There is no doubt that the UK Built to Rent sector has some valuable lessons to learn from practices in the USA. It should be noted, however, that the UK has some pearls of wisdom of its own to offer. In fact, when it comes to Project Management, the UK may be in the lead. This article focuses on the commercial-turned-residential property management practices and value-adding Ancillary Income services that make the UK PM industry cost-efficient and highly functional. Here are three points I’ve picked up in my time over here; US Property Managers, take notice!
Professionalism and Competency in Project Management
At the heart of the UK’s Build to rent success is its foundational approach, deeply rooted in Commercial Office Building Management. This sphere demands unwavering professionalism and competency, setting a high standard that spills over into the BTR sector. The UK’s approach ensures that each modification, no matter how minor, is meticulously managed by a dedicated project team or manager. This culture of detailed, project-based management, birthed from commercial building management, ensures that every project, regardless of size, is executed flawlessly – on time, within budget, and with comprehensive risk mitigation.
Asset Preservation: A Priority in the UK’s Build to rent Sector
UK property managers and owners place an unparalleled emphasis on the preservation of assets, more so than their counterparts in the US multifamily industry. Routine testing and servicing of assets are prioritised to extend their lifespan and maximise value. The meticulous organisation at each property, complete with an up-to-date Asset Register and condition report, ensures that asset maintenance and replacement are planned accurately, guaranteeing budget certainty for future years.
Furthermore, the UK’s use of SFG20 – a definitive standard for planned maintenance – revolutionises property management. This tool not only ensures legislative compliance but also optimises the maintenance process, saving time, money, and energy. Tools like the sophisticated Asset Tracker software ensure that these high SFG20 standards are consistently met.
Ancillary Income: A Frontier for Innovation in the UK’s Build to Rent Sector
Hotel-Style Services: Elevating the Resident Experience
One of the most significant advantages for UK BTR owners and managers is the potential for ancillary income. Unlike the US multifamily industry, where ancillary services are mature but constrained by the REIT ordinary and customary rule, the UK BTR sector enjoys more freedom in this arena. The UK market is increasingly pushing for a broad spectrum of services to differentiate itself from the traditional, lower-standard rent model. This enables property owners to offer a variety of services – from room cleaning to dog walking – enhancing the resident experience, generating additional income, and bolstering the property’s reputation and business image.
The UK’s BTR sector, with its deep-rooted emphasis on professional project management, asset preservation, and innovative ancillary services, sets a sterling example for the multifamily industry globally. It’s not just about managing properties; it’s about redefining the standards of living and maximising value for investors and residents alike.
Embrace the Change with Fjeld Consulting
At Fjeld Consulting, we’re committed to helping you unlock the full potential of your property. From maximising your Net Operating Income (NOI) to exploring innovative avenues for ancillary income, our no-risk model is designed to put your property ahead of the curve. Get in touch to explore how we can transform your BTR or multifamily property into a beacon of efficiency and profitability.