PRS is such a misleading accronym - I have taken it to refer to 'new built rental flats in the private sector with institutional investment', but clearly it means different things to different people. Journalists use it to cover the whole of the private rented sector and they are right to do so. However when talking about specifically the build to rent sector we will not want to be tarred with that brush which at the moment is largely reported on negatively and is even seen as a pejorative.
In the USA they talk about 'multi-family apartments' and this is perhaps closer to the truth but I don't think it suits the UK. What about PBR - Private Build to Rent? Any better ideas? Let me know.
And who will manage this growing opportunity? Whilst there are a few specialists, there remains a woeful lack of expertise in pure residential asset management in the UK. The real experts are housing associations and they have been quick, particularly in the South-East, to make a claim to this space. Another solution comes from US based experts with a long track record in the provision of purpose built to rent management.
I do, however, honestly believe that residential managing agents are likely to have more of the asset management skills in house than most of the solutions currently being offered. Complex buildings require specialist professional property management skills and long term capex plans if they are to work for institutional investors. High end rented buildings need to be constantly refreshed to stay competitive in what is becoming a fierce market and they need to be appealing to a new generation of people who see renting as a viable long term, flexible option. That means that a strategy that concentrates on real efficiencies and a 'right first time' approach must be applied contantly if schemes are to remain successful.
Modern buildings are complex and require real understanding of specific M&E and modern methods of heating, cooling and lighting, as well as access control, security and ultra high speed broadband and site staffing.
Value added scheme based services such as parcel collection, grocery delivery, reactive maintenance and laundry services, residents portals and myriad others must present a real opportunity for entreprenuers.
We should not be fooled into believing that the commercial property sector will provide a solution to this new opportunity - residential management is not like commercial management. Business to Customer (B2C) delivery requires a particularly customer focused approach that will be painful for those businesses to absorb.
Finally a ‘Build to Rent’ Use Class would usefully deter investors from simply retailing units after a few years by creating leases should they not deliver. That would be disastrous in my opinion for reputation and development of the confidence of local planners and, ultimately, renters.
