The benefits of outsourcing BTR leasing

As the build-to-rent (BTR) sector grows in Australia, developers are increasingly recognising the value of engaging specialist BTR leasing partners to drive success.

BTR is unique in its emphasis on long-term renter satisfaction, and achieving this requires a shift in approach from traditional development and project leasing or sales models.

A specialist BTR leasing partner’s expertise should go beyond leasing a building, and be able to set a strategy that increases margin, manages financial and funding obligations, maximises occupancy rates and drives long-term renter retention.

Here’s five reasons to consider a specialist BTR leasing partner:

1. From the early stages of the project, a specialist leasing partner can help developers build a financial model that meets funding requirements during lease-up and generates revenue long-term. Through the review of floor plans, more margin can be extracted in many cases, and more accurate revenue predicted based on apartment layouts, rather than traditional build-to-sell square metre rates, which are outdated in the innovative BTR space.
2. Intricate taxation and financial models unique to BTR require considered strategies to navigate. These can quickly become a hazard for unsuspecting owners who are non-compliant and risk legal costs and fines. The right advice here can ensure there are no nasty surprises.
3. A specialist project leasing partner can help clients build and understand the different financial models, including the long-term provision of staff overheads to manage renewals and provide the service BTR tenants expect.
4. Specialists in this space are adept at building a long-term strategy to deliver stable occupancy and rental income. They have an ability to navigate the complexity of BTR leasing and they understand how it differs from a traditional rental experience.
5. Specialist leasing partners understand the nuances of renter needs and can create the seamless and positive living experience renters expect. Many developers are unfamiliar with the complexities of providing ongoing customer service at this scale. Outsourcing to a team with proven expertise in long-term tenant engagement ensures that service standards are maintained consistently.

With an ability to reduce vacancy rates and shorten leasing timeframes, specialist project leasing partners are a savvy way for developers to derisk their projects and drive success.