24hr Remote Accessible Management (digital access)Management and resident communication through a digital platform.
Absorption RateThe pace at which units are let during lease-up (e.g., lets per week/month); used in underwriting, leasing strategy, and investor reporting.
Active ManagementA proactive operating model with on-site staff presence, community activation, and amenities programming, as opposed to passive asset management.
Active ManagementA proactive operating model with on-site staff presence, community activation, and amenities programming, as opposed to passive asset management.
Affordable Housing Tenure MixThe proportion and types of affordable tenures delivered within a scheme (e.g., Affordable Private Rent, Shared Ownership, Social/Affordable Rent & Discount Market Rent- DMR).
Affordable Private Rent (APR)Affordable rent tenure specific to Build to Rent in national planning policy: set at least 20% below private market rent for an equivalent property (inclusive of service charges).
Affordable UnitA unit of accommodation let at Affordable Private Rent.
AffordabilityA measure of whether rental costs are reasonable in relation to a resident鈥檚 household income. Affordability is often expressed as the proportion of gross income spent on rent, with benchmarks typically in the 30鈥�35% range. Affordability is a key metric for investors, operators, and policymakers. It influences scheme viability, rent setting, and planning negotiations (e.g. Discounted Market Rent or Affordable Private Rent within BTR schemes). Operators may assess affordability both at a portfolio level (rent-to-income ratios across schemes) and at a resident level (total housing cost including council tax, utilities, and service charges).
AmenitiesShared facilities for residents (e.g., gym, lounge, co-working, roof terrace, cinema) that enhance experience and asset value.
ARL Scheme Typetbc
ARL Unique Scheme Identifiertbc
Assured Shorthold Tenancy (AST)Default form of residential tenancy in England; grants possession rights and enables landlord repossession at end of fixed term or via statutory grounds.
Assured TenancyProvides greater the tenant with long-term security of tenure, with possession only possible on statutory grounds; currently less common in BTR. Once The Renters’ Rights Bill becomes law, ASTs will be automatically converted into Assured Tenancies.
AST (Assured Shorthold Tenancy)Current default form of residential tenancy in England; these are fixed-term residential occupational tenancies which permit landlords to reposses the relevant unit either: (a) on or after the end of the fixed term (after giving 2 months’ notice) or (b) on statutory grounds. The occupational tenant may remain in occopation beyond the fixed term so long as the landlord has not served a termination notice. These forms of tenancy will be automatically converted into Assured Tenancies once The Renters’ Rights Bill becomes law.
Average rent per sq ftAnnual rent divided by internal area; basis must be stated. NSA (Net Sellable Area) vs GIA/GFA; annual vs monthly rent; inclusion of add-ons. Use NSA as denominator; quote rent on annualised base rent excluding add-ons. State furnished/unfurnished basis.
Average void (days)Average number of days between end of one tenancy and start of the next.
BalconyA platform that projects outward from the wall of a building, typically above the ground floor, and is enclosed by a railing or balustrade.
WintergardenA fully enclosed, glazed balcony or loggia that forms part of the apartment. It is designed as a flexible indoor鈥搊utdoor space, providing residents with the benefits of a balcony while ensuring year-round usability, regardless of weather or noise.
Bike StorageSecure, in building, storage for residents bicycles. Scale of bike storage prescribed by Planning Policy.
BREEAMBuilding Research Establishment Environmental Assessment Method: sustainability assessment for buildings. Reputable industry-recognised sustainability assessment for buildings.
BTR ApartmentsApartments within blocks or estates, usually urban, with centralised amenities and on-site management; predominant UK BTR format.
BTR Blocks/EstatesBuildings or estates containing BTR Apartments
BTR HousesBTR houses delivered as individually, typically suburban, managed by a central operator; targets households seeking more larger homes with professional management benefits.
Build to Rent (BTR)Build to Rent (BTR) refers to purpose-built residential accommodation designed specifically for long-term rental, held in single ownership and professionally managed. BTR developments provide consistent service levels, longer-term tenancies, and often include shared amenities and community features. They typically are medium to large in scale and are backed by institutional investors focused on quality, service, and resident experience. (BTR is distinct from Buy to Let properties)
Build to Rent (BTR) 鈥� investment definitionInstitutionally owned private rental homes that are professionally managed and typically purpose鈥慴uilt.
