Have you noticed large apartment blocks going up around Manchester? They may be Private Rental Sector sites.
Well, the majority of these are owned within the Private Rental Sector (PRS). Currently there are 12 skyscrapers of more than 30 stories with the tallest being 66 stories in height. There are over 10,000 apartments due to become available over the next five years.
A large amount of these are what we (our industry) call PRS. This means that the building will normally be fully rented out to people wanting to live in Manchester but not wanting to own.
Ownership of PRS can vary. Some are owned by one company totally or through entities such as pension funds. Others may have the apartments owned by individuals but then rented out by the company managing the building having been bought purely on this rental model.
Some schemes offer rent guarantees to purchasers for periods of time, but always do your homework to make sure these are sustainable if you are buying into a PRS.
The principle behind these developments is that they are normally large (400+ apartments) and offer more hotel like services such as concierge, gym, coffee shops, etc. The aim is for the building to create a lifestyle for the renter rather than purely a home.
So if you are a landlord now of one or two apartments what should you be doing if you don’t have concierges or gyms in your buildings? Are you going to lose your tenants to these sites? Well, in truth some will but tenants move on anyway. You need to keep your apartment fresh and modern to stay ahead of this new competition. Don’t forget you need your managing agent to do the same for the communal areas. Maximise on the strengths of your apartment, location, size, parking, etc.
There will always be people who only want to live in this PRS lifestyle bubble and more likely than not you may not have been attracting them anyway. There are loads of new tenants who desire to live a quiet life or need more space or simply can’t see themselves in a PRS.
Also gain yourself a good estate agent now and work on your relationship with them over the coming years to keep your property and you at the front of their minds.
Manchester is the best and people will always want to live in Manchester. As a current landlord know who you’re aiming at and make your apartment fit that market. If you get your product (apartment / house) right then you should have little to fear.