As many of Melbourne’s Build to Rent projects approach 12-months of operation, developers are being urged to prepare for their riskiest period yet.
By Nicole Hiddlestone, Build to Rent Leasing Strategist, Infolio Property Advisors
The 12-month mark is a critical tipping point for Build to Rent projects, where the renewal of the first leases will either make or break the project long-term. Where tenant experience has deteriorated over the first 12 months, projects risk reduced satisfaction, negative word of mouth and increased vacancy risk.
Many projects will be tested over the coming months as they enter this critical phase and that savvy developers should be planning for them proactively. Many developments focus heavily on the lease-up phase and grand opening, but momentum can drop off fast.
If lifestyle and service offerings aren’t continually nurtured, tenants feel it – and they start looking elsewhere. And in a market as competitive as Melbourne’s, it’s not hard to move.
The impact of a poor tenant experience is far-reaching. Negative reviews, social media commentary, and informal word of mouth can quickly erode a property’s reputation. Once tenant sentiment shifts, new leasing becomes harder and existing tenants begin to exit.
Developers need to focus on ongoing lifestyle investment, service quality and proactive retention strategies. This includes regular experience audits, curated activations, and personalised tenant engagement programs that extend well beyond move-in day.
Proactively building a community is important as well – when tenants have friends in their building, they’re more likely to stay for longer. Retention doesn’t just happen. It’s a strategy. The best results come from staying close to tenants, solving problems early, and ensuring the experience evolves with them.
As competition intensifies and occupancy targets tighten, sustained tenant satisfaction is fast becoming one of the most valuable currencies in property.