Build to Rent (BTR) 鈥� policy criteria (London)To qualify under London Plan H11: blocks/phases of typically 鈮�50 units; single ownership and management; unified management and lettings; covenant to remain rented with DMR secured in perpetuity.
Building Safety ActUK legislation establishing a new regulatory framework for the design, construction, and occupation of higher-risk residential buildings (typically those over 18 metres or 7+ storeys). It introduces new duties on developers, contractors, and landlords, overseen by the Building Safety Regulator. Most medium-to-large BTR schemes fall under the Act due to their height and multi-occupancy. Operators and owners must register buildings, appoint accountable persons, maintain safety case reports, and engage residents in building safety management. The Act also affects development risk, procurement, and long-term operational compliance.
Bulk deal / Bulk purchaseAn investor purchases 40 homes in a scheme (not the entire block).
Capital Expenditure (CAPEX)Major lifecycle or enhancement costs (e.g., plant replacement, refurbishments) that extend asset life or performance and are capitalised.
Capitalisation rate (Cap Rate)Net operating income (NOI) divided by property value (PV) (i.e. Cap Rate = NOI/PV); a benchmark for value and return expectations
Cash鈥憃n鈥慶ash yieldReturn measure comparing cash income received to cash invested (equity).
ChurnPercentage of units in a scheme which (during the relevant period) were relet to a new occupier.
Churn (non-Renewal Rate)Percentage of ending those tenancies whose contractual term is due to end that (during the relevant period) did not renew during the period. It is the oposite of the Renewal Rate. This term may have less relevance once the Renters Rights Bill becomes law as the landlord will be less able to require the tenant to take a revised form of tenancy.
Co-LivingProfessionally managed residential units which are shared housing between different occupiers, with those occupiers having private rooms in such unit and sharing and extensive communal facilities, such as kitchens, lounges and amenities with the other occupiers. These are typically let on short to medium tenancies although once the Renters’ Rights Bill becomes law, these tenancies will be automatically converted into Assured Tenancies.
Communal GardensGardens within communal spaces within BTR Blocks/Estates which are provided for the benefit of the residents of the BTR Block/Estate.
Communal Kitchen (shared)Shared kitchens within communal spaces, ususally bookable, within BTR Blocks/Estates which are provided for the benefit of the residents of the BTR Block/Estate.
Communal areasThe shared spaces within a development that are accessible to all residents and designed to support convenience, wellbeing, and community living.
Compliance (Legal & Regulatory)Operator adherence to all relevant statutes and regulations including (but limited to) those relating to housing, safety, consumer, and data protection laws (e.g., Fire Safety Act 2021; Building Safety Act 2022; Consumer Rights Act 2015; UK GDPR/Data Protection Act 2018; Right to Rent).
Concessions / IncentivesTemporary rent reductions or inducements/gifts (e.g., rent-free periods, fee waivers) used to secure leases, particularly during lease-up or competitive markets.
ConciergeOperational employee whose job is to assist residents and visitors. Scope of role may vary.
Concierge (digital or offsite)
Covenant strengthAn assessment of the financial standing and reliability of a tenant/guarantor to meet lease obligations.
Co-working SpacesShared spaces for working within communal spaces within BTR Blocks/Estates which are provided for the benefit of the residents of the BTR Block/Estate space.
CRREM pathwayScience-based decarbonisation pathways for real estate aligned to Paris goals.
Customer CharterPublished standards of service commitments (transparency, communication, repairs, complaints handling); sector best practice for BTR and should meet or exceed the form of the ARL’s proscribed form of customer charter.
Date of Last OccupationDate on which the previous occupier of the relevant unit vacated the unit. (Date of last occupation may be later than actual lease end date.)
Debt Service Coverage Ratio (DSCR)Ratio of Net Operating Income to debt service payments; <1.0x indicates insufficient cash flow to meet debt service.
Decent Homes StandardGovernment benchmark for safe, warm, and well-maintained housing.
Defects Liability Period (DLP)Period following completion of works of construction during which the contractor is obliged to remedy defects.
Discount RateRate used in discounted cash flow models to value future cash flows, reflecting risk profile and cost of capital.
