Welcome back to the UK Build to Rent Q&A series. Last week, we wrapped up our two-part interview with Freddie Wonnacott from M&G. The Q&A’s covered both investment & design respectively. If you missed them, you can find all of our Q&A’s here. This week, we’re sharing our first management focused Q&A. Please enjoy this insightful interview with Pierre Melhado.
CA focuses on niche, commercial real estate asset classes with powerful secular growth drivers and resilient performance. While each CA community draws inspiration from its surrounding neighbourhood, all are highly amenitised and professionally operated by CA’s in-house management team, which places health and wellness, sustainability and technology at the forefront of the residential experience to deliver exceptional results.
About
Pierre Melhado, Managing Director, BTR at CA- Ventures. Pierre has over 15 years in property management and has managed portfolios in excess of 8,000 units across 15 markets in USA.
Q: What are some things you wish you’d known when first hiring for a developments BTR management team?
A: As a manager you always want to be involved in the early stages of pre-development to ensure the theme matches the service of delivery, for example don’t miss on sustainability if that is the theme of the development.
It is more important now than in the past that all dancers are on stage at the beginning to ensure all stages of the development are well executed at date of performance.
There is no point in investing in technology if you are investing the wrong type of technology and the property management team does not understand it. It is like handing someone a race car and not knowing how to shift gears, there must be investments in people to ensure the right competencies are in place.
At CA, we have global heads for sustainability, health & wellness, technology & innovation, revenue management, and more. You must invest in the right people and build synergies with the development team early on in the life cycle of the scheme.
Q: What is the best pound saver for operating cost you’ve seen in your career?
A: Using a Facilities Management software/app is a cost saver because the leading apps offer a holistic view in managing your Facilities.
A well thought out app will track all your service requests and ensure they are closed out in a timely fashion. This will ensure your residents are satisfied thus increasing renewal conversion rates.
In addition, it can track where recurring issues are occurring and become more prescriptive in the facilities management approach as opposed to being reactive.
By providing the proper proptech tools to your facilities management team you are equipping them to reduce costs, increase resident retention, thus positively affecting your bottom line.
Q: What do you think will be the separator of top tier management companies in the coming decade?
A: Companies that invest heavily in developing a consumer facing brand which resonates with consumers will be more successful.
In some ways, the Covid-19 crisis has become a dry run for the sustainability agenda and an opportunity for companies to see how they can tackle an expanding range of environmental, social and governance (ESG) challenges.
The risk of a pandemic was known, and yet the crisis has exposed a lack of adaptability and resilience for many companies. The consumers want to be aligned with companies that are focused on Sustainability.
Companies which focused on sustainability agendas and were proactive during the pandemic will be remembered by consumers for their “Resident First” approach.
Q: BTR management is all about fostering a community within the development – how important is integrating that community feeling to the wider area & how is this currently being achieved?
A: Integrating the greater community into a development is very important otherwise the development may face long term hurdles such as not being part of the fabric of the community or lacking the support of the local community. When you include the local community, you are giving them an opportunity to be a part of something grand which in turn will make the development and community more successful.
Proptech groups like Built ID allow for effective community engagement in a digital setting. They have an interactive polling interface tied into targeted digital marketing which allows for developers to engage with the community and allows for greater involvement from the community. Getting the community involved in the early stages will allow for a bigger commitment into your development.
You attract tenants by building the right apartment community for the neighbourhood. Working with local communities and their stakeholder as partners, you meet the specific needs of the neighbourhood. This creates an atmosphere where residents can thrive academically, personally, and professionally.
Q: What do you see as the core values that should underpin any management team in BTR?
A: The core values that any team should have are a positive attitude, heart of service, a strong work ethic, and honesty and integrity. I always hire for those persons that share these values as you cannot train someone to be hospitable and have a heart of service.
This is why employees from the hotel sector typically make a good fit in the property management sector as they are naturally inclined to provide high levels of service in an operational setting.
Q: Anything else you would like to add on a personal note?
A: I am glad I made the move from USA to the UK as it is an exciting time for BTR in the UK. CA will be delivering housing across several cities in the UK with the first deliveries in summer of next year in Glasgow, Edinburgh and Sheffield.
We are excited about our in-house developments as well as our third-party management services and look forward to collaborating with others in this sector. Happy to share best practices and lessons learned with anyone who is interested. I am also excited about celebrating the successes of other BTR Developers and Operators in the UK. After all, a rising tide lifts all boats.
We hope you enjoyed this engaging conversation with Pierre. Thank you for reading & we welcome any feedback you have regarding this series.
For now, have a good week & don’t forget to join us next Monday for our next design Q&A with John Badman from CallisonRTKL.
UK Build to Rent Team
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