Welcome back to the UK Build to Rent Q&A series. Join us this week as we share a management focused Q&A with Matt Smith, Chief Executive Officer of Allsop Letting & Management.
Allsop is an independent property consultancy with a market-leading reputation for high quality service and integrity, covering the UK from its offices in the West End, the City and Leeds. In addition to its position as the UK’s largest and most successful property auction house, it offers an extensive range of services for residential, commercial, and mixed-use property.
About
Matt joined Allsop Letting & Management in January 2018 and before taking on the role of Chief Executive, was Director of Asset Management.
Matt has extensive experience of PRS and BtR operations and has mobilised sites across England and Scotland.
With 17 years of UK PRS experience, his extensive expertise incorporates all facets of large scale residential portfolio performance including product suitability, design, lettings, management, operations and strategic asset management. With a comprehensive understanding of the steps needed to assess new purchases, create marketing strategies for multiple new-build units and the set up for build to rent management services Matt works closely with Allsop LLP’s BtR and Living Markets teams ensuring financial and operational analysis is consistent with the latest market trends.
Q: It appears that the BtR sector has continued its openness in information sharing to an extent that we haven’t witnessed in other UK property sectors. Why do you think this is and how do we ensure this ethos continues?
A: A word that is often used to describe BtR is ‘nascent’, and although we’re starting to see stabilised assets trade, I think there’s still a lot to be learned for our sector. Both the industry and the stock being brought to market continue to evolve, and whilst it is a very competitive environment, there are enough customers to go round.
Ultimately, most of our residents are coming from PRS stock rather than other BtR developments (despite the rapid expansion, BtR is still only 1% of the PRS market), so there is plenty of room for growth.
Allsop has always been highly protective of our clients’ IP and data, but we do collaborate and share best practice with peers. The UKAA and BPF are both excellent forums where industry participants meet, discuss challenges and opportunities, and ultimately push the sector forward.
Platforms, such as Homeviews, also create transparency on how successful owners and operators are in achieving excellent customer service.
Q: What is the USP your management guarantees your tenants / what are some of the USP’s you’ve seen in developments and how would you ensure the message is endorsed through the business.
A: Our team culture is central to the success of the schemes that we manage. Ensuring the best possible living experience is vital in creating fantastic communities where our residents want to stay, which in turn results in better outcomes for our clients.
We are open and receptive to customer feedback and eager to learn about their experiences, and constantly make marginal as well as more substantial (design or service-focussed) improvements to our schemes to deliver best-in-class customer experience across the portfolio.
I firmly believe Allsop-managed schemes have been so successful because of the people we employ and the inclusive nature of our business.
Everyone is working towards a common goal of creating a fabulous experience – whether that’s the onsite staff or our head office team. Everyone is constantly thinking about how they can push the bar and delight the customer.
Q: When reviewing a scheme, how do you ensure the health and wellbeing of the tenant is considered and how important is it to top tier management in 2022 and beyond?
A: Health and wellbeing have certainly increased in importance in BtR, and our client base is more health-conscious than ever before. We manage some amazing schemes with high-quality health and wellbeing initiatives and amenities available to our customers.
Our most recent scheme, The Lark in Nine Elms, has various flexible fitness areas, a residents’ lounge, co-working spaces, podium gardens, a cinema and access to electric vehicles. Quality communal areas and shared amenities play a vital role in fostering a sense of belonging among residents.
Additionally, our schemes are Fitwell-accredited, meaning their design and configuration support the wellbeing of their occupiers and contribute to the creation of healthy communities.
Q: What are some examples you’ve seen of additional tenant incentives that have achieved an increase in rental premium for a development?
A: Additional services/facilities such as broadband, repair services, access to electric vehicles and visitor studios for guests of our residents have all proven to be excellent revenue streams for us and are clearly appreciated by our customers.
Q: Technology within developments and the proptech sector as a whole are growing at an exponential rate. In your opinion, if you had to split the technology requirements within a development into the following 3 sections:
- The bare minimum a BtR should have in 2022
- The current market/business expectation
- The current best in class / tier one developments
What technology / features would you place into each section?
A: Features, such as residents’ portals or parcel lockers/locker rooms are now seen as a basic necessity by both residents and building management teams.
Leak detection devices are increasingly incorporated into schemes, and we’re now using smart locks to enable ease of access for maintenance but also to facilitate unaccompanied viewings across multi-family and single-family projects.
Ultimately, we’re trying to use tech to deliver a more seamless customer journey. What that journey is varies by market (an apartment building in London’s zone 1 will differ from a single-family scheme in a suburb) but all of our customers expect to be able to access their resident portal remotely.
Allsop has worked with companies like SmartRent to generate operational efficiencies – this platform allows us to deal with maintenance issues swiftly. SmartRent is also a great tool for facilitating online viewings and self-guided tours.
Integrating technology into our operations is the cornerstone of our approach to property management. Providing the bare minimum isn’t really in our culture as we’re always trying to delight our customer base, not just “meet expectations”.
Q: BtR management has the potential to be an outstanding career choice. How do you think we can educate the right people with the right message on the benefits of being a part of this sector?
- Who are the right people?
- What is the message?
- How do management companies retain them?
A: I think the sector is very fortunate to have a number of outstanding people already in place. A lot of excellent work has gone into the development of the IRPM BtR course, and I know of a number of operators who look to place their new staff on this course or an equivalent internal course.
At Allsop we are very proud of our record of developing new talent from across a number of sectors including student, hospitality, traditional PRS, commercial offices as well as our apprenticeship programme, which has proven hugely successful. We’ve worked very hard to develop our own people and ensure they can progress, feel rewarded and remain motivated.
I’m a great believer in taking people on a journey and working collaboratively to develop roles and new skillsets as the sector’s requirements change. Getting people involved in various aspects of the business beyond their day-to-day roles is hugely important – it allows them to feel like a part of something bigger and see new opportunities for growth.
Allsop’s greatest strength is its people and culture – ultimately that culture is also felt on our sites and is vital to the success of our business.
A Big Thank You… to Matt Smith for taking the time to respond.
If you have any other questions regarding this interview, you can reach out to SEC Newgate UK at allsop@secnewgate.co.uk
Our content calendar has enough free space for one or two more contributors to this series. If you feel you would offer value and have experience in build to rent investment, design, management or ESG – contact us here.
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