The Value of Getting Your Pricing Right – Maximising Returns for BTR Landlords and Operators

TL;DR (Summary)
Pricing your Build-to-Rent (BTR) units correctly is critical to maximising the asset value. Price too low, and you leave revenue on the table. Price too high, and your most expensive units sit vacant, forcing price cuts that weaken your bottom line.

Home Made uses a data-driven approach to fine-tune pricing, ensuring you secure the best rents at the right time, increasing ERVs by up to 25%. Get in touch today to discuss how we can maximise your NOI and enhance your asset performance.

Introduction

One of the most fundamental truths in real estate is that the price of an asset is what someone is willing to pay for it. When it comes to Build-to-Rent (BTR), getting your pricing right is one of the most powerful levers to drive revenue growth and enhance asset valuation.

At Home Made, we are specialists in BTR leasing and asset management. Our data-driven approach ensures landlords optimise pricing at every stage of the leasing cycle. This is not just about achieving occupancy—it’s about securing premium rents at the right time, reducing void periods, and driving long-term asset value.

The Common Pricing Pitfalls That Cost You Money

Many BTR landlords struggle with pricing strategies that fail to consider key market dynamics. This leads to missed revenue opportunities and unnecessary risk exposure. Here’s where things often go wrong:

1. Balancing Pricing Targets

• Undervaluation: If your pricing is too low, high-demand units are snapped up early in the leasing cycle. This means potential revenue is lost, and your premium units become misaligned with market conditions.
• Overpricing: Setting rents too high leaves your most expensive units stranded, leading to forced price reductions. This not only weakens top-line revenue but can also damage investor confidence in your pricing strategy.

2. Using the Wrong Metrics

• Some landlords rely on Sales-oriented KPIs, e.g. Rent per sqft.  The reality is that renters’ willingness to pay is not directly correlated to these metrics. A tenant reviewing a 30sqm Studio will simply not pay an extra 10% for a 33sqm studio in the same building.

3. Relying on Past Rents Instead of Market Reality

• Many landlords use historical achieved rents as the sole benchmark for future pricing.
• This ignores real-time demand fluctuations, shifting tenant preferences, and evolving neighbourhood trends.
• The result? An outdated and rigid pricing model that doesn’t respond to changing market conditions, leading to missed revenue opportunities.

4. Unit Types Appreciate Differently – and Many Landlords Ignore It

• A one-bedroom unit does not appreciate at the same rate as a two-bedroom unit.
• Pricing needs to reflect unit-specific demand trends, rather than applying blanket growth assumptions across the board.

5. The Risk of a Top-Heavy Leasing Cycle

• Large pricing gaps between entry-level and premium units lead to early lease-ups of lower-priced stock.
• This weakens demand for higher-value units later in the leasing cycle, often forcing price reductions.
• Many landlords only review rents annually, meaning they miss opportunities to adjust pricing dynamically in response to market conditions.

6. Seasonal Demand Varies by Unit Type – and Timing is Everything

• Different unit types peak at different times, even in the same location.
• Example: In Canary Wharf, one-bedrooms peak in May, while two-bedrooms perform best in the summer months.
• A one-size-fits-all pricing model fails to capitalise on demand peaks, resulting in longer void periods and lower returns.

How Home Made Optimises Pricing to Unlock Higher ERVs

Home Made applies a data-driven, dynamic pricing strategy that enables BTR operators to achieve higher rental yields without unnecessary discounts. Our methodology includes:

• Real-Time Market Analysis: We track seasonal fluctuations, demand patterns, and competitor benchmarks to ensure pricing is always optimised.
• Peak Leasing Period Identification: By analysing hyper-local trends, we determine the best time to market specific unit types.
• Price Elasticity Insights: We understand how tenants respond to price changes, allowing us to set optimal rents that maximise ERV while maintaining demand.
• Neighbourhood-Specific Data: We tailor pricing recommendations to micro-market trends, ensuring your rents are competitive, compelling, and aligned with actual tenant behaviour.

The Outcome? Up to 25% Higher ERVs

Our strategic pricing model enables BTR landlords to increase their Effective Rental Value (ERV) by up to 25% while maintaining strong occupancy rates.

This isn’t just about filling units—it’s about securing the highest achievable rent at the right time, ensuring maximum revenue growth and sustained NOI improvement.

Take Control of Your Pricing Strategy Today

If you’re a BTR landlord looking to optimise rental yields, Home Made can help.

Our precision-driven approach ensures you make informed pricing decisions, reducing void periods and maximising the performance of your asset.

Get in touch today to discuss how we can help you unlock higher returns with a smarter, data-led pricing strategy.  Contact us at btr@home-made.com