In this first article, Sebastian Moritz, Director of MORICON, will look at ways to meet rental demand in the UK, explain what causes the undersupply, and highlight possible solutions. MORICON Consultants shares thoughts on the Build to Rent market in the UK over a series of 5 short articles. The topic was part of the IRPM Build to Rent Level 4 course assignment and reflects only the authors’ opinions. 1. Meeting Rental Demand in the UK In February 2017, the British Property Federation published a widely reviewed report on unlocking the benefits and potential of BTR (Build to Rent) for the UK Housing market[2]. The paper highlighted a range of measures undertaken by the government, local authorities, and the private sector to ensure steady growth in the housing market in support of the failing house-building targets. In 2020, the BPF (British Property Federation) reported that 43,236 units are complete, 33,505 are under construction, and 80,771 are in planning, for a total of 157,512 units[1] – well short of the envisioned target of 200,000 units. 1.1. What are the main issues for undersupply?
Residential Business Continuity Planning: The Good, the Bad and the downright Ugly
What is BCP? Residential Business Continuity Planning (BCP) is commonly defined as “…the process of creating systems of prevention and recovery to deal with potential threats to a company”. In addition to prevention, the goal is to enable ongoing operations before and during execution of disaster recovery. BCP is a subset of risk-management and deals with your organisation’s resilience to function in the face of adversity. The approach is common practice for major global companies across a variety of sectors – especially in the IT sector, financial institutions and companies that manage a complex network of supply chains and data or hospitality organisations such as Four Seasons Hotels or Marriott International – they all have a range of diverse BCPs in place, national or regional risk management committees etc. But, how does this relate to the real estate industry? Do all the managed buildings for PRS or B2R follow the same best practises? Are you ready? In view of the global CORVID-19 crisis, how does the resilience planning and preparation in PRS/B2R sector feature, how well is your organisation prepared to deal with this threat – on local level as well across your organisation? What have you done to pre-plan for your staff and customers to continue to enjoy a safe environment when faced with adverse and dangerous situations – are you prepared or helpless? Let us have a closer look at what is the importance of BCP and what are you potentially missing out on? As the threats can change based on your location there is not a one-fits-all approach, but you can start thinking about what could go wrong and start the process. Business Disruptors The most frequent disruptors for your business are the obvious ones: · Cyber attack · Random failure of mission-critical systems · Data corruption · Sabotage (insider or external threat) · Earthquake · Single point dependency · Epidemic · Supplier failure · Fire · Telecomms outage · Flood · Terrorism/Piracy · Hurricane or other major storm · Theft (insider or external threat, vital information or material) · IT outage · War/civil disorder · Power outage · Water outage (supply interruption, contamination) Whilst some of the above might not immediately jump out, think across your organisation – do you have assets that could be impacted by earthquakes or floods? For example, recent meteorological events in the UK suggest that flooding and strong winds will become more and more a two to four year reoccurrence – irrespective of you believing in global warming or not – your organisation faces a real threat with reputational and financial consequences. Or think of 2011 – civil unrest in most parts of England following the death of Mark Duggan – did you think it possible that your business is interrupted by riots? Fluidity of Business continuity Planning The crucial element in BCP is to maintain fluid in your planning approach – as life changes all the time, so does needs your planning – the need to remain agile in the heart of your preparations is paramount; to counter-act all possible changes, regular and meaningful reviews as well as training are part of it, similar to a targeted procurement plan for first hour responses (flashlights, blankets, high-viz clothing etc.) If your business has a BCP framework, you will typically have an annual or 6-month cycle of “BCP maintenance” for each of the scenarios: Confirmation that all the information in the manual is valid (such as addresses, phone numbers, processes etc.) and training across the organisation/business unit to staff or critical individuals is done – and documented Testing and verification of your solutions to the threats and mitigation measures Testing and verification of the recovery operations of your organisation Any deviation / change to the original process must be analysed, documented and implemented. This part is vital to ensure that your BCP is a “living and active” document and not a painful corporate initiative that is relegated to the bottom shelf as soon as possible, in order to tick a box or to make time for more pressing issues. The Good A good organisation would have a range of scenarios identified as threat to the business, complete with the appropriate measures to bounce back in due course. Plans are implemented and trained throughout the business and rehearsed, re-trained and re-calibrated