Case Study:  Corporate Leasing & the Power of Precision

There is value in observing the masses and doing the opposite.

The Situation:

Landlord’s contact us all the time to get our perspective regarding what rental strategy’s they should implement. However, it is always a refreshing surprise (and compliment) when previous customers reach out. In this particular case, an owner had enjoyed notable success over the years self-managing their property.  It was a furnished property, so she had jumped on the Airbnb bandwagon as well as leasing her property through a large franchise real estate agency. Being homebound during COVID19, her existing tenants became laser-focused on purchasing a home which eventually resulted in them terminating their lease 3 months early. The relationship between the owner/landlord and the tenant became uncomfortable and borderline hostile.  Simply put, breaking the lease had become expensive for all the parties involved.  So here she is, in the middle of the pandemic with an empty fully furnished luxury property and international travel/migration severely constricted.  To say that she was concerned and did not have faith in real estate professionals would be an understatement.

The Solution:

We were appointed by the client because of our reputation in luxury furnished property, corporate rental and executive leasing in the area. We had 2 weeks for the tenant to exit and they were not comfortable or remotely welcome to anyone doing open for inspections (OFI’s).  

Over the years, Property Providers has built a strong reputation with corporate relocations agents. As we are accustomed to doing deals over borders, we were way ahead of the curve in terms of video and virtual inspections. Many agents feel that any or all marketing material must be slick and polished however we feel that sometimes “telling vs selling” can be a good thing.  At the end of the day, time is currency and speed is everything.

The Result:

After negotiating the early break lease of two weeks rent, we had three separate offers for the property within days without anyone walking through the property. One from a local family who were looking to buy in the area and two corporate families. This is in the height of pandemic when people are losing their jobs and confidence is low? In the end, the Landlord settled on an executive family who had relocated to Sydney for the next 2 years of work and signed a lease for 24 months at a rental increase of 31% (from $2500 p/w to $3600) when the rental rates in the COVID market were declining.  This plus 2 weeks additional rent from the vacating tenants with only 3 days of vacancy for the landlord. After this whole process we handed back the property for her to manage,  the whole exercise took only 3 or 4 touchpoints between the client and agency and no public marketing (i.e. no realestate.com.au or domain) just through positioning ourselves in the market and building the relationship we were able to achieve all this just through our contacts and database.

Needless to say, this was a stand-out result considering the challenging market conditions.

CATEGORIES

• Blog (63)
• Case Studies (7)
• Industry (25)
• Investing (33)
• Long Term (27)
• Regulation (8)
• Short Term (42)
• Style (9)
• Sydney (18)

ARCHIVES

• June 2022 (5)
• April 2022 (3)
• March 2022 (1)
• November 2021 (1)
• October 2021 (3)
• September 2021 (1)
• July 2021 (3)
• June 2021 (4)
• May 2021 (1)
• April 2021 (1)
• March 2021 (1)
• November 2020 (3)
• September 2020 (1)
• August 2020 (2)
• July 2020 (3)
• April 2020 (2)
• March 2020 (2)
• October 2019 (3)
• September 2019 (1)
• July 2019 (4)
• April 2019 (2)
• March 2019 (2)
• December 2018 (1)
• November 2018 (1)
• October 2018 (1)
• August 2018 (2)
• July 2018 (3)
• June 2018 (3)
• March 2018 (1)
• February 2018 (1)
• August 2017 (1)