COMMENT When talking about what differentiates BTR from the wider PRS world, I’m often drawn to one analogy in particular: supermarkets. Customers are spoilt for choice, with a multitude of options on offer – whether you are looking for convenience, value, volume or a treat.
This is particularly true in cities, where consumers can choose between stores based on their needs at the time. That might include your favourite limited lines at no-frills discounter Aldi; the wide range of products under one roof at Tesco, which aims to reward loyalty; or treating yourself to one of the dine-in options from M&S.
While the focus is most often price, the reality is customers have a huge choice. The growth of BTR is bringing more choice to residents in the PRS world.
Within that world, BTR often has the word “premium” levied against it. “Oh, it’s a lovely home, but you will be paying a premium.” But BTR is not about price or premiums. It’s about product. BTR brings a wider range of choice to the rental market. At its base, it is purpose-designed and delivered for rent and caters to a specific type of resident looking for something that other players in PRS do not provide.
Subscription lifestyle
While the specific focus of operators varies, BTR providers specialise in service, amenities and community, and BTR residents are drawn to us for these reasons. From 24/7 on-site staffing and security, to beautifully designed homes and lounges, recreational areas, co-working spaces and parks, to community-led events and social occasions, BTR providers understand their residents and cater to their lifestyles.
BTR residents also have the comfort of certainty: over length of contract, timings on repairs and the overall reliability of their landlords.
Even during the pandemic, BTR specialists have been uniquely placed to respond to changing guidance and restrictions in an agile and safe way. This has ensured that residents can take advantage of BTR service offerings through virtual hybrid events while doing things in-person wasn’t possible. The pandemic has also increased demand for these add-ons as people spent an extended period of time at home.
The BTR market is maturing. People are realising in greater numbers what they can and should get from a rental home. This reinforces the model we have spent years campaigning on and, in turn, enables us to advocate for further professionalisation of the sector.
We are a professional voice and long-term partner so increasingly have a seat at the table for policy and regulatory conversations. It is in our interest to think about what assets and communities will look like in the future.
As a result, we have to be dialled in to what is required from an environmental, sustainability and social purpose point of view. BTR providers see the energy usage across their products, know what an asset will cost to operate and have the scale to work with innovative building methods like modular construction. We do not wave goodbye at the point of sale. We think about sustainability at each point on the value chain, from construction to furniture replacement and renewal.
Voice for change
BTR providers also represent a diverse resident base. As such, we need to have diverse businesses to support our tenants. Supporting industry bodies like Real Estate Balance, the British Property Federation and UKAA is one way of driving change. BTR providers can also have important roles in the communities in which they operate. At Greenford Quay, we have set up apprenticeships and created new full-time jobs to aid local employment, but we’ve also run community events to encourage people to come in and use the public space.
The attractiveness of BTR to residents is borne out by the numbers. We can’t speak for the rest of the BTR sector, but Greystar has seen a remarkable 2021 in leasing figures. It is a significant vote of confidence in the sector’s approach. BTR providers in no way hold themselves out to be the only rental housing solution. Different people look for a different experience. We are, however, content to see that we are providing a product that meets the needs of our audiences and is therefore in ever-growing demand.
Bella Peacock is managing director, investment management and operations, at Greystar
