The subscription lifestyle is becoming increasingly popular, with almost every aspect of our lives available subscription-based. The ownership culture of the previous generation is no longer an attractive option as it was previously. Now people prefer the flexibility the subscription lifestyle provides in the face of a fast-paced era.
The subscription lifestyle offers people flexibility, convenience, and affordability. Allowing people to live a convenient lifestyle without having to pay for it all at once. Currently, it is popular in every aspect of life from leasing a car, home & insurance, phones, gym memberships, and even entertainment such as Netflix, Spotify, and much more.
This trend has also caught on in the rental housing market. Even in the UK, where the owning of homes is considered a milestone. The percentage of UK tenants doubling between 2001 and 2011, according to the 2011 census. With persons aged 25 to 34 making up the largest group of this percentage. Apparently, the younger generation of professionals prefers the subscription lifestyle rather than owning a home.
So, how can the Build to Rent sector gain from this growing love for subscription and increase retention rates? A recent webinar hosted by the United Kingdom Apartment Association (UKAA) addressed this issue and put forward a technology catalyst to take the sector to the next level.
Technology
Technology integration in buildings is no longer considered a mere luxury but a necessity. Now the provision of tech is linked to the best living service for tenants. With technology, operators can boost their retention percentages. By providing communication via technology, residents can easily network with one another and form subcommunities. Subcommunities of residents with similar interests via forums or groups to create dog walking groups, exercise or yoga classes, or even dungeons and dragons are known to boost tenant retention.
BtR philosophy is all about finding your place of conformity outside of the four walls of your apartment. As Stephanie Smith of Invesco puts it, “Tenants want to feel like they are a part of something bigger.”
Also, the availability of online portals in BtR development is a great way to deal with administrative matters. These apps allow residents to access rental documents, log or track maintenance issues, access other important information, and much more. With technology, this process is streamlined and secure, providing both the management and tenants with transparency. Which will significantly boost tenant retention, as it is a feature residents value highly. And, those without online portals recognised the need for it their buildings.
Think Local – Live Global
Global BtR brands have the opportunity to provide global service to their residents across the continents they travel. This global service is starting to mature and could take a chunk out of the Hotel market share. BtR brands with a global reach and developments across continents like Greystar is already implementing this idea.
Greystar, as a global brand, offers services across Europe, the United States and London, and through their online booking platform, you can live in any of their developments across continents. You also enjoy the hotel like treatment with full concierge facilities to help you – book the best restaurants, get tickets to the best show – all of which is achieved by the use of powerful technology.
Brand Loyalty
To build a sustained subscription or retention by tenants, cultivating brand loyalty is the best way to achieve it. So that even tenants wish to move out of the area, they are still loyal to the BtR brand.
As Fredrik Lerche-Lerchenborg of Lavanda puts it, “If I want to move home – can I stay part of this club like environment.” BtR brands must choose one individual service to focus on to be their focal point in attracting and retaining residents even when they move. This is another reason why placemaking within a BtR development is a non-negotiable element.
Conclusion
We are subscribing more and more of our life & our living situation is no different. BtR developments trying to cultivate brand loyalty must ask themselves – what do we want to be known for within our brand, and what do we want our tenants to associate as the real value they get to subscribe to our service?
From here, technology can be used to provide a master-class within that area to go above and beyond the tenant expectation and keep the continual subscription.
If you would like more information on the technology that can build the niche association of your brand, please contact info@ukbuildtorent.com
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