Resitality and hotelification will define future suburban BTR
Build to Rent (BTR) has come a long way since its inception, evolving beyond its urban roots to embrace what we at LRG Group refer to as BTR suburban communities (aka SFH or suburban BTR). As it does so, the sector is increasingly drawing inspiration from the hospitality industry. This shift is redefining the BTR landscape, offering not just homes, but a seamless, service-led lifestyle that meets the evolving needs of modern renters.
The concept of ‘hotelification’ refers to the adoption of hotel-like services and amenities within other real estate sectors, particularly residential and office spaces. It embodies the move towards high levels of service, convenience, and flexibility, with features such as concierge services, on-demand maintenance and shared lifestyle amenities becoming the norm. In the context of BTR, hotelification is transforming the traditional rental experience, enhancing customer satisfaction, and driving long-term tenant retention.
Resitality is an evolution of hotelification, blending the best aspects of residential living with the service-oriented approach of hospitality. It goes beyond simply providing hotel-style services in rental properties; it integrates a community-focused approach, elevating the rental experience to a fully managed lifestyle offering. This means that BTR suburban communities are not just about providing high-quality housing but about fostering communities where residents enjoy premium amenities, flexible living arrangements and a high standard of service without the complexities of homeownership.
Fostering community bonds
The application of resitality principles is particularly relevant as BTR expands beyond city centres into suburban and semi-rural locations. These suburban BTR communities cater to a demographic shift: the Millennials who once fuelled the urban BTR boom are now seeking family-friendly environments that maintain the service and community ethos they have come to expect. The rise of hybrid working patterns and the post-pandemic appeal of space and greenery have only accelerated this trend.
The BTR suburban communities model offers much more than just a house to rent. It provides a community-centric approach, where an individual or family can occupy a home that suits their lifestyle today, with the flexibility to transition seamlessly as their needs evolve. Instead of dealing with the financial and logistical hurdles of buying and selling, tenants can move between different homes within the same development – perhaps upgrading to a larger property as their family grows, or downsizing when children leave home.
Service provision is central to this model. Suburban BTR communities typically offer extensive shared amenities, ranging from resident lounges and co-working spaces to gyms, pools, and communal gardens. Lifestyle services such as dry cleaning, parcel management, and even a ‘library of things’ – allowing residents to borrow rather than buy rarely used items – enhance the sense of convenience. Also increasingly common are concierge services to handle repairs maintenance, and deliveries; entertainment spaces such as private cinemas and BBQ areas; remote working hubs equipped with meeting rooms and high-speed internet; health and wellbeing facilities, including gyms, yoga studios, and outdoor recreational spaces; childcare services and communal activities designed to foster community bonds.
This extensive service model ensures that BTR suburban developments are not just places to live but dynamic environments that enhance quality of life.
Growing appeal of managed rental living
The evolution of BTR into suburban markets presents a compelling opportunity for investors and developers. Demand for high-quality rental housing remains robust, particularly as affordability pressures make homeownership unattainable for many. At the same time, shifting lifestyle priorities – facilitating flexibility, community, and convenience – mean that BTR suburban communities align perfectly with modern living preferences.
BTR’s move into the suburbs is not just an expansion – it is a transformation. The integration of resitality and hotelification ensures that suburban BTR is not merely replicating urban BTR in a different location but is evolving into a distinct model that prioritises service, flexibility, and community. The result is a highly attractive rental proposition, not just for tenants, but for investors and developers looking to capitalise on the growing appeal of managed rental living.
As we look to the future, it is clear that suburban BTR will continue to push boundaries, leveraging resitality principles to redefine what it means to rent. Whether it’s through concierge services, flexible housing arrangements, or an ever-expanding range of amenities, this new wave of BTR developments is set to shape the future of rental housing – offering an experience that is not just about where you live, but how you live.