Build to Rent is different from affordable private rent units and other types of rent developments because they are purpose-built and managed by professional institutions, with a focus on providing high-quality homes and excellent service to tenants.
As BtR continues to grow in popularity, it is more important than ever to make sure that your development stands out from the rest. By following these 61 ideas, you can create a build to rent development that tenants will love and investors will appreciate. From creating communal spaces to choosing the right location, this list has everything you need to get started!
Build to Rent Investment stage
Invest in the right location
The location of a build to rent investment is important because it will determine the type of tenants that you attract. Look for a BtR development opportunity in an up-and-coming area that is close to public transport, schools, and other amenities.
Buy the Best Build to Rent Land
Paying the correct amount for land to develop is crucial to the success of a development. Overpaying for the land can result in a negative return on investment while underpaying can lead to problems with the build itself.
Keep adding value as the financial model progresses
Continually reviewing and adding value and income generators to a financial underwrite will help to protect the build to rent investment from any unforeseen circumstances. This will also ensure that the development remains attractive to investors and tenants alike.
Test and challenge the build cost at every step of the design
Ensuring the development build costs are as accurate as possible will help offset any unforeseen costs that could occur through the process of development.
Use Modern Methods to improve IRR (Internal Rate of Return)
Making reductions to the building program will improve the IRR of the financial returns, this can be taken a step further by implementing prefabricated apartment pods and bathroom pods so realize the investment return faster.
Build to Rent funding Structure
Securing the correct funding structure will improve a BtR development by ensuring that the development is completed while having full access to the funds required to keep the momentum through to the end of the development
Professional Research and Data
There are a number of top-quality research companies in the rental sector. Finding the right company for your needs is vital and will provide the most accurate expectations for returns of individual rent properties.
Rental Value Review
In market uncertainty, rental values can constantly be in motion to ensure tenants feel they are getting the best value and what they consider an affordable private rent homes. Continually reviewing and updating the model will ensure an up-to-date return expectation
Having the right Build to Rent investment partner
Having the correct investment partner will impact development because they will bring the experience, skills, and resources to maximize the BtR opportunity. The right team creates a bespoke build to rent development that will outperform investment expectations.
Move with the location economic cycles
Be sure not to choose a development location that is, despite the sector’s infancy, already overly saturated or be willing to compete for the best tenants from day one.
Anticipate the Risk
We can never know how the market will change from month to month but building in risk sensitivities for things like build cost inflation and contingency will ensure your development doesn’t underperform.
Know your Exit value
All investment strategies will have an exit strategy and value. Knowing this from the outset allows rent developments to have a clear direction to continually head towards over the long period it exists.
Plan for rental income increase
The continued increase in rental rates we are seeing will impact the returns of the model on a consistent basis. Understanding this will allow for more accurate financial reporting.
Set your yield target
As with the Exit value – knowing the yield your build to rent development must achieve will keep the team in control of the scheme on track and working together to ensure that key-value metrics must be met.
Plan for Void periods
Void periods of private market rent homes are inevitable. Planning for when the scheme is not fully stabilized results in the underwrite being realistic and not overreaching for returns.
A clear plan to stabilization
Stabilization will be the primary objective of newly completed developments in the rental market. Having a clear timeline and marketing structure to achieve this will keep investors of the scheme happy.
Build to Rent Design and Planning Stage
Offer a Variety of Unit Types
When designing a BtR development, it is important to offer a variety of unit types in order to appeal to as many tenants as possible. Research shows that studios, one beds, and two beds lease faster than three of four beds.
Massing – make it relevant to the history of the area
Having a massing that fits with the surrounding area will win points with the local authorities because it shows that you are trying to be a good neighbor and that you are actively trying to build upon the history of the area and raise the local community rather than just flood the market with as many units as possible
Community – ask not what the wider area can do for you..
The best build to rent schemes in the world contribute and add to local community life, they don’t just sit there and exist. If you want to build a development that will be the best it can be, make sure to include community space, play areas for children, and other amenities that will improve the lives of those living in and around your BtR development.
Add a Gym
Yes, we went for the low-hanging fruit. The percentage of build to rent schemes with some form of gym integrated into the development is growing day by day. It is now seen as an essential part of the BtR offering and one that tenants are increasingly looking for when searching for their next home. Given the health movement sweeping the globe. We don’t see this changing soon!
