BTR – A Data Driven Check-UpJanuary 2020
Consistently attracting and retaining customers is the core requirement for the financial success of the BTR business model. Although the BTR sector has shown promise at attracting new customers, the ongoing challenge faced by providers is the requirement to continually evolve their housing services to repeatedly position themselves ahead of the market as the most attractive accommodation option in the customer's eye. This is no small challenge. Providers are tasked with continually out-innovating more traditional housing alternatives such as private rentals, other BTR accommodation providers and even against the British dream of homeownership, to provide more appealing housing services for the marketplace.
The best way for BTR providers to stay ahead of competitors and ensure long term financial success is to focus efforts on providing home environments that are designed and operated specifically to improve occupants quality of life, so the longer occupants reside, the happier, healthier and better wellbeing they experience.
By focusing on designing and operating homes for a better quality of life, the outcomes ensure prospective occupants are more likely to be attracted to and reside for a longer period; resulting in greater market demand and happier long term residents that lead to better operational and financial portfolio performance.
How Can Homes Be Designed and Operated to Improve Occupant Quality of Life?
The answer is Data.
Most BTR providers actively capture portfolio data which is a fantastic first step. However, through the application of Data Science Analysis, BTR providers can further capitalise on these efforts with a far deeper understanding of how the design and operation of their properties directly influence the health, wellbeing and quality of life of their occupants over time.
When empowered with higher quality Data evidence, BTR providers can better leverage information from their existing properties, extracting aspects most positively associated with better customer health and wellbeing so every future new build development is scientifically proven to perform better than the last.
Why is Data Science needed in Property?
Because Data Science is one of the most accurate forms of scientific methodologies available, it provides high quality, low bias evidence that enable better portfolio decisions to be made. Due to the reliability of the information, Data Science is the process used by evidence-based professions such as the medical, fitness and nutritional industries whereby every decision, recommendation or intervention made is based on a robust body of evidence, derived from Data Science Analysis.
The consistently accurate decision making in these industries is reliant on the quality of the data supporting it, therefore having the highest quality evidence base possible is critical to their long term success. As the operational and financial success of BTR providers is also reliant on consistently accurate decision making, having the highest quality evidence base available to support decision-makers is vital to continually attract new customers by outpacing competitor housing alternatives.
Why is it important to measure the correlation between homes and occupant quality of life?
The true performance of any product or service is how does the product or service (variable 1) influence the health and wellbeing (variable 2) of the consumer over time. In the evidence-based medical, fitness and nutritional industries, the success of every prescription, exercise or diet plan is measured against how it influences the patient’s health and wellbeing.
The true performance of the property is no different. Having an accurate identifier for the exact design and operational aspects which provide the greatest positive and negative impacts on occupant quality of life is incredibly powerful. This not only provides a better understanding of what benefits the customer but identifies the exact service aspects which improve operational performance so money can be better invested for greater returns.
But what does Data Science Analysis identify that normal data capture does not?
Data science is the process of measuring the strong correlation between 2 variables to identify a relationship, therefore it is possible to quantify how any portfolio aspect influences another.
For example, accurately identifying the specific building, property type, size, layout or location of properties that have the best quality of life outcomes. Understanding how specification levels, window sizes, storage or security in homes influences anxiety, stress, relaxation or calmness. Or even how the housing management team relations, building communal spaces, community feel and neighbourly interactions impact occupant health and wellbeing over time.
This evidence is powerful but becomes truly transformative for BTR providers when analysed alongside the operational and financial portfolio performance data, quantifying how the positive and negative health impacts, directly influence the financial performance over 1, 2, 10 or even a 30 year period.
Therefore, Data Science provides complete portfolio clarity as to what delivers best value and benefit to occupants and what doesn’t, so operational spending and new build investment can be streamlined for greater operational and financial benefit.
Geraghty Taylor and LifeProven have recently collaborated to use Data Science Analysis to deliver Evidence-Based Property Consultancy Services (architecture, cost and project management) to help BTR providers deliver better homes with greater accuracy and confidence.
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