build to rent: management perspective

15 April 2014

Build to RentManagement Perspective

All information, concepts and images are intellectual property belonging and copyright to Chainbow©

Overview

1. About Chainbow2. Design Considerations3. Management

- estate- apartment- asset

15 April 2014

CHAINBOW


Chainbow

Overview– Founded in 1989 as a retail

investment management company

– 2006 moved into residential– 2012 repositioned to combine

experience under the PRS umbrella • Asset and estate management• Consultancy• Build to Rent fund


Chainbow

PRS TeamRoger Southam BSc(Hons) FRICS FIRPM• 30+ years asset & estate management and development• Retail, mixed-use and residential asset investment and

management• United Kingdom, Germany, Hungary, Poland and Czech Republic

Jeffrey Pym BSc(Hons) ACA• 23 years Chartered Accountant PQE• 18 years Real Estate Finance Director• United Kingdom, Europe and Brazil• UK and International tax structuring

Nigel Bosworth LLB(Hons) MARLA• 15+ years lettings & property management• Residential, buy-to-let, serviced apartments, corporate

accommodation• Global private client and UK institutional client work


Chainbow

PRS experience– Working on behalf of a fund

since 2011• Apartment, estate and asset

management • Acquiring leaseholds for private rent• Success includes

– turning the asset into profit– 132% rental income increase within

first two years– Average 93% occupancy throughout

2013– Stratford Halo Consultancy

15 April 2014

DESIGN


Design

Architecture and layout– Effective management begins with a building’s design – Key to eliminating gross to net leakage– B2R must be scalable ~ economies of scale– Lifts must cater to the number of units within a tower.– Back office space

• Parcel storage, office, cleaners’ area– Different lift/core structures– Loading bays


Design

Attributes– Halls and walls wide enough for sofas, window pane

replacement, bath tub replacements– Sound insulation between apartments– Convenience- easy access to bike storage, bins– Rooftop terrace can be more widely used, easier to

maintain and save on build costs than individual balconies

– Less complex the façade and layout– Efficient building methods – Plain walls so tenants can personalise– Splitable spaces

15 April 2014

MANAGEMENT


Management

Integrated Management• A professional PRS model will integrate lettings, estate

and asset management that is the financial performance and viability of a development


Management

Estate • All residents should be able to access all entry points

into an estate• Concierge

– the most important feature in a PRS development – contributing factor to a tenant staying in a building, if

they go above and beyond standard expectations• Friendliness and tone• Security• Package delivery and collection efficiency• Tailgating • Prompt response• Action and follow-through• More cost effective (especially considering third party commissions)


Management

Estate– Meeting points to create a sense of community and

neighbourly bonding– Regular maintenance from day one– Turn-key packages – Bulk supply ordering and holding stock – In-house employment rather than contracts


Management

Apartment• Customer service is key for securing, then retaining tenants• Pricing models should be flexible but realistic• Permanent show apartment• Communication through portals• Must use in-house agents


Management

Asset– All income and revenue measured against expenditure– Future projections (earnings and expenses)– Risk assessment – Adopting and implementing long-term maintenance

plans to avoid degeneration and uphold aesthetic appeal.


End

Questions?

build to rent: management perspective

Documents