Discounted Market Rent (DMR)Intermediate affordable tenure typically used in BTR, typically set at 80% of market rate. This forms part of the Affordable Housing Tenure Mix. In London, DMR is expected at ‘genuinely affordable’ levels 鈥� preferably London Living Rent. DMR homes must be secured in perpetuity.
EICRElectrical Installation Condition Report; required at least every five years for rental homes in England.
EPC ratingEnergy Performance Certificate bands A鈥揋 indicating energy efficiency of a dwelling.
EPRA BPREuropean Public Real Estate Association best practice recommendations, being EPRA鈥檚 mission to improve transparency, comparability and relevance of financial reporting in the real estate industry.
EPRA NDVNet Disposal Value (as referred to in the EPRA BPR); it includes fair value of fixed interest rate debt and intangibles.
EPRA NIYNet Initial Yield (as referred to in the EPRA BPR) based on market rent, net of non-recoverable operating costs; excludes vacant space.
EPRA NRVNet Reinstatement Value (as referred to in the EPRA BPR); it assumes entities never sell assets and reflects rebuilding value incl. transfer taxes.
EPRA NTANet Tangible Assets (as referred to in the EPRA BPR); it excludes intangible assets and fair value of derivatives, includes deferred tax on a partial basis.
EPRA Topped-up NIYEPRA NIY adjusted for rent-free periods and other incentives.
ERV (Estimated Rental Value)The rent at which a property could be let on the valuation date on standard lease terms, per RICS Red Book.
ESG (Environmental, Social, Governance)Framework covering environmental performance, social outcomes (affordability, wellbeing), and governance (reporting, ethics) embedded in BTR.
Exit Yield (Cap Rate)Expected capitalisation rate applied at disposal; used to estimate exit value (Value = NOI / Exit Yield).
Forward fundingA funding structure where an investor purchases the land and then provides funding to a developer to procure the development (for a fixed price) of the relevant scheme. The developer takes the risk of any cost-overruns. This is commonly used by investors in BTR to de鈥憆isk delivery.
Forward PurchaseAgreement under which an investor agrees to acquire a completed BTR asset at practical completion or stabilisation, typically at a pre-agreed yield.
Furnished?The property comes with essential furniture, and appliances. This may vary depended on the scheme.
Gross Development Value (GDV)Estimated value of a completed scheme, typically derived by capitalising stabilised NOI at a market yield.
Gross Operating Income (GOI)Income from rent and other operations e.g. amentieis, events etc
Gross to Net LeakageDifference between gross potential rent and net operating income after voids, incentives, arrears, and operating costs; it is a key operating metric.
Gross-to-net %Rental income vs Actual operating expenditure (utilities on voids, operational costs, rent after discounts, incentives, or free rent periods) as a % of gross annual rent. Council tax is excluded.
Gross to Net Floor AreaGross floor area is the total enclosed area within a building’s exterior walls, including structural elements, internal walls, and common areas. Net floor area, also known as听Net Internal Area (NIA)听or usable floor area, is the smaller, functional space available to tenants or occupants, excluding these structural and common elements. The “gross to net” calculation essentially measures the proportion of a building’s total enclosed space that is actually usable. A higher ratio of net to gross area indicates greater efficiency in the building’s design, with less space lost to structural components and common facilities.
GymA dedicated on-site fitness space is a core amenity that enhances resident lifestyle, encourages community engagement, and adds value to the overall scheme. Designed to support residents鈥� health and wellbeing, facilities typically include a curated selection of cardio, strength and functional training equipment with layouts tailored to the demographic profile of the development.
Household (黑料专区 definition)A household is any individual or group of individuals who choose to live together, in whole or in part, sharing a dwelling, facilities, or resources for the purpose of residence, support, or community. Households may be permanent, temporary, or transitional in nature, and they encompass all forms of residential living arrangements. These include the following types of Households: Single-person Households 鈥� individuals living independently. Single-family Households 鈥� families in all their forms, including blended, extended, and non-traditional families. Shared Households 鈥� groups of unrelated individuals living together by choice or necessity. Co-Living/Communal Households 鈥� people living collectively with shared spaces, responsibilities, or resources. Short- and medium-stay Households 鈥� including renters in serviced accommodation, students, and those in transitional housing. Later-living Households 鈥� older individuals or groups in retirement, supported, or intergenerational settings.
