Yardi attended the Space+ ALT/RESI UK event in London at the end of April. Justin Harley, regional director for Yardi sat down with James Saunders, CEO of Quintain Living to discuss the insights and trends within the rapidly growing BTR, PBSA and co-living markets.
Rise of Technology
Starting the discussion, Saunders shared with the audience his first-hand account of the changes he has witnessed in the rental sector and how technology has become increasingly important. As the pandemic forced many businesses to adapt to remote work, Saunders had to quickly pivot from a face-to-face leasing operation to a virtual, digital leasing operation.
“We implemented new technologies, such as contactless tours and found ways to keep our core business going,” said Saunders. “As a result, we were able to lease practically 24/7.”
The company emerged from the pandemic with a suite of digital leasing tools that had proved invaluable in the current market, allowing for the seamless move-in of 500 people in a single block. Quintain Living manages a Build to Rent (BTR) community comprising of 5000 renters and 3600 rental apartments, with an additional 3000 apartments currently under development.
Technology allows build to rent companies to adapt. Having an efficient property management system improves consistency with leasing and onboarding. It simplifies processes and helps BTR companies focus on priorities.
The Focus on Sustainability
As sustainability continues to gain importance among tenants, landlords and operators are investing in more sustainable buildings and practices. With ESG at the forefront of market trends and dominating investors’ minds, Saunders was asked by Harley whether residents share the same sentiments.
The short answer is yes. Saunders explained that sustainability is very important to residents but didn’t think it was being utilised enough within the rental sector. “For the residents, I think it is going to be incredibly important,” stated Saunders.
He continued by highlighting the significant shift in renters’ priorities regarding ESG considerations. Noting while ESG used to be a mere afterthought at the end of a tour, it has now become a top priority for renters – accelerated by the pressures of the cost of living. Thus, property developers who are investing in radical, efficient, low-carbon green buildings are more likely to achieve success. But for those who are “are not investing in sustainability right now, it’s going to come back and bite them hard, further down the line”.
The Importance of Community
Having developed offices and artwork centres to retail spaces, Quintain Living realised that to remain competitive in the rental market, they needed to invest in both its properties and the surrounding space. Renters are increasingly seeking more than just a place to reside – they are looking for a community. To address this demand, Quintain Living implemented the co-living method, as explained by Saunders, “Investing in streetscape, as well as independent restaurants and retail stores, you can create shared spaces and social events that foster a sense of community and ‘transform the environment’.”
Developers are also incorporating communal areas into their BTR and PBSA properties, such as rooftop gardens and gyms. Furthermore, they’re investing in resident apps to provide renters with opportunities to interact with their neighbours. Saunders highlighted that those that provide apps will not only let residents carry out the simple stuff, such as, ‘interact with the people, pay and see their bills,’ but will ‘help to build a community’. Therefore, making their developments more attractive towards prospects.
Takeaway Advice from James Saunders
After an engaging conversation about market trends, digital adaptations and the importance of co-living, Harley wrapped up by asking Saunders for advice on how to stay successful in the BTR sector. To stay successful in BTR, you need to think about 4 things:
1. Be bold with design – make it stand out
2. Think about the operator cost of the building from the outside
3. Invest in your tech
4. Invest in your people
How to Build a Successful BTR Scheme: Insights from Senior Property Developers and Designers
In the next afternoon session, Yardi’s Senior Sales Executive, Georgie Drewery, hosted a roundtable discussion and was joined by senior property developers and designers including Rob Couch, head of technology and design at Quintain Living and Gary McCluskey, managing director at Greystar.
The discussion was centred around their ‘Experience’ in BTR developments and specifically three aspects: design, storytelling and technology for residents. The participants delved into the significance of these factors in building a thriving BTR scheme.
Spotlight takeaways included:
Design
“The design of BTR development comes down to three fundamental things, great apartment, great entry space and great service.”
“Technology has always been an enabler to what we want to achieve. Using those tools to do design decisions is critical.”
“People should be brave…developers should be brave to have a point of view and go with it.”
“I would centre it around what it is that you like, where you believe in. The market will find you – You’ve got to, in a sense, create the honeypot and all of the bees will come to you.”
Storytelling
“The story of a building starts in the history of the area. It starts way back when the area was converted into residential.”
“Your amenities space must tell the story of who is going to live there. If there’s a disconnect there, it’s not going to work.”
“The relationship that the management team build with the residents is as important as the quality of the apartments and the quality of the amenity. That’s the key to a successful narrative.”
Technology for Residents
“Technology creates a community as well as defines it.”
“You could bring the technology in, but you could also add value to your property with it.”
“Technology repurposes operational roles into something more, it drives interaction.”
“It’s a commodity now. It’s not a unique selling point, it’s not a point of difference anymore. The risk as a real estate developer is screwing it up.”
See what events we’ll be attending in 2023 and meet with Team Yardi or get in touch to see how our cloud-based build to rent technology can help you.