While leasing luxury real estate can certainly be lucrative, navigating the market can also be tricky. With many luxury homes and apartments sitting vacant across the country, you must stay alert to potential changes in luxury rentals. By knowing what tenants are looking for and correctly emphasizing value, you can keep occupancy high and turn luxury leasing into a sustainable business.
The following are some key tips for competing in today’s luxury apartment market. Whether you’re operating in a city or coastal community, you can stay ahead by keeping up with the latest best practices.
Start with the basics
Luxury is only appealing when the basic amenities are flawless. To start, you want to ensure that every unit in your building is in top condition and spotlessly clean. This may seem obvious, but landlords often focus so much on the perks that they forget to go over the basics. For example, new custom swimming pool construction will not hold much value if your tenant’s oven isn’t working well. Luxury is all in the details, so be sure to carefully inspect each apartment between tenants and be attentive to renter needs. Once the foundation is set, you can start adding smart home features and whirlpool tubs.
Offer something unique
As luxury real estate companies struggle to attract new tenants, remember that you need to stand out from your competition. And this could mean thinking completely outside the box in your amenities. Such services might include a complementary massage therapy service, pet-boarding facilities, indoor gardens, or even an in-building musician. You know your local market, so try to think of unique perks that might draw in more renters.
However, you also must keep your eye on luxury real estate trends. Some amenities are simply must-haves for your ideal renter, and these features can change with the season. In 2019, luxury rentals jumped on board with wellness trends, featuring spalike pools, yoga studios, and saunas. A balance of fun, trendy, and classic amenities might offer something for every renter.
Find the right agent
Whether you’re newly entering the luxury real estate market or have been a building owner for decades, working with experienced agents can make or break your occupancy. Find an agent who knows your local market and has the skills to sell your units. An agent needs to know how to demonstrate value and communicate to your specific target market. Once they bring in the right interest, you can automate your screening and application system through landlord software. With a real estate agent you trust and a streamlined tenant onboarding process, you can keep interest flowing.
Know when to make changes
Keeping up with the luxury rental market can be challenging. Demand, trends, and best practices can change quickly. While luxury real estate is certainly a traditional industry, you shouldn’t be afraid to make changes. If you aren’t seeing as many rental applications as you once did, or if you’re noticing that your tenants are moving out after one year, note how you can improve the renting experience. Ask for feedback, see what industry experts recommend, and hire a consultant. You can stay on top of changes through this diligence, avoiding a dip in your business when the market shifts.
Competing in any luxury market can push the limits of your business. You need to know your ideal client and market accordingly. And this is certainly the case with luxury rentals. By carefully tracking your progress and making adjustments, you can stay on top of the luxury market and stand out among your competitors.