Household (Commercial)Commercial / Market Context (Property & Contracts): In commercial real estate, finance, and tenancy agreements, household is often used to mean a family unit occupying a dwelling. This narrow definition underpins how rental contracts, insurance, and even marketing materials are framed.
Household (Housing Act 1985)The Housing Act 1985 and subsequent legislation largely define households around family units, typically recognising married couples, civil partners, cohabiting couples, and dependent children. These definitions often drive eligibility tests for social housing or housing benefit.
Household (Office of National Statistics)鈥淥ne person living alone, or a group of people (not necessarily related) living at the same address who share cooking facilities and share a living room, sitting room or dining area.鈥� (Source: ONS, Household composition statistics)
Household (Planning)Planning / Local Authority (Use Classes Order, HMO licensing): Planning law distinguishes between: – C3 Dwellinghouses: up to six people living together as a single household (often interpreted as a family). – C4 Houses in Multiple Occupation (HMOs)
Houses in Multiple Occupation (HMOs)Properties rented out to at least three people who form two or more households (e.g. not a single family) and share basic facilities like a kitchen, bathroom, or toilet. Where an HMO is occupied by five or more people across two or more households, it requires a mandatory HMO licence from the local council.
How to Rent guideGovernment checklist document that must be provided to tenants at the start of a new residential tenancy in England.
Inclusive RentRent structure bundling utilities, broadband, and/or services into a single monthly price to offer certainty and convenience to residents.
Internal Rate of Return (IRR)A financial metric that calculates the annualised return an investor expects to earn on a project, taking into account both income and capital value over time. Uses discounted cash-flow as a tool to capture the time-weighted return to investors over the hold period.
Laundry FacilitiesLaundry room separate to the demise of the apartment, provided for the use of residents only
Lease upInitial letting phase of a new BTR scheme.
Lease Expiry DateThe date on which the contractual term of the tenancy ends. This may become increasingly irrelevant once The Renters’ Rights Bill becomes law.
Lease Start DateThe date on which the contractual term of the tenancy starts.
Lease TypeThe type of tenancy under which the resident occupies the unit. This may become increasingly irrelevant once The Renters’ Rights Bill becomes law.
Lease-up speedTime taken from first unit release during the Mobilisation Period to reach Stabilised Occupancy.
Like-for-like rental growthGrowth in rental income for those properties which were held through the entire current and the prior period.
Loan鈥憈o鈥慥alue (LTV)Loan balance divided by the value of the property/investment; this is a gearing/leverage metric used by lenders and investors. The ratio of the loan amount to the appraised value of a property, expressed as a percentage. In BTR, it shows how much of a scheme鈥檚 value is funded by debt versus equity.
London Living Rent (LLR)Greater London Authority (GLA) intermediate rent product with benchmarks based on local household incomes (targeting circa one third of local incomes). Designed to support tenants saving for shared ownership.
LoungeA shared space for use by residents and their guests.
Material arrears %Arrears older than 1 month as a percentage of gross annualised rent roll at a snapshot date.
Mobilisation Period/MobilisationThe critical pre-launch phase where a new development is prepared for operation and occupancy. It involves finalising design for customer use, building and training a dedicated on-site team, setting up financial and operational systems, and executing a strategic marketing and lease-up plan to ensure a smooth transition from construction to successful operation and customer satisfaction.
Modern Methods of Construction (MMC)Construction approaches that modernise and industrialise delivery, including off鈥憇ite manufacture, modular or panelised systems.
MonthMonth end snapshot
Multifamily BTRSee BTR Apartments
Multifamily Housing (MFH)See BTR Apartments
Nationally Described Space Standards (NDSS)Minimum unit sizes for new homes.
Net Effective Rent (NER)The true average rent under a tenancy over its entire term, accounting for concessions like free rent and tenant allowances by subtracting them from the total rent and then dividing by the lease duration (i.e. NER = total rent receivable over the whole term – concessions/length of the term).
Net Operating Income (NOI)Net Operating Income = Gross Operating Income – Total Operating Expenses
Net rental income (NRI)The total rental income received, minus all the direct and indirect costs (such as incenties and operational costs) associated with letting it.
Net rental income margin (Gross-to-net)Rental income net of direct property costs less costs of providing estate management services.
