How the BTR oversupply is impacting leasing strategies

As the Build-to-Rent (BTR) sector continues to expand, the Victorian market is beginning to feel the effects of an oversupply in rental properties.

While the growth of this asset class has been heralded as a long-term solution to housing shortages, the surge in new developments is now presenting challenges for landlords and developers, particularly in the realm of leasing strategies.

With an increasing number of rental units available, competition for tenants is intensifying, forcing BTR operators to rethink how they attract and retain residents.

From pricing tactics to enhanced resident experiences and digital marketing initiatives, the way properties are marketed and leased is evolving rapidly in response to this shifting landscape.

At Infolio we employ a considered marketing strategy that avoids a race to the bottom and the slashing of rents. These include:

1. Scarcity marketing: We release only a segment of stock to create urgency and control uptake for a variety of critical strategic factors long-term. If we present six apartments, we want renters to feel they’re the best six. This strategy further limits a flood of stock on market, resulting in price wars
2. Lease it like you sell it: Our staff are in our clients’ display suites full-time, taking prospects not just through available apartments, but sharing the lifestyle on offer. Because for tenants, the lifestyle is of vital importance. Appointments aren’t 15 minutes like in traditional private renting, we take the time to stand out
3. Deliver convenience: There are a range of one percenters that can make a development stand out and illustrate to prospects why this apartment beats others. We’ve seen competitors make renters drive 30-45 minutes from their new home to collect their keys – we recommend inducting residents, and we actually provide maps enabling them to easily identify their car park, where their bins are and much more.

These strategies may seem obvious or simple, but in the race to lease up buildings, this service mindset is increasingly being forgotten by some. Unskilled, unqualified and generally unavailable staff impact the success of a project. A professional BTR specialist such as Infolio not only sets a smart strategy from the outset, but is able to deliver it with a trained and experienced team.

In today’s dynamic rental environment, it is critical that innovative solutions help BTR projects remain profitable.