Hindsight is 20/20, and this is exactly what data provides us with – perfect vision. Data allows us to analyze and evaluate situations in the past, allowing us to establish baselines, find faults and set better strategies. Today, data is changing and improving the way we work to bring about development. This is why every sector in the economy integrates data collection to drive continuous improvement.
However, the property and construction sector has historically been slow in incorporating data collection. As data integration and property tech is a relatively new idea, with few buildings and contractors maximising its use.
To drive the property and construction sector into effective data integration, the Build to Rent industry remains the perfect vehicle to reach this goal. Due to the long-term nature of BTR investments, their success is dependent on how efficiently they’re constructed and then later, operated. However, this cannot be achieved successfully without adequate data collection, identifying points where operational expenditure can be reduced.
To improve operational efficiency, read below for the three key data points to reduce operational expenditure.
Energy Efficiency
Understanding how a building uses energy is fundamental to achieving maximum energy efficiency. As, it identifies additional options on improving energy consumption through accurate data collection. Without data on a building’s energy consumption, one would be unaware of the percentage of energy wasted, the rate of wastage, and the areas prone to wastage.
According to ENERGY STAR, on average, 30 percent of the energy consumed in commercial buildings is wasted annually. Further to the negative impact on the environment, an annual 30 percent waste in energy consumption is a massive waste of operational expenses that would cause a significant difference in revenue.
Energy efficiency is the best way to eliminate waste, reduce carbon emissions, and save money.
So, what equipment or systems can be used to monitor, measure, and evaluate a building’s energy consumption? IoT Power Consumption Control and Monitoring system provide a building’s energy data and analytics with the use of sensors that feed data into the Internet of Things (IoT). With the integration of this system, the management can monitor and control power consumption/storage and optimize their performance to ensure efficient use of energy.
Maintenance and Repair of Machinery
One of the most consistent costs of running a BTR development is the maintenance and repair costs. This is an area that significant expenses are channeled to annually, which makes it a core area to focus on to reduce operational expenditure.
According to a survey carried out by Statista, among 755 residential landlords based in the United Kingdom (UK) in 2019, landlords spent an average of £3.1k annually on their portfolio. The biggest costs were associated with boilers and renovations or refurbishments.
So, how can data integration ensure efficiency in this area? With the use of Building Management System (BMS) a system that uses the Internet of Things (IoT) sensors. Monitoring and regulating air-conditioning, humidity, power, temperature, Co2, heating, security, and lighting systems within the Build to Rent development. It creates a graph or chart of the overall health of the utility systems. The BMS helps with the early detection of faults in building utility systems through live data capture. Thereby reducing maintenance and replacement costs of utility systems.
Thus, the integration of data makes the maintenance of buildings more effective and predictable. Also, reducing any excess expenses that may be incurred from an inaccurate diagnosis of faults.
Pattern Recognition
Pattern recognition is one of the core benefits of data collection, as it makes one aware of various latent patterns existing in a business. It involves everything from construction, maintenance, management, and leasing to staffing. Thus, equipping investors with enough data to set practical and efficient strategies for BtR investments.
With pattern recognition, predicting things like busy leasing periods, when staff are most likely to switch jobs, and periods where utility systems are likely to breakdown, becomes more accurate. The latest prop techs in the market have shown clients times throughout the year they can expect a spike in the amount of staffing a development needs.
For instance, a survey by Glassdoor cited that January is the most popular month employees make a move to a new job, with nearly a one in five employee ratio (18%). Access to available data will help in the anticipation and preparation of a cost model for seasonal changes. Also, data patterns can show which utility systems to perform preventive maintenance on. Some periods or seasons can put a strain on certain utility systems, which might lead to a breakdown.
Ultimately, pattern recognition empowers management with accurate data to make informed decisions and develop theories to reduce unforeseen operational expenses.
Conclusion
Globally, data is changing our approach to strategies and decision-making. The saying data is the new gold, continues to hold true. And, its benefit to the development of any sector cannot be underestimated. Especially with the impressive performance of integrated BtR developments from Moda Living and Greystar. Certainly, the future of the property sector is data integrated, and Build to Rent is the catalyst.
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