PBSA, Coliving, BTR, Multifamily: Understanding the Private Rented Sector's Expanding Classifications
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, multifamily, and senior 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 if there's a collective sector/community for networking and collaboration. And crucially, these terminologies 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, are 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. As a result, BTR developments often incorporate communal facilities like gyms and gardens to entice potential renters and significantly for renters, can be flexible – jumping on the home-working and digital nomad trend.
Co-living
Co-living, 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 expected to contribute to the community.
BTR vs. Co-living
While both offer rental spaces, BTR typically involves renting entire apartments, whereas Co-living offers shared living spaces, reminiscent of Houses of Multiple Occupancy (HMO) and suits the customer that actively chooses to be part of the community lifestyle.
Multifamily BTR
This term, more common in the U.S., refers to buildings with multiple separate housing units. BTR and Co-living are essentially variations of multifamily housing targeting renters.
SINGLE-family BTR
This emerging market refers to housing developments specifically for renters so in this instance there wouldn’t be shared communal areas but they would still be renting from a single operator.
SENIOR LIVING
Another emerging PRS asset class is senior living. It offers retirees the convenience of renting in retirement villages with state-of-the-art facilities and active communities.
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) a term that encompasses what it is to live in a community, which supports and engages its residents to connect. Whether it's PBSA, BTR, Co-living, or senior 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 senior living, please contact us.