By 2032, the BtR market is forecast to be worth £170 billion, but with the UK currently enduring an economic rollercoaster, how can investors have the confidence to ride the BtR wave? Competition is rife, with an array of players – many of them new to the sector – looking to dip their toes into the market.
As the market continues to mature, how can it achieve sustainable growth and avoid threatening economic storms? The answer lies in understanding changing tenant expectations.
The importance of organisation
With investors large and small looking to join the sector, it is important to lay the foundations for a successful market entrance. Preparation is crucial as disorganisation and short-sightedness will result in risks.
Customer experience should be the most important factor for those looking to launch a BtR venture. This means ensuring that all property management systems are in sync to provide tenants with seamless services. This includes setting up an efficient Customer Relationship Management (CRM), ensuring tenant communication needs are met, and fully incorporating ESG concerns into plans. Without these crucial pre-production steps, the experiential elements of BtR that frequently make headlines risk falling flat.
Tenants at the heart of BtR
Companies should focus on building services that evolve alongside the tenant. Lessons can be learnt from the student living boom. For instance, take the acquisition of a £71m 178-unit BtR property in Stratford by the UK’s largest student accommodation owner, Unite Students. Student living is already paving the way in incorporating a range of value-add services, such as gyms, cinemas and communal spaces, that place tenants at the centre of the market. BtR operators should take note of the importance of prioritising tenants through implementing amenities that create a sense of community.
The transformation of the commercial property sector post-pandemic also provides an interesting example of how to respond to increasing demands for high-quality, around-the-clock services. For instance, the office flex space sector now aims to bring the comforts of home to the office by offering relaxing perks and services. Drinks company, Innocent,
for example, boasts five floors of fake grass, park benches, bunting, and ping pong tables in their Kensal Green office. The beverage giant has ensured that its office provides a library for employees to relax in, with the walls decorated with baby photos, punchy slogans, and colourful graphics to give the place a creative and relaxed atmosphere.
The key to the market – property management systems
This begs the question, how can those looking to ride the BtR wave similarly ensure they stand out from the crowd? Behind the shiny, high-end luxury feel of a large portion of the BtR market is a hectic business model consisting of a plethora of administerial and organisational tasks that go unseen by tenants.
Property management systems are the key to unlocking organisational success for the next generation of tenants. Creative, tech-driven tenancy management systems guarantee that admin-heavy tenant requirements are efficiently met and incoming requests are properly flagged, all whilst allowing time for staff to concentrate on other services that improve tenants’ quality of life.
With this goal in mind, at Grosvenor Systems, we have engaged in a new partnership with tech company Spike Global to streamline the property management system by creating a solution that digitalises the entire process, making tenancy management and accountancy headache-free for both landlords and tenants. More efficient property management processes lead to property managers having more time to focus on further innovating tenant experiences.
Keeping the tenant at the centre of BtR while maintaining profits is possible through sustainable innovation, aided by specialised software and technological functionality. Tenant expectations and technology are evolving, and with the BTR sector experiencing a 20% year-on-year increase to keep up with demand, those who prioritise short-term profits over tenant needs risk missing out.