Net rental yield/Net rental income marginNet Rental Income as a percentage of Gross Rental Income.
NPS (Net Promoter Score)Customer satisfaction metric measuring likelihood to recommend on a 0鈥�10 scale. (Not industry specific)
Occupancy (CBRE UK benchmark)The average occupancy in BTR schemes in the UK (or the relevant area) as calculated by CBRE (CBRE UK Market Outlook 2024 notes average occupancy in BTR schemes in the UK is c.97%). Used as a benchmark against which to compare performance.
Occupancy rate (economic)Rent billed on occupied units as a percentage of gross potential rent (GPR) at a point in time.
Occupancy rate (physical)Number of occupied units divided by total units at a point in time.
Onsite MaintainanceAvailable maintenance operatives based at the premises , this may not be 24/7 and will vary by scheme.
Onsite ManagementA type of active, on site, management for specified periods of time e.g. 24/7 or 12/7. Also see Active Management
Open Market Letting RentOpen market letting rent at end of month (per calendar month)
Opening DateThe date the operator opens the relevant BTR scheme for residential letting of the units.
Operating Costs (Opex)All operating expenses – maintenance, staffing, voids, insurance etc.
Operating Expenditure/ Operating Costs (OPEX)Operating costs required to run the asset (e.g., staffing, repairs & maintenance, utilities, insurance, marketing).
Operating Expense Ratio (OER)Opex 梅 gross rental income. Benchmarks operating effeciency.
Operational Management Agreement (OMA)Contract between asset owner and management operator defining services (lettings, maintenance, amenity activation), fees (fixed/base+incentive), reporting and KPIs. (Sometimes known as Property Management Agreement).
Other IncentivesMonetary equivalent of any non-monetory incentives
Parcel LockersIndividual lockers for the use of residents for convenient parcel delivery
Parcel StorageShared space for the storage of parcels for the convenience of residents
ParkingSpace to accomodate resident’s vehicles
PartnershipA planned and negotiated development deal, where the developer delivers multiple units to an investor/owner, for onward provision to occupiers under a range of tenures.
Passive ManagementManagement that delegating most, if not all, aspects of asset and property management to third-party operators or managing agents, with the asset owner or investor maintaining minimal direct involvement in operational decisions. Also see Third Party Management .
Periodic tenancyA tenancy that continues on a rolling basis (e.g., monthly) after the fixed term, until ended by notice. AST’s automatically become Periodic Tenancies after the end of the stated contractual term.
Pet FriendlyApartments available that allow pets with certain restrictions
PlacemakingDesign and management approach to create active, inclusive, and engaging places that foster resident community, identity, and wellbeing.
Practical Completion (PC)The stage in construction when the works under the building contract have been completed. It is the point at which the building contractor hands the property to the owner and is the date (typically) on which the Defets Liability Period (DLP) starts. It is possible that lawful occupation of the property by residential tenants may not not be permitted at PC; there may be statutory and other requirements which need to be satisfied before lawful occupation is permitted.
Pre鈥慍onstruction Services Agreement (PCSA)A PCSA is a short-term contract between a client and a contractor that covers services provided before the main construction contract is signed. It allows early contractor involvement to support design development, cost planning, buildability reviews, risk management, and programme advice. The contractor is paid for professional input only, not for carrying out works, with the intention (though not obligation) that they will later be appointed to deliver the full construction contract.
Private DiningAmenity space available for residents to use outside the demise of their apartment.
Renewal RatePercentage of residents who renew their tenancy at expiry; during the relevant period. It is the opposite of the Churn (non-Renewal Rate). It is currently a driver of stabilised occupancy, voids, and turnover costs. This term may have less relevance once the Renters Rights Bill becomes law as the landlord will be less able to require the tenant to take a revised form of tenancy.
Renewal?Implied from previous lease expiry and new lease start if not completed
Renewals ratePercentage of eligible tenancies that renewed during the period.
Rent collection rateActual cash collected by last day in month divided by rent due for the current month.
Rent FreeA period of time that a resident is exempt from paying rent often use as an incentive. Monetary equivalent of any rent free incentives
Rent IndexationMechanism for periodic rent reviews (e.g., linked to CPI/RPI or fixed %) in longer-term agreements and some BTR operating models.