Work From Home Space
After covid 19 work from home space is vital in any build to rent development. It is important to have dedicated space for those who now work from home one or two days a week as well as the digital nomads who are looking for a place to live and work from full time.
Bookable meeting rooms
A bookable meeting room is important because it allows BtR developments to offer a service that can be used by businesses in the local area as well as those who live in the development. This is a great way to build community and also add an additional income stream for the development.
Games rooms
One of the great things about build to rent schemes is that they build community. This can be seen in things like the inclusion of a games room in the development. This space provides a place for tenants to come together, have some fun and meet new people.
Roof terrace – get to the green
A build to rent development with a roof terrace is always a hit with tenants. This is because it gives them a place to relax and escape the hustle and bustle of city life. It also provides some much-needed green space in an urban environment.
Post rooms
A build to rent development with a post room is a great way to add an extra level of convenience for tenants. This is because it means that they don’t have to go out in the cold to get their mail, they can just pop down to the post room and pick it up at their leisure.
Package storage
Another great way to add an extra level of convenience for tenants is to include package storage in the build to rent development. This means that tenants can have their packages delivered to the build to rent development and then pick them up at their leisure, without having to worry about them being stolen or missing deliveries
Designated move-in zones
A build to rent development with designated move-in zones is a great way to make the moving process easier for tenants. This is because it means that they can unload their belongings in a safe and designated area, without having to worry about blocking traffic or disrupting the flow of foot traffic in the build to rent development.
Additional storage
Another great way to add value for tenants is to include additional storage in the development. This can be in the form of storage units or lockers that tenants can use to store their belongings. This is a great way to free up space in the apartment and make it more convenient for tenants.
Wider corridors
Wider corridors are not always a must, especially if the scheme is tight on floor plate size. However, they provide a safer and more convenient environment for tenants. This is because wider corridors make it easier for tenants to move around the development and also make it less likely for them to be involved in accidents.
Circulation from end to end
Another way to make the development more convenient for tenants is to circulate from end to end. This means that tenants can easily get from one side of the development to the other, without having to go through a maze of corridors.
Rubbish chute
A BtR development with a rubbish chute on every floor is a great way to make life easier for tenants. This is because it means that they don’t have to go down to the basement to dispose of their rubbish, they can just put it in the chute and it will be taken care of. However, be aware of the potential for clogging and maintenance that may be needed.
Well-considered refuse walk
Well-considered refuse walkways are another way to make life easier for tenants. This is because they provide a designated area for tenants to dispose of their rubbish, without having to go through the main living areas of the development.
Use BIM to provide to have as I live version of the building
BIM can be used to provide future management and the funder with a live version of the building. This is a great way to show tenants what the development looks like and how it functions. It also allows tenants to see how their apartments will look before they move in.
Plan the back of house
The back-of-house spaces in a BtR development are often overlooked, but they are essential to the smooth running of the development. This is because these spaces include the package storage, refuse area, management offices, facilities, and other areas that are not typically seen by tenants.
Build to Rent Management stage
Create a build to rent identity
Your build to rent development should have its own unique identity that sets it apart from the competition. This can be done through things like branding, architecture, and amenities.
Get the right people
The people involved in the development are just as important as the physical aspects of the building. This is because build-to-rent is all about providing a service to tenants, so it’s important to have a team that is passionate about giving tenants the best possible experience. This can not be emphasized enough – employing the right people to manage a BtR could be the highest yielding aspect of the scheme.
IoT inclusion
Including IoT devices is a great way to add value for tenants. This is because it allows tenants to control their environment and make the most of their space. IoT build-to-rent also has the potential to save investors money by reducing energy consumption.
Create a sense of community
One of the most important things to tenants is a sense of community. This can be created by hosting events, providing communal spaces, and offering concierge services.
All in one BMS
A BtR development should have a comprehensive BMS that includes everything from access control to facilities reporting. This is because it allows tenants to be in control of their environment and makes the development more efficient.
Plan every step of the tenant journey – consistently improve
The tenant journey should be planned from their first viewing to the moment they move in, to the day they leave. This is because BtR is all about providing a service to tenants, and a great way to do this is to make sure their journey is as smooth as possible. Make the BtR journey a true experience.
Events spaces
BtR developments should have a variety of event spaces that can be used by tenants. This is because it helps to create a sense of community and allows tenants to socialize with each other. This space can also be booked for private hire to allow tenant a further feeling of home by hosting small gatherings of their own.
