Although PRS is nothing new to several overseas markets, particularly those in the USA and Germany, it is an unfamiliar model to the UK market. Effective management is central to its success.
Service delivery to tenants is vital to the success of a building as a successful ongoing PRS proposition. In simple terms if tenants are happy they are likely to stay longer and to pay more rent and conversely the opposite is true. Tenants need to feel that they are receiving value for money and a good service.
To provide an effective management service that achieves this aim is more labour intensive than the management of a traditional “built to sell” residential development and levels of service must necessarily be much higher. If approached correctly these higher levels of service will benefit tenants and investors alike as it will become a good place to live and the positive reputation of the building (as being well managed) should result in higher eventual resale values. Brunsfield is adept at striking the right balance between service levels and cost. There are no short cuts to managing a building effectively and we believe that significant effort needs to be put into such matters as the recruitment of the right building staff and getting the best value service contracts.
We believe that the integration of the service charge management with the management of the lettings also allows the building to be run more efficiently and effectively with one team under the same structure able to easily communicate with each other and the tenants. Finally the key to successful PRS management lies not only in effective budgeting and cost management but good communication with the residents. Ultimately the service charge needs to underpin a building where people will want to live and, crucially, where people want to stay. This means creating a strong on-site team who listen to residents and communicate with them through face-to-face meetings and social media. This team should be tenant-focused and offer practical assistance and even help publicise social events, where appropriate. All of this encourages a sense of community which results in tenants staying longer thus reducing rental voids and tenant turnover.