must be tested regularly as per AS2293.2, can be integrated into the BMS to
automate a large chunk of the test and save on labour costs.</li>
</ul>
</p>
</div>
<div class="col-12 col-lg-10 offset-lg-1 col-xl-8 offset-xl-2 py-vh-2" data-aos="fade">
<h2>Wrapping Up: The BTR Blueprint</h2>
<p class="optimaltxt" id="5">
The expedition into the BTR domain is more than a commercial venture; it's an effort towards redefining
urban living. The major players are already in it; Tim Gurner, who founded <mark>Gurner Group, raised $1.2
billion</mark> to attack BTR projects as early as 2021. [<a class="link-secondary" href="#ref">5</a>]
</p>
</div>
<div class="col-12 col-lg-10 offset-lg-1 col-xl-8 offset-xl-2 py-vh-2" data-aos="fade">
<p class="optimaltxt">
By offering a stable rental model, BTR apartments provide an attractive living solution for renters that
contributes to social cohesion at the same time. The emphasis on high-quality and sustainable construction
will lift the industry standards in Australia. The government's supportive stance and proactive engagement
of developers and investors herald a promising era for the Australian housing landscape. It is also the
hope of many that it could form part of the solutions to ease the ongoing rental crisis in Victoria.
</p>
</div>
<div id="ref"></div>
<div class="col-12 col-lg-10 offset-lg-1 col-xl-8 offset-xl-2 py-vh-3 text-references" data-aos="fade">
<h5 class="text-secondary">References</h5>
<p>
<ul class="text-secondary text-break">
<li>[<a class="link-secondary" href="#1">1</a>] Government of Victoria. "Victoria's Big Housing Build". Retrieved on October 9, 2023, from <a class="link-secondary" target="_blank" rel=“nofollow” href="https://www.vic.gov.au/housing-statement">https://www.vic.gov.au/housing-statement</a></li>
<li>[<a class="link-secondary" href="#2">2</a>] Mitsubishi Electric Trane HVAC US. "Variable Refrigerant Flow (VRF) Systems and Technology". Retrieved on October 11, 2023, from <a class="link-secondary" target="_blank" rel=“nofollow” href="https://www.mitsubishicomfort.com/articles/what-is-all-electric-vrf-technology">https://www.mitsubishicomfort.com/articles/what-is-all-electric-vrf-technology</a></li>
<li>[<a class="link-secondary" href="#3">3</a>] Department of Health, Victoria, Australia. "Ventilation | COVID-19 Infection Prevention and Control Guidelines." Retrieved on October 14, 2023, from <a class="link-secondary" target="_blank" rel=“nofollow” href="https://www.health.vic.gov.au/covid-19-infection-prevention-control-guidelines/ventilation">https://www.health.vic.gov.au/covid-19-infection-prevention-control-guidelines/ventilation</a></li>
<li>[<a class="link-secondary" href="#4">4</a>] Stream Measurement. "Itron Automatic Meter Reading Diagram." Retrieved on October 14, 2023, from <a class="link-secondary" target="_blank" rel=“nofollow” href="https://stream-measurement.com/jwfmedia/products/flow/natural-gas-flow-meters/itron-cyble/itron-automatic-meter-reading-diagram.jpg">https://stream-measurement.com/jwfmedia/products/flow/natural-gas-flow-meters/itron-cyble/itron-automatic-meter-reading-diagram.jpg</a></li>
<li>[<a class="link-secondary" href="#5">5</a>] The Urban Developer. "Gurner, Qualitas Raise $1.2bn Build-to-Rent War Chest". Retrieved on October 11, 2023, from <a class="link-secondary" target="_blank" rel=“nofollow” href="https://www.theurbandeveloper.com/articles/gurner-qualitas-raise-12bn-build-to-rent-war-chest">https://www.theurbandeveloper.com/articles/gurner-qualitas-raise-12bn-build-to-rent-war-chest</a></li>
<li>[<a class="link-secondary" href="#6">6</a>] Scott Carver. "Gladstone St, South Melbourne, VIC." Retrieved on October 15, 2023, from <a class="link-secondary" target="_blank" rel=“nofollow” href="https://www.scottcarver.com.au/our-projects/gladstone-st-south-melbourne-vic">https://www.scottcarver.com.au/our-projects/gladstone-st-south-melbourne-vic</a></li>
</ul>
</p>
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