at least once a year to guarantee functionality. In case of a scenario the planned response is initiated without delay and struggle, the entire organisation is pulling in one direction to prevent a major loss for the business. The Bad The bad way is having some sort of plan in the beginning, but over time this is not made a priority and therefore most of the content is outdated and obsolete. In case of adversity the organisation is depending on few individuals that are alert and in key positions to “muddle through” the crisis, whilst accepting that there will be a felt impact on the business – be because of financial loss, damage of goods and installations etc. The Ugly The ugly scenario is – well, you guessed it: there is no BCP planning, your employees are not trained and are likely to panic and your fate hinges on the luck of having a few individuals that may keep things together until the crisis is over. You can assume greater financial losses, loss of reputation- and in the worst-case, severe damage to your business and/or loss of life of team members or customers. I don’t think that in today’s environment you can let chance decide about your business’s reputation and survival by not having a planned resilience approach. Conclusion I have worked on several BCP projects – specifically for hotels and residences. Being IOSH[1] trained, I am fully qualified to write risk assessments. I am very familiar with the creation of BCPs and can assist your business with the planning of your specific threat mitigation processes. My hospitality experience combined with property management knowledge enable me to adopt a very varied
How to best manage your company’s Home Views Rating
How to best manage your company’s HomeViews Rating Like buying a car, buying or renting a home/apartment is one of the most expensive and far-reaching decisions you will make; until now, there was a massive imbalance when buyers went about their decision – the car industry honed over decades a myriad of ways to inform about models, makes, performance and other metrics and all of this is readily available via printed or online publications. Until now, deciding on a home has been very trying; you needed to visit the place, make inquiries, rely on agents’ feedback, etc., and were never as informed as you wanted. Since February 2019, this has received a massive boost from HomeViews – an online dating service, with feedback published – similar to hotels – by tenants, sharing their views concerning location, facilities, management, design and value. Those metrics are obvious to prospective tenants and buyers and give a fair amount of information from the community living at such properties. This is a game-changer, similar to the advent of Tripadvisor for the hospitality industry – since its introduction in February 2000, the site has published over 760 million reviews of restaurants, hotels and attractions and has 490million visitors that post 270 reviews per minute – wouldn’t you say this is powerful stuff? If the Home Views reviews are positive and your organisation has met the expectations and delivered a positive experience, all is well – but what happens if that is not the case? Negative reviews are seen by thousands of potential customers influenced by reviews and how they are reacted to. You, as a landlord, should answer any reviews to mitigate further publicity issues; this requires a new way of thinking: your response is on one side, addressing the problems at hand but is also communicating your brand values and ethos (i.e. how you deal with “stuff”) to a broader audience. Responding to HomeViews comments pays: Research released mid-December 2019 from Ipsos Mori in partnership with TripAdvisor has revealed that customers are more likely to book after seeing owners react to online reviews. A poll of 23,000 travellers and diners worldwide showed that 63% of respondents said they would be more likely to book a hotel or restaurant if the owner responded to most reviews. When a property owner leaves personalised responses to reviews, over three-quarters (77%) of TripAdvisor travellers said they are more likely to book. Even among respondents who stated they tend to focus less on online reviews, over half were still able to book if the owner responded to reviews. Over two-thirds (67%) of respondents agreed that they find it helpful when they can see the context of negative reviews and apologies to guests from management. In this new residential model, the primary source of revenue is the individual resident or customer generated through rent and services. This places BTR firmly in the consumer market culture, where keeping the customer happy and loyal is critical to securing ongoing revenue. In good BTR schemes, the customer is central to design, operational and income generation dynamics. MORICON Consultants Ltd. can help landlords not only to finetune their operation, but also to optimise their tenant’s score via HomeViews and create a more positive brand image: • Root-cause analysis of issues through a detailed review of tenant comments. • Detailed audit of standards or creation of new standards – based on extensive hospitality knowledge to streamline front and back-of-house operations. • Review of existing customer complaints processes. • Interviews with tenants to analyse existing complaints. • Training workshops for your concierge team. • Guidance in response writing based on your communication brand standards. • Creation of benchmark operations standards to underpin your business