Bringing Facilities Management In-House

By Dustin FjeldPublished On: September 7th, 2020Tags: Build to Rent, Centralised Purchasing, Facilities Management FM, PBSA, Private Rented Sector, Property Management, PRS, Purpose Built Student Accommodation

The UK’s Build-to-Rent (BTR) sector is experiencing an unprecedented surge, marking a transformative era in the property market. With over 152,000 BTR properties, including those in the planning phase, this burgeoning sector is anticipated to attain an astounding market valuation of approximately £544 billion at full maturity.

This growth trajectory is not just a statistic; it embodies a plethora of opportunities for professionals in the BTR arena. The potential for expansion is immense, yet it also underscores the nascent stage of the UK’s BTR market. When juxtaposed with mature markets like the US, where the BTR sector boasts a staggering value exceeding $2.9 trillion (as of 2018), it’s clear that the UK market is poised for significant evolution.

Traditional PRS outsourcing methods have issues and aren’t the most cost-effective way to run things. Introducing in-house facilities management provides a more stable long-term solution that can vastly improve the UK BTR sector as it continues to grow. By implementing Centralised Purchasing and a strong in-house FM team, managers can reduce their costs and make their scheme a more profitable venture.

Traditionally, PRS facilities management in the UK has been a fragmented landscape, often involving multiple external entities. This disjointed approach not only complicates coordination but also burdens residence managers with the daunting task of maintaining safety and cost-effectiveness. The pitfalls of such a system are evident – a reactive, rather than proactive, approach to maintenance, often culminating in suboptimal, short-term fixes.

However, the landscape is evolving. BTR’s in-house facilities management is gaining traction, heralding a paradigm shift towards a more strategic, asset-centric approach. This model fosters a deeper understanding of the property’s needs, encouraging solutions that are not just immediate but sustainable and cost-effective in the long run.

For instance, instead of replacing a frequently malfunctioning CCTV camera, an adept in-house team might identify and rectify the root cause, be it a defective wire or an inadequate Wi-Fi connection. This not only mitigates the immediate issue but also prevents future recurrence, exemplifying a strategic, foresighted approach.

The private rental sector has been subjected to these operational methods for years. BTR and in-house facilities management can offer a better solution.

From our own data on maintenance, we know many of the issues residents have are based around their individual living spaces. Being able to solve the problem quickly not only reduces the number of steps it takes to fix, it vastly improves customer service. This can lead to the resident being more likely to re-sign at the end of their tenancy agreement.

Fjeld’s Strategic Edge in Facilities Management

As the BTR sector in the UK gravitates towards more sophisticated, in-house facilities management models, mirroring the operational excellence seen in the US, Fjeld stands at the forefront of this transformation. Our extensive experience in the US BTR market equips us with unparalleled insights and proven strategies to enhance operational efficiency and cost-effectiveness.

Our Centralised Purchasing consultancy is a testament to our commitment to operational excellence. We don’t just facilitate bulk purchasing; we strategically engage with suppliers to harness economies of scale, translating into substantial cost savings and operational synergies for our clients.

Our track record speaks volumes. From redefining facilities management strategies to achieving substantial cost reductions, Fjeld has been instrumental in reshaping the operational frameworks of BTR operators across the UK, Europe, and America. For instance, our strategic facilities management intervention enabled a client to slash the expense ratio of a significant property from 35% to an industry benchmark of 25%, unlocking annual savings of £400,000.

Embrace the Future with Fjeld’s In-House Facility Management Expertise

The journey of transforming the UK’s BTR market is complex yet promising. With Fjeld’s expertise, BTR operators can stop searching for facilities management news and navigate this landscape with confidence, leveraging our strategic insights and proven methodologies to unlock operational efficiencies, cost savings, and sustainable growth.

Intrigued by the potential of in-house facilities management? Fjeld is your strategic partner in this journey. Our deep-rooted expertise, gleaned from years of shaping the US BTR market, positions us uniquely to guide you through this transformative journey. Reach out to us, and let’s elevate the UK BTR market to new heights of operational excellence and market leadership.