The build-to-rent market is seeing a lot of growth in the UK, but one thing that could be restricting maximum returns for BtR owners’ operators is the gap between operating income and operating cost. This article will explore how innovative technologies can help build an increased net operating income over time, helping BtR investors increase their ROI on their investments.
Reduce the cost of renting through technology
We don’t mean you need to reduce your rental rates. Instead, we invite you to reduce the amount of expenditure your business exerts on the rental processes. From maximizing the lease velocity to reach stabilization, to using A.I powered tech to predict what units will be void and for how long to enable a marketing campaign to be ready to go as soon as required.
Technology specialists such as Yardi and Smart Rent provide the option to let the technology do the thinking and utilize data and information to streamline the most cost exhaustive elements of operating a BtR development.
Maximize every inch of the development
Maximizing the value of each square foot within a build-to-rent development is key to reducing costs and maximizing profits. There are many ways to do this, from using technology to reduce spending on rental processes, to making the most of every inch of space in the development.
The process involved to achieve this would be to identify the “dead” space within the development i.e., space that isn’t being utilized to its full potential. This could be areas like unused bike store facilities, under booked amenity space of the air above a car parking space. Revaluating how this space could be used to drive further income is a process that should be reviewed and carried out quarterly.
Businesses such as Car-Park Storage offers the ability to provide an extra 80 cubic feet of storage area by utilizing the air above a car parking space which in turn could be rented out at cost to a tenant who requires additional space for seasonal storage while adding another revenue stream to the developments operating income. This is just one example of the plethora of ways to drive continued value and income from a development through its life.
Get certain of your needs and reduce over or under staffing periods.
Operating costs are an important part of any business, and BtR developments are no exception. To keep costs down, it is important to understand the staffing requirements for your development. Too few staff can lead to increased workloads and stress, while too many can lead to unnecessary expenditure.
There are several ways to reduce staffing levels and streamline operating costs. One way is to use technology to automate tasks that would traditionally be carried out by staff. For example, using building management software (BMS) to manage functions such as leasing administration, mechanical and electrical systems checks, and security can reduce the need for manual input. Automated systems can also help to make sure that systems are running at optimum efficiency, preventing wastage of energy. This filters through to a reduction of maintenance and staffing costs. Having a BMS that automates and pre-loads a specific monthly, weekly, and daily task list for staff will ensure that every hour of the workday is utilized to get the best out of all staff on site.
Final Take away
Maximizing space and using new property management technology are two great ways to reduce costs and increase income in a build-to-rent development. By utilizing technology, you can automate many tasks that would traditionally be carried out by staff, reducing the need for manual input. This leaves more time for creativity and problem solving when unexpected issues or problems arise. In short, using the right technology and continually innovating and improving the use of space within a development can save you money while maximizing income-generating opportunities.
Your thoughts…
What are some innovatively ingenious methods of maximizing a development’s income that you can think of? We want to hear every answer you’ve got. Let us know in the comments!
Subscribe
Every Friday we send an email with that weeks published posts. Subscribe to our weekly newsletter to make sure you don’t miss a thing.
