It is no secret that management is a key factor in the performance of any project regardless of its potential. When it comes to Build to Rent, management is a fundamental aspect that must be given its due attention. Based on the fact that the BtR philosophy is focused on tenant experience.
The importance of management cannot be understated as it influences the perceived value of a BtR scheme – regardless of its standard. This is because management directly affects residents’ experience positively or negatively. And, this can make or mar the success of a BtR.
Consequently, the on-site management team makes all the difference on the overall value of a BtR development.
How Does the Perceived Value of BtR Compare to Purchased Apartments with Management Within?
Generally, the perception of BtR building management is a positive one with an average of 4.28 HomeViews rating in 2019, although it dropped slightly in 2020 to 4.24 out of 5 points. When compared to the ratings of owners who bought apartments in managed blocks, the difference is glaring. As the managed blocks owners rated their management an average score of 3.12 out of 5, which is an entire point less than that of the BtR residents.
The difference doesn’t stop there, as only 69% of owners in a managed block would recommend their developer. While more than 90% of BtR residents would recommend their landlord, based on HomeViews 2021 report.
This stark difference does not come as a surprise as the managed blocks performed poorly in the areas of customer service and after-sales care, with 3.79 and 3.37 points, respectively. While BtR management was rated higher by their residents in customer service and repairs & maintenance, with 4.32 and 4.27 points, respectively.
Key Contributors to Outstanding Management
Given the current management metrics of BtR schemes, it is apparent that developers have more room for improvement. With only three BtR developers having an above-average management score across their schemes. The following are factors are that separate the good from the great:
Staff
One key characteristic of high-rated developments is the hospitability of their staff. Training staff on hospitability is non-negotiable; particularly, when dealing with front of house staff like the front desk staff, concierge or security. A resident at Affinity Living’s Riverview BtR highlighted this:
“The management are friendly and are always open to hear and resolve any issue you might have.”
Michela Hancock, the managing director of development and construction at Greystar UK, emphasised the need for hiring and keeping the right people in the industry in a Property Weekly article:
“Finding the right people is challenging, and once you have done so, it is critical to keep them. Motivation, training and continuing to challenge and grow their careers is the responsibility of leaders in our industry.”
Hiring the right staff is a challenging part of building the management team – but once you get it right, it can provide tremendous benefit for the BtR development.
Maintenance
One of the ways BtR fulfils its promise of value, is by providing its residents with prompt maintenance. Although most maintenance work is regarded as the back of house aspect and an unglamorous part of BtR, it is crucial to satisfying tenants. Not just regular maintenance but swift and hassle-free maintenance is particularly appreciated by residents.
“Maintenance is a call away should you require any addition, modification or repair to your flat. The management team is very responsive and proactive; nothing goes unattended.”
Resident, Allegro Living, Birmingham
For any BtR to make a positive difference in its operations, it must provide prompt maintenance service for its residents. Failure to provide this may be damaging to the perceived value of the BtR, as the majority of comments on maintenance revolve around slow maintenance response or the lack thereof.
Online Portals
Technology in BtR developments is no longer considered a luxury but a necessity, particularly online portals. Online portals provide residents access to sorting out administrative issues like filing maintenance requests or booking events spaces, among other things.
Residents living in BtR developments with an online portal rated it highly as a resident at Manchester Life’s Cotton Field Wharf said,
“Building management is great, can log on the portal and they respond very quickly and fix any issue quickly.”
Even residents without an online portal recognise the need for it in their buildings; they were of the opinion that it would help issues be resolved quicker.
“The only drawback I find is that there is no resident portal or booking system… this includes seeing in advance what rooms are booked for private functions.”
Safety and Security
What makes a home is its safety and security. These are some of the basic things expected from any housing. According to the BtR philosophy, the provision of the bare minimum is not acceptable as BtR operators are expected to provide state-of-the-art home security.
BtR developments that can deliver on this are rated highly in the management metrics. For instance, a Greystar’s Charter Place resident said:
“Security are super friendly, and it’s so nice and reassuring to have them there 24/7.”
And, when it comes to management, Greystar is rated 4.31 out of 5.
Since most BtR developments are located in central locations, security and safety is always a pressing concern for residents.
“I feel safe here, the entrance is locked, all areas are well lit and clean, CCTV is in operation.”
Resident, Way of Life, Vida House, Deptford
Conclusion
Build to Rent is a long-term investment, and its success is centred around people (tenants & management). Being able to navigate residents’ emotions and need will make a significant difference in their experience. The experience provides tenants value in their building – the industry must continually innovate on how we can improve that experience without complication the Tenants day-to-day life management.
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