The prospect who rents an apartment and the prospect who rents a build-to-rent (BTR) unit are different in at least one respect—and it’s a big one: The BTR tenant tends to be a renter by choice.
Adjust your management process accordingly.
That’s been Kaycee Kisling’s experience.
“We get a lot of renters by choice in the BTR product, with a higher household income, so they do expect you to be very responsive,” says Kisling, managing director of multifamily investments Mark-Taylor Residential.
Mark-Taylor Residential serves the Greater Phoenix market, which has seen a BTR boom in recent years. The company currently manages 4,500 BTR units.
“When we started with BTR, demand was exorbitant,” Kisling says. “They couldn’t build them fast enough.”
While demand remains strong, BTR faces stiff competition from traditional multifamily properties that dominate the market. That’s why you’ll find BTR communities today with fitness centers, lazy rivers, putting greens, and sprawling parks. And the houses have become more sophisticated with high-end finishes and smart technology.
With greater amenities comes higher expectations.
Here are Kisling’s three tips for managing BTR properties.
1. Be Super-Responsive
BTR is an attractive option because it offers all the benefits of living in a single-family home minus the maintenance hassle. So, when something needs to be repaired or addressed, these clients expect a fast response. Thankfully, there are several tools property teams can use to address needs more urgently.
AI chatbots: No, that’s not another human on the other end of that chat. That’s artificial intelligence, and it’s continually being refined to provide accurate and immediate responses to resident inquiries. “It’s learning a lot,” Kisling says. “We’re putting in a lot of time and effort into making sure it has accurate information, so you get immediate responses that don’t feel boilerplate—that feel customized to the renters’ experience.”
Third-party troubleshooting: For maintenance issues, Kisling partners with a platform that helps clients troubleshoot basic maintenance requests before a technician needs to be sent out. Not only does this potentially solve the problem faster, but it also saves on manpower. Plus, teams can conduct digital inspections, track work orders, and manage assets more effectively, streamlining routine tasks. You can even schedule to have an air filter delivered to a clients’ door.
2. Target Potential Home Buyers
Renting a BTR is an attractive alternative to homeownership. But BTR is a newer product. Potential home buyers might not realize it’s an option. That’s why Kisling markets BTRs using the same channels as Realtors, such as Zillow. It’s a strategy to reach a broader audience that might not initially consider this type of rental.
Kisling also stresses the importance of keyword strategies in online marketing. By carefully selecting keywords, they can target renters who might be searching for a home in a specific market but aren't necessarily looking for an apartment or a traditional rental. This approach helps bridge the gap between those searching for a home to buy and those who might consider renting a BTR property as an alternative.
“We’re trying to reach a renter that might not know that they’re looking for BTR,” she says.
3. Create Community
Kisling emphasized the importance of retention in managing BTRs, particularly as inflation impacts the cost of turning units.
Retention isn’t just about offering competitive renewal terms. Instead, it's about ensuring residents feel a sense of community throughout their stay. This involves proactive communication, regular resident engagement activities, and making sure residents feel connected and valued.
“Retention efforts start from the day residents move in,” she says.
Transitioning to BTR
For multifamily property managers considering a move into the BTR market, Kisling emphasizes the skills and knowledge gained from managing multifamily properties apply to BTR. Understanding the renter's psychology and catering to their needs is key to success in any property management endeavor.
Kisling’s advice is clear: “Don’t be afraid of it.”
