Resident Satisfaction Drives Build to Rent Boom

The Build to Rent (BtR) sector experienced a significant recovery and growth in 2023, with resident satisfaction reaching its highest level ever. According to the HomeViews 2024 Build to Rent Report, residents rated their homes higher in 2023 than in any previous year, with management ratings showing the most dramatic improvement. This article explores the factors contributing to this surge in resident satisfaction. It also explores how maximising operating efficiency can uphold these standards with protecting investment.

The BtR sector’s competitiveness has led to heightened standards industry-wide. The Resident Choice Awards illustrated this with narrow margins and high standards, pushing operators to excel in service and amenities. This competitive drive has significantly boosted resident satisfaction as operators strive to outdo each other.

Within this landscape, the ‘get it right first time’ design strategy promoted by Cowan Architects has emerged as a crucial guiding principle. Advocated by investors and developers wary of reputational damage and the expense of revisiting improperly planned projects, this approach emphasises thorough, high-quality design to avoid costly repairs, compliance problems and reputational risks. It also enhances the value proposition for funders and investors by ensuring a solid return on investment and achieving carbon compliance and energy efficiency in UK architecture. It thereby increases its appeal to stakeholders.

A vital element of the ‘get it right first time’ strategy is operating efficiency, the optimisation of which is essential to successful BtR. This is both in terms of maintaining the standards that are currently driving the sector’s success and also from an investor perspective. Schemes that demonstrate lower operating costs—Gross to Net income—are particularly attractive. Architects play a crucial role in achieving this by understanding operating dynamics and helping to lower costs. They can contribute by, for example, selecting materials that require minimal cleaning, placing bin stores in locations that do not demand high staff support, developing waste management and delivery strategies that need limited staff intervention, choosing appropriate technology infrastructure, and reducing overheating.

The report also highlighted the evolution of the Build to Rent sector, with sub-categories like Co-living and Single Family Homes (SFH) gaining traction. SFH residents, in particular, rated their homes higher than tenants in other new build housing developments, with management and facilities being key contributors. This underscores the BtR sector’s emphasis on high-quality management and facilities, leading to increased resident satisfaction.

Design and facilities have been instrumental in boosting resident satisfaction, especially in larger BtR communities with over 300 units, which received higher design ratings. Top-rated communities frequently offer lounges, co-working spaces, gyms, and pet-friendly amenities, underscoring the importance of thoughtful design and comprehensive facilities. Despite consistent price increases, residents believe they receive better value for money, with value ratings rising steadily year-on-year, demonstrating the sector’s ability to meet residents’ needs and expectations effectively.

The BtR sector’s strong 2023 performance suggests a positive trajectory, with record resident satisfaction indicating a data-driven approach that prioritises resident needs. This is likely to be financially beneficial in the long term by attracting and retaining tenants while reducing vacancy rates. The integration of smart technologies and data-driven management can also optimise operations while enhancing resident experiences.

By prioritising resident satisfaction, focusing on quality design and construction, and embracing technological advancements, BtR operators are creating a compelling alternative within the rental market, ensuring strong financial performance and investor satisfaction, and shaping the future of urban living.