The Build-to-Rent sector has experienced significant growth in the past few years. As a result, landlords are facing more competition to attract and retain tenants. No matter what, you need to maintain a higher level of occupancy in your properties. It will eventually ensure the financial viability of the projects. However, attracting tenants requires more than just creating a nice living space. As a landlord, you need to follow a strategic approach to stand out. Read this article as it provides a comprehensive guide on how build-to-rent landlords can boost occupancy rates.
Flexible Leasing – The Key to Higher Occupancy Rates
The traditional 12-month lease has long been the norm across rental housing. As the build-to-rent sector matures, landlords realize the benefits of providing greater flexibility. Offering alternatives, like month-to-month or short-term leases, can significantly expand your tenant pool. For some renters, the flexibility offsets higher rents or concessions. When executed strategically, flexible leasing enables properties to achieve and sustain higher occupancy.
Understanding Demand
It helps to recognize the types of renters attracted to flexible terms. Young professionals anticipating job relocations, travelers on long-term projects, separating couples, and renters between home purchases often value short-term solutions. On the other end, remote workers and graduate students may prize the freedom of 30-day notices over yearly contracts. Catering to these diverse needs through flexible offerings allows you to convert more leads into move-ins.
In addition, flexibility provides existing tenants with an incentive to renew and refer friends, rather than moving out upon lease expiration. Especially in transient areas, being able to retain great residents boosts occupancy rates over time. Keep in mind that flexibility comes at the cost of additional turnover expenses and volatility. So, target options toward tenant segments that offset the trade-offs.
Executing Month-to-Month Leases
A 30-day notice period is highly appealing for renters desiring maximum flexibility. To make month-to-month viable, landlords can charge a 10-15% premium over longer leases. This premium accounts for extra administration and turnover costs. Given the lack of a fixed term, qualify tenants carefully, potentially requesting proof of income or an additional security deposit. Integrate an addendum allowing landlords to cancel with appropriate notice, enabling policy changes if needed.
While open-ended, establish policies regarding lease renewals and rent increases. For instance, 90 days notice is required for any rent hike of over 5% so tenants can prepare. Overall, month-to-month brings landlords a wider audience. When implemented strategically, the incremental revenue generated can outweigh the downsides of frequent move-outs.
Offering Short-Term Options
Alongside open-ended agreements, three—to six-month leases appeal to those needing temporary housing. They are ideal for travel nurses, internships, corporate rentals, or families in transition. Given the fixed end date, landlords can charge a slightly lower premium, around 5-10% over the market.
To ensure vacant units get filled quickly, dedicate certain percentages to short-term housing. Track demand by season or events to allot units accordingly. Also, develop marketing campaigns specifically targeting short-term renters through partnerships, digital ads, or listings on booking platforms.
With the right mix of policies, flexible leasing allows build-to-rent owners to maximize occupancy and rental income. Catering to shifting demand through these well-executed strategies is key to sustaining full communities.
Benefits of Focusing on Tenant-Centric Amenities
There are numerous benefits that you can get out of tenant-centric amenities. Let’s go through some of the most prominent benefits out of them.
Amenities That Attract and Retain Renters
A large number of multi-family houses tend to pop up in metros. As a result, your build-to-rent developments should offer a unique value. Bay Property Management Group Northern Virginia understands the need for a new generation of tenants to rent a furnished apartment. Instead of offering lavish living spaces, consider offering features that improve the daily life of tenants. This is where you can look for tenant-centric amenities based on the tenant’s priorities. Then you will be able to meet the needs of customers in a better way.
Understanding Your Customers
You must also spend some time to understand your target customer base. You may do it via surveys and focus groups. This is where you should gather insights into lifestyle habits and pain points. Then, you can come up with appropriate amenities to cater to those pain points. Always go ahead with must-haves such as in-unit washers and dryers. On top of that, you need to take a look at the adoption rates for existing facilities. Then, you can get a better idea of what they actually use.
When you have a good understanding of your customers, you can offer better customer service as well. You can emphasize how good customer service and other property management services enhance the overall tenant experience on rentals.
Positioning Around Everyday Essentials
Armed with an understanding of resident priorities, develop unique lifestyle-enhancing amenities within your property. Having necessary conveniences like garages, bike storage, pet spas, and parcel lockers can be bigger draws than a sky lounge. Highlight these useful features prominently in tours and marketing.
For example, emphasize functional spaces like gear rooms for stashing sports equipment or camping supplies. Outdoor-centric renters prefer secured storage to liberate limited square footage in their units. The desire for flexible coworking spaces on-site is growing to adapt continuously to remote work. Rather than flashy extras, showcase amenities that enable enjoyed hobbies or simplify errands. This focus on must-have essentials aligned with regional lifestyles wins over tenants.
Driving Value Through Service
Alongside amenity offerings, elevate service programs to cater to recurring needs. Concierge assistance with tasks like pet services, dry cleaning, car maintenance, or grocery delivery provides added convenience. Consider partnering with trusted local providers for exclusive discounts or seamless onsite access.
Structured initiatives like fitness challenges, watch parties for popular shows, or community volunteer events help strengthen engagement. Rewarding your tenants can deliver more impressive returns than you think. Leaning into service and programming around day-to-day essentials conveys a genuine commitment to enhancing residents’ lifestyles.
Final Words
While lavish amenities attract prospects, convenient must-haves drive leasing and loyalty. By focusing on services and features tailored specifically to your tenant profile, your build-to-rent asset can better meet expectations. Focusing on amenities that are aligned with resident habits, interests, and priorities allows you to stand out from the competition now and in the future.