Five ways prop tech is revolutionising Build to Rent

December 11, 2019 / Isla MacFarlane
Five ways prop tech is revolutionising Build to Rent

Generation rent are demanding cutting edge solutions to make renting better for everyone, and the Build to Rent sector is answering the call.

It does seem strange that, in times where finding a life partner can be as easy as swiping left or right, the primary need to find shelter has been largely overlooked. However, a new breed of renters expects more, and the Build to Rent industry has put some serious financial muscle behind prop tech solutions to meet these demands.

ONLINE PORTALS

BTR has largely been an invisible force in the property market, with the average renter sporting a blank look when confronted with it. However, the sector is tying up with prop tech companies that can boost its visibility.

Movebubble is one platform that has received significant investment from the sector this year. “BTR is helping revolutionise living for generation rent by creating fantastic communities. It is only right that prop tech helps to showcase this,” said David Metcalfe, Head of Build to Rent at Movebubble. “As an industry we are well aware of BTR, but the majority of renters aren’t.”

Idealflatmate began working with BTR developers a year ago. “Many younger people are renting for far longer, driving a culture of innovation amongst entrepreneurs who have spotted issues with the rental process,” said Tom Gatzen, the website’s founder.

Anne-Marie Brown spotted an issue in the market when clients expressed their frustration at the lack of a search facility for the BTR industry. In October, she launched lovetorent.co.uk, which exclusively lists BTR properties. Lovetorent will also bank data to identify the specific features that BTR customers value most, so better schemes can be built in future.

Brown said: “Build to Rent properties are the future of renting in the UK – and Love to Rent will help ensure they stay at the forefront of what customers are demanding.

“Where the private rental sector stands accused of failing to focus on tenants, Build to Rent developers will have the opportunity to understand exactly what different people in different areas really want from their property.”

DATA

Houzen, which launched two years ago, has also been harnessing big data. It uses an algorithm to find premium tenants fast. “Institutional portfolios lose on average 30-50% revenue just by not leasing fast enough,” its founder, Saurabh Saxena, said. “Our emphasis on speed turns this around – but not at the expense of finding quality tenants.

“Our matching engine considers socioeconomic characteristics and willingness to pay for the ‘added extras’ that BTR schemes provide when pairing tenants and properties. This means that our demographic analysis delivers suitable tenant-property matches, with higher longevity and lifetime value.”

Saxena explained that he wanted to build something similar to a stock exchange, where supply and demand are uploaded and deals close quickly. “Imagine a world where an institutional landlord comes onto the platform and rents properties in real time – in the same way that flights are sold,” Saxena said.

Houzen Data Labs is due to launch next month, so all the data that’s bottled in searches can be used by BTR developers. “We collect data which is becoming a powerful tool for institutional investors,” Saxena said. “What if that property had a pool or a gym? Would a tenant pay extra for that? We have all that data.”

After working with many BTR brands, Saxena believes that as competition increases differentiation will come from customer service. “This is a challenge, because the bigger the developer becomes, the more disconnected they will be from the BTR customer,” Saxena said.

WELLBEING

According to Richard Angel, Co-founder of Angel O’Donnell, there has been a shift towards tech that can genuinely improve the lives of residents, as it is too often used as a mere marketing tool with little or no meaningful benefit.

“One of the main ways we see technology playing a role in BTR is its ability to enhance the wellbeing of residents, as this is such a pressing issue for city dwellers,” he said, adding that Angel O’Donnell is advising developers to utilise building-centric apps.

“These should act as a mini concierge to do anything from booking a repair of the dishwasher through to arranging storage of your groceries in an onsite cold store, or containing a social calendar of events, classes, cinema screenings and gatherings to meet neighbours,” he said.

TRANSPARENCY

Technology can also create trust. Flatfair, dubbed the PayPal of the rental industry, works with many BTR giants who like the premise of its deposit replacement scheme. BTR sells itself on being convenient and professionally managed, and deposit-free renting fits nicely into this space. Franz Doerr, founder and CEO of Flatfair, said: “Technology helps you move away from traditional deposits because you have the ability to track things like never before.

“At the end of a tenancy, the landlord can work out the costs that they believe are owed and upload these to the Flatfair platform for the tenant to approve and then settle, much like a hotel would if you ordered something from room service. On top of this, the technology allows for transparency, where both landlord and tenant are very clear about what’s going on at every stage, and why.”

AUTOMATION

BTR developers have the opportunity to let technology take care of processes so they can take care of people. Lesley Roberts, Partner at Allsop, said, “There is a real focus in Build to Rent on utilising prop tech to automate building processes and administration, creating operational efficiencies and better enabling operators to deliver a seamless service for customers.

“In turn, staff are able to devote more time to enhancing this customer experience and building stronger relationships with consumers. The experiential economy is booming, and prop tech really allows this to be amplified, freeing up time that is better spent on creating human-led, meaningful experiences for customers.”

“Systems that automate time consuming processes are needed more than ever to maximise efficiencies,” agreed Aaron Short, co-founder of Accommodation.co.uk. “There are so many different elements to BTR businesses – from constructing the buildings to offering full lettings and management services – so the whole operation needs to be as efficient as possible. Technology can step in here to make the process much more seamless.”

Analogue is increasingly alien to many of generation rent, who run their lives by tapping rather than talking. As more young people settle into to the rental market, they will keep demanding digital solutions to make them feel at home.

Did you like this? Share it: