American-style “multi-family” renting could soon arrive in the UK after a conference held by a US property trade body in London.

The National Apartment Association said it was pleased with the success of its first conference in the UK, and plans to establish a presence in the UK and run further events.

Multi-family is comparable to the institutionally-backed build-to-rent schemes starting to emerge in the UK via brands such as Be:Here, Essential Living and Fizzy Living.

Countrywide (see today’s top story) has also entered the build-to-rent sector.

A key difference is that the American multi-family style of renting is a much more advanced and far longer-established model, offering major business opportunities to management companies.

Another is that multi-family schemes are often all about tenants with very similar interests or occupations – for example, they might all be actors, people with dogs, or people working from home.

The conference was attended by over 300 UK property professionals.

Emphasis was placed on how much more evolved and professional the rental housing market is in the States.

Unsurprisingly in the US service-driven culture, brand and customer service are two of the most defining aspects of the multi-family sector.

As in the UK, the US rental market is flourishing, with home ownership slightly decreasing to around 64% of the population.

There was discussion of the term ‘private rented sector’ and whether the name ‘multi-family’ would ever catch on here in the UK.

Key features and differences of the northern American multi-family sector really caught the conference’s interest.

Here are some key points:

• What really stood out to the British audience was the sheer range and variety of resident facilities available in US schemes. Fitness rooms and pools are a given, but rental developments in the US have all sorts of extra amenities from wine rooms and bike workshops, to pet spas and doggy daycare. Central club areas offer sociable communal spaces and a wide range of resident events are on offer from wine and cheese evenings to ‘yappy hours’ for pets and owners.
• All of these amenities and services essentially come down to convenience for the resident. In the US, where people usually have to get in the car even to go to the nearest shop, there is a strong emphasis on offering amenities on the doorstep and creating a warm community where residents feel at home and want to spend their leisure time.
• Many developments have a tech café with 24-hour access for residents offering higher speed wifi, printing facilities and refreshments. These have become more popular with the increase in numbers of people working from home, offering them a change of scene from working inside their apartment.
• The on-site concierge is usually available during business hours and a range of additional services are typically available including dry cleaning, valet car parking and ‘room service’ food, provided by an on-site restaurant. High levels of customer service guarantee that issues such as maintenance and repairs will be dealt with within a certain timeframe.
• Apartments are usually let unfurnished in the US but operators often offer a furniture rental service. This is supplied by a third party furniture rental company, but offered as an extension of the property management company, giving tenants the option of renting furniture without the landlord having to invest in buying it. In the US, CORT is the market leader and here in the UK its subsidiary Roomservice by CORT, is already working with a number of operators.
• Due to the need for transparency in the North American market, a common enhancement adopted by most professional property managers and owners is a revenue management system. These systems are designed to maximise revenue by updating rents on a daily basis.
• Whereas in the UK properties are valued when empty, in the US the rental value of the property is set based on market demand and income achieved. The average lease is set for 12 months, as the property management company wants a break in the agreement so that they have an opportunity to review rents for potential increase at the end of each lease.
• The model widely being rolled out in the UK rental market is for all costs to be included in one monthly bill, whereas the US model is to charge for everything, providing itemised billing for ancillary items such as pet rent, utilities and parking. In addition to potential additional income, this method can have benefits including a positive environmental impact, as when people pay for their own utilities, consumption goes down by 25%.

For further information and to view speaker presentations from the conference, visit the National Apartment Association here