How experiences can shape your products

Creating and shaping your products comes with trial and error. Even with the highs, some lows force you to step back and look at the broader picture. We need this, especially with Build-To-Rent (BTR) developments and Purpose Built Student Accommodation (PBSA). As the UK follows in the footsteps of Europe and the US, it’s essential to provide an experience that tenants want and need.

How experiences can shape BTR and PBSA

Build-to-rent (BTR) was a late-comer to the UK in 2015. The best model of reference we have for BTR is from Europe and the US, where both have created several multi-family units. Their developments feature an all-inclusive living experience, something that more people are now searching for in 2022. On-site facilities such as restaurants, gyms, and technology to manage tenancies are all becoming much more appealing to customers. 

The private rented sector has learned that tenants’ needs are changing – and the 150,000 developments in their planning and development stages, including completed properties, are competing to meet this demand. The industry expects BTR’s worth to grow up to £543 billion, and with the popularity of BTR and its flexibility rising, that doesn’t seem like an unachievable figure. 

However, is copying the same model seen across Europe and the US beneficial for the UK? The structure perhaps is, but in providing satisfactory services and experiences for tenants in both BTR and PBSA developments, you must know what your tenants want. 

For example, BTR and PBSA provide several facilities and other features for the satisfaction of their tenants. Take community, a factor that many people move into BTR buildings for. It sounds great on paper, but many don’t consider critical factors in these buildings’ areas. The tenant demographic, employment rates, income, the physical location of the building and the micro interests of tenants all need to be considered. What will they all have in common that can create a community? 

Design options are essential to consider within BTR and PBSA developments too. Many are designed as modern buildings; though, not everyone will look for a modern living space. Many people want property options catered to their tastes and needs, so not every predesigned space will work for them. Installing a rooftop running track for example would be a very costly feature but how many people will actually use it and what research have you done to prove it? If you have an excellent running club locally and maybe a canal towpath or park next door, do you really need a running track? If you have several cinemas close by, would a cinema room be required?  

When it comes to PBSA specifically, lockdowns have had a significant impact on them. Students had limited use of facilities and were forced to log in online to attend classes or socialise. To combat this new way of living in the pandemic, many operators created a series of live-streamed master classes for students to take part in the comforts of their rooms. Online events don’t need to stay in the past with the pandemic, however. Students and tenants alike could appreciate and benefit from being offered online – as well as offline - events and classes within PBSA and BTR developments. 

It’s clear that when we shape these developments, we need to focus on the experiences of our target demographic. Though taking ideas from previous structures of BTR and PBSA developments are helpful, they won’t apply to all those in your target audience. 

The Management of Creating Experiences

Left to their own devices, tenants can, of course, create their own experiences. Communities have been doing this for thousands of years without any management. However, when you are paying a premium for a rental property, the expectation is that there is an element of ‘organised fun’ included. There needs to be someone or a group of people responsible for this. This veers into event management more than operations, so, ideally, those involved will have the expertise to collaborate with residents to curate the perfect range of events. There is a cost to creating and managing events, not to mention the time in organising, promoting, managing and customer communications.

How we can break the mould of BTR and PBSA developments

What’s important to remember is that it all comes down to researching the data of your demographic. That way, you won’t be guilty of providing experiences that the audience don’t want or need and can create spaces that tenants will be satisfied with. 

We can take examples of how renting has changed during the COVID-19 pandemic. Those letting properties in the sector know that tenants were looking for properties with a study for working from home, outdoor spaces, and even flexible tenancies. These new factors of tenant behaviour are changing up how properties are being let out and designed. 

Taking a step back and looking at tenant behaviour and what they’re looking for most in their property is key to shaping BTR and PBSA. By doing so and looking at your demographic’s wants and needs – whether those are coworking spaces, gyms, or even supermarkets – will inform you best on how to shape your product. 

If you’re interested in how your target demographic can shape your product, don’t hesitate to get in touch.