Rent-to-Income RatioMeasure of affordability for residents.
Rent Passing/ Passing RentRent payable per calendar month.
Renters鈥� Rights Bill (RRB)Proposed legislation (affecting England) to (amongst other things) abolish Section 21 of the Housing Act 1988 and reform tenancies/grounds for possession; relevant to BTR leasing and management.
Resident Engagement / Resident VoiceStructured mechanisms for resident input (surveys, forums, digital platforms, resident groups), used for service improvement and ESG reporting.
Resident EventsFree activities and social events exclusive for residents to promote a sense of community.
Right to Rent checkA legal requirement in England for landlords/agents to verify a tenant鈥檚 right to rent in the UK.
Roof TerraceA communal or private outdoor space created on the roof of a building, often landscaped or furnished, providing residents with additional amenity space, views, and opportunities for relaxation or socialising.
Section 106 (S106) AgreementsPlanning agreements, affecting the relevant property, entered into as a condition to the grant of planning permission for the relevant development. Commonly (in relation to BTR developments) they contain obligations requiring certain levels of affordable housing and/or community contributions .
Secure StorageAdditional space available to residents for storage which usually comes with a separate charge.
Selective LicensingAn election by any local authority to require that any owner of private rented accommodation in a particular area of the authority’s district or borough is licensed by the local housing authority.
Service ChargeA cost paid by residents to cover shared services and amenities, typically separate from rent e.g. cleaning, maintenance, utilities in common parts, concierge allocated to residents; must be transparent and reasonable.
Single Family Housing (SFH)See BTR Houses.
Single-Family Rental (SFR)See BTR Houses.
StabilisationPoint at which the asset achieves target occupancy and steady-state operations; often a milestone for refinancing or forward-funding completion.
Stabilised Asset (CBRE UK)Operational BTR/multifamily schemes delivering steady performance and income. BTR properties which have reached this stage are attractinve to institutional investors.
Stabilised OccupancyTarget steady-state occupancy threshold used to define completion of lease-up for an asset.
Storage (additional to home)Rentable storage within the building or development.
Wellness StudioA multipurpose & versatile lifestyle space designed to support fitness, mindfulness, and community connection.
Tenancy Deposit Protection (TDP)Legal requirement to protect deposits in an approved scheme (DPS, TDS, MyDeposits) and provide prescribed information to the tenant.
Third Party ManagementA professional service arrangement in which a dedicated BTR operator or property management company is contracted by the asset owner to run the operational aspects of a Build-to-Rent scheme, including leasing, maintenance, resident services, compliance, and community engagement. Also see Passive Management.
Total arrears %Total arrears as a percentage of gross annualised rent roll at a snapshot date.
TurnoverRate of resident move-outs vs total units.
Turnover CostsCosts incurred when a unit changes tenancy (e.g., cleaning, touch-ups, re-letting fees, marketing, lock changes), often tracked per unit.
Void lossRent lost due to unoccupied properties over the period.
Void PeriodTime between tenancies when a unit is vacant and not generating rent. Minimisation of the Void Period is managed through pricing, marketing, and renewal strategies.
WALT (Weighted Average Lease Term)Average unexpired lease term weighted by rental income; commonly used by investors though typically shorter in residential than commercial. This may become increasingly irrelevant once The Renters’ Rights Bill becomes law.
WAULT to breakWeighted average unexpired lease term to next tenant break, weighted by passing rent. This may become increasingly irrelevant once The Renters’ Rights Bill becomes law.
WAULT to expiryWeighted average unexpired lease term to lease expiry, weighted by passing rent. This may become increasingly irrelevant once The Renters’ Rights Bill becomes law.
Wifi IncludedThe cost of broadband is inluded in the rent.
YieldNOI divided by either (1) total development cost; or (2) price paid for the property. The Yield indicates return generated by a completed asset relative to cost paid (whether that is the cost of development of the price paid for the building).
Warranty CoverAn insurance-backed guarantee provided by a recognised warranty provider that protects a new developments against structural defects and major building faults for a set period (typically 10鈥�12 years), giving assurance to investors, operators, and residents.
Yield on CostThe expected stabilised net operating income (NOI) of a development, divided by total development cost. Used by investors to benchmark development returns.
