Manchester-based Build to Rent specialist, Ascend, reported ‘outstanding’ income increases for their client on the latest BTR fund it manages for Gatehouse Bank.
Having successfully migrated the 1,000 homes, the company is set to continue maximising returns on its BTR platform.
With a BTR property portfolio comprising two, three and four-bedroom houses across the North West and the Midlands, Ascend has identified opportunities for rent reviews, effectively delivering greater yields.
This was achieved by extracting data from online sources, which was cross-referenced against the company’s own market intelligence.
So far, the rent on just under half of the properties included in the portfolio have been renegotiated, resulting in over £300,000 blended revenue increase. Rent rises on brand-new tenancy agreements are up 14%, alongside a 4% uplift in rent for renewals for existing residents in line with market rates.
This translates into an 11.5% increase for two-bedroom BTR properties and a 9.1% premium on three-bedroom properties.
The BTR specialist has also used its platform to reduce rent arrears by 25%, using market-leading tenant profiling to ensure only reliable payers are accepted.
In line with this, Ascend has grown its team to a 90-strong unit, with significant investment in its dedicated BTR asset management department. By 2022, the firm expects to grow the number of BTR properties it manages to over 10,000.
“Build to Rent is a primary focus for us moving forwards and it continues to present fantastic opportunities for the growth of our company,” says Ged McPartlin, managing director of Ascend.
“The results we have secured to date reflect our expert knowledge of the sector and showcase how we’ve embraced innovative prop-tech platforms to help drive efficiencies.:
He adds: “Our expert team’s substantial branch presence in key locations, such as Manchester, Liverpool, Salford, Leeds and the Midlands, is grounded by strong in-house capabilities, which give us a competitive advantage. We look forward to building on these robust foundations to further grow our BTR portfolio into 2020 and beyond."