Create private outdoor space
Private outdoor spaces are a great way to add value for tenants. This is because they provide a place for tenants to relax and enjoy the outdoors without having to leave the development. Think Yoga on the rooftop.
Design for tenant safety
A building that keeps the tenant safe from risks like a fire is important and must be included in the design from day one. This includes things like having proper exits, fire alarms, and sprinkler systems.
Have a system or place to allow the tenants to meet their neighbors
An important aspect of build to rent is creating a sense of community. One way to do this is by having a system or space for tenants to meet their neighbours. This can be done through things like communal spaces, social events, and concierge services.
Plan employee progression through the company for quality staff retention
When BtR is done right, it’s a great way to provide quality homes for tenants. This can only be achieved if the development has quality staff. That’s why it’s important to have a system in place that allows employees to progress through the company. This will help to retain good staff and keep tenants happy.
Facilities management – know what’s going on in the development
True of the private rented sector and specifically BtR is all about providing a service to tenants. This means that it’s important to have a good facilities management team in place. They should be able to deal with any problems that tenants have and make sure that the development is running smoothly.
Refurb, revamp, reinvent to compete with new developments
The BtR sector is constantly evolving. This means that it’s important to keep up with the latest trends. One way to do this is by refurbishing, revamping, and reinventing the development. This will help to keep tenants happy and attract new ones.
Tenant and Staff Feedback loop for continual improvement
Build to rent is all about providing a service to tenants. This means that it’s important to get feedback from tenants and staff. This feedback can be used to improve the development and make sure that tenants are happy.
Market the right way – sell the right message
When marketing build to rent, it’s important to sell the right message. This means that you need to market the development as a place to live, not just an investment. This will help to attract the right tenants and ensure that they’re happy with their new home and are willing to pay a premium.
Maximize tenant retention by making the development their home
Tenant retention is a big part of BtR. This means that it’s important to make the development feel like home for tenants. This can be done by creating a sense of community, providing quality facilities, and getting feedback from tenants.
Build to Rent Development Longevity
Design in sustainability from the beginning
For build to rent developments to ensure they are around for the long term. This includes using sustainable materials, having green space, and being energy efficient.
Go above the building regulation requirements
When it comes to BtR, it’s important to go above and beyond the building regulation requirements. This means that you need to make sure that the development is of high quality and meets the needs of tenants.
Hire a sustainability specialist
When it comes to build to rent, it’s important to hire a sustainability specialist. This will help to make sure that the development is sustainable and meets the needs of the future.
Measure everything to building produces
It’s important to measure everything when it comes to BtR. This data can then be used to improve the development and make sure that it meets the needs of tenants.
Make it smart technology ready for the tenant.
When it comes to BtR, it’s important to make sure that the development is ready for smart technology. This means that you need to make sure that the development is wired for smart technology and has the infrastructure in place.
Be aware of future trends
When it comes to BtR, it’s important to be aware of future trends. This means that you need to make sure that the development is ready for the future and can meet the needs of tenants.
Reduce the carbon production from the outset
When it comes to BtR, it’s important to reduce the carbon production from the outset. This means that you need to make sure that the development is built with sustainability in mind.
Use solar panels and wind turbines
When it comes to BtR, it’s important to use solar panels and wind turbines. This will help to reduce the carbon footprint of the development and make it more sustainable.
Install an EV charging infrastructure
When it comes to build to rent, it’s important to install an EV charging infrastructure. This will help to make the development more sustainable and attract tenants who are looking for a green option.
Reduce your waste
When it comes to BtR, it’s important to reduce your waste. This means that you need to make sure that the development is built with sustainability in mind and that all waste is recycled or reused.
Use water-efficient fixtures
When it comes to build to rent, it’s important to use water-efficient fixtures. This will help to save water and make the development more sustainable.
That’s a Wrap!
This concludes our list of ideas to help create the best build to rent development. we hope you enjoyed and please share with anyone who might find this post helpful! thanks for reading.
By following these tips, you’ll be sure to create a BtR development that is sustainable, attractive to tenants, and meets their needs. By doing so, you’ll maximize investor returns and ensure a high quality of living for tenants. Thanks for reading!
What other tips would you add to this list? Let us know in the comments below!
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