As Australia’s Build to Rent market continues to gain momentum, the competition for tenants is fiercer than ever, requiring operators to work harder to stand out.
By Nicole Hiddlestone, Build to Rent Leasing Strategist, Infolio Property Advisors
With an increasing number of developments entering the market, there are a range of leasing strategies in play – incentives, deep discounting, multiple listings, one-to-one personalised tours. But what actually matters here?
Many developers are focusing on how the leasing process can be better than in the private market – removing inconvenient 15-minute OFIs and long lines of prospects. This meets both the expectation of renters in Build to Rent, and the promise the sector has been built upon.
At Infolio, we believe this doesn’t go far enough. We’ve built some proven tactics to drive not only strong occupancy rates, but also good rental returns – unusual in the Melbourne market where incentives are everywhere.
Play hard to get
Scarcity marketing has always worked well in the off-the-plan space and in consumer marketing. Creating a sense of urgency is critical by limiting releases and not flooding the market, thereby reducing the risk of a price war.
Where a competitor has had 21 adverts up to move completed rental stock, we have three adverts up to create a sense of urgency.
A successful leasing strategy should make people feel there isn’t much left by presenting what’s available in the current release. It’s also effective to make a prospect feel they’re getting the best one in that release.
Be completely available
While I wouldn’t recommend this strategy if you’re in the dating game, being completely available works in leasing. Onsite full-time agents who deeply understand and know your product will always convert leads more successfully than untrained part-timers stretched thin across projects.
Leasing agents must be on site offering personal tours. These can’t be real estate’s traditional 15-minute tours – in Build to Rent, you’re inducting a prospect into the lifestyle and that takes time and an understanding of a project.
Make it seamless
Build to Rent is built upon the promise of making renting easy. So, make it easy. Don’t make a renter drive to South Yarra to collect their keys if they’re moving into an apartment in Fitzroy. Meet them in Fitzroy.
Stand out by considering their needs – induction packs with their car space mapped including directions on how to find it, where their bin chute is found and tips for the best coffee.
It’s these one-percenters that add up and create a lasting impression.
In Melbourne’s cluttered Build to Rent leasing space, its crucial operators think differently to stand apart. A race to the bottom with discounting and incentives serves no-one, including the renter who’ll likely suffer a lease hike when they renew.
