PBSA, Coliving, BTR, SFH, Multifamily: Understanding the Expanding Classifications of Managed Accommodation in the Private Rented Sector
Property remains a critical sector.
Shifts in pricing, housing stock, and development profoundly affect residents and their surrounding communities.
The Private Rented Sector (PRS) continues to be a significant real estate type, housing a considerable number of individuals. After some fluctuations in recent years, the numbers seem to be on an upward trend.
At its core, PRS involves a landlord (whether an individual, company, or investor) leasing a property to a tenant. However, as this sector has developed, it has seen the introduction of new housing categories and terminologies: PBSA, BTR, Coliving, SFH, and later living, all under the PRS umbrella.
Navigating these terms can be tricky. At The Property Marketing Strategists, we're dedicated to clarifying these classifications and exploring whether there is a collective sector/community for networking and collaboration. Crucially, these terminologies often mean little or nothing to the customer.
Purpose-Built Student Accommodation (PBSA)
PBSA refers to residential buildings specifically designed for students. This accommodation ranges from 3 to 8-bedroom cluster flats to studios and one or two-bed apartments, catering to both undergraduates and postgraduates.
PBSA can include both on-campus and off-campus varieties. On-campus refers to housing located on or close to the university grounds that is operated by a private operator, generally dedicated to the host university's students. Off-campus accommodation, conversely, is situated outside the university grounds, often housing students from various institutions.
Over the years, the PBSA sector has grown substantially. Most modern student accommodations offer ensuite rooms and compete in providing top-tier communal spaces, aiming to enhance the overall student experience.
Build to Rent (BTR)
BTR, a PRS asset class, refers to properties built explicitly for renting. These are typically vast complexes with at least 50 homes under single ownership. Its significance has grown, partly due to factors like rising house prices altering homeownership trends. BTR developments often incorporate communal facilities like gyms and gardens to entice potential renters. A key feature of BTR is flexibility, appealing to those who favour home-working or a nomadic lifestyle.
Coliving
Coliving, while reminiscent of student accommodation, targets a broader demographic: digital nomads, graduates, young professionals, and apprentices. It emphasises community living, where individuals have private bedrooms but share common areas and are encouraged to actively participate in community activities. Social spaces are typically designed for smaller cohorts, such as those within a flat or a floor, rather than being large communal areas on the ground floor for the entire building.
BTR vs. Coliving
The lines between BTR and Coliving are increasingly blurred, especially as more Coliving schemes in the UK offer studio apartments, which resemble the BTR model. Typically, BTR involves renting entire apartments, while Coliving offers shared living spaces, much like Houses of Multiple Occupancy (HMO). However, Coliving places a stronger emphasis on fostering community engagement.
Multifamily BTR
This term, more common in the U.S., refers to buildings with multiple separate housing units. BTR and Coliving are essentially variations of multifamily housing targeting renters.
Single-Family Homes (SFH)
Single-Family Homes (SFH), sometimes referred to as Single-Family BTR, is an emerging market within PRS. It involves housing developments specifically for renters, managed by a single management company, but without the shared communal areas found in typical BTR developments. The term 'single-family' can be somewhat misleading, as it does not necessarily imply a traditional family structure. This asset class accommodates a range of renters, not just families, and should not be confused with single-parent connotations
Later Living (Senior Living)
Later living, also referred to as senior living, is another emerging PRS asset class. It offers retirees the convenience of renting in vibrant, active communities within state-of-the-art retirement villages. Unlike traditional retirement living, which has typically been associated with buying rather than renting, later living focuses on creating active communities for the younger demographic of older adults. Additionally, care homes cater to those requiring extra care, whether they are buyers or renters. As the market develops, it will be interesting to see how this segment evolves. You can read more about this in our interview with Honor Barratt.
A Unified Community Perspective
At The Property Marketing Strategists, we believe community is the unifying theme across these PRS asset classes. A term emerging across Europe is PBSL (Purpose Built Shared Living), which encompasses what it means to live in a community that supports and engages its residents to connect. Whether it's PBSA, BTR, Coliving, or later living, the emphasis is on creating a sense of belonging and community with the peace of mind of security and flexibility as a tenant. It's not just about renting homes; it's about selling a lifestyle.
We aim to foster this "Community PRS" sector or PBSL, helping them grow, connect, and evolve together. Beyond bricks and mortar, it's about promoting lifestyle, community, and belonging. This branding and reputation can lead to longer rental periods, repeat business, and organic marketing.
Our recent Property Marketing Survey indicated diverse sector identifications among participants. The collective benefits of learning and networking in the sector remain untapped. By promoting knowledge-sharing and collaboration, we aim to drive the Community PRS sector forward. At The Property Marketing Strategists, our mission extends beyond marketing support: we create platforms for networking and gaining insights.
For more information on marketing your properties, whether PBSA, BTR, or later living, please contact us.