Everything You Need To Know About Lease-Up Apartments And The Marketing Challenges Facing Them

Lease up marketing challenges

There are no signs of the real estate industry slowing down anytime soon as far as new apartment construction is concerned. Real estate investors, property managers as well as marketing personnel are looking for unique ways to effectively establish a reliable presence, and increase occupancy rates, in incredibly saturated markets.

Lease-up apartments are newly available properties that are not yet completed, but are scheduled to be completed by a certain date. This usually means that interested parties can sign leases while the building is under construction. Since they are still being built, lease-up apartments need stellar marketing strategies in order to gain an audience, and ultimately convert to occupancy. However, apartment leasing strategies are easier said than done. Here are some marketing challenges they face.

Lease-Up Marketing Challenges

Lack Of Visual Aids

A visual aid is something you can see, be it a photograph, a movie, a model, a map, or a slide that helps you understand something. Established residential complexes have units that are physically ready to move in; they also have clubhouses, landscaped gardens, amenities etc. already present on the site. So, when such complexes create a website, they can take excellent photographs and videos of their lot and each unit and upload them on their website. Prospective residents can then see exactly what the property looks like. This is where lease up apartments face the biggest challenge. Since the property is still under construction, photographs and unit walkthroughs cannot be done. How would a prospective resident know what the home would finally look like? To tackle this challenge, some apartment leasing solutions are:

  • 3D animated photos and videos are a good place to start.
  • Creating a sample/show apartment within the premises of the construction site can give walk-in customers a feel of the final unit.
  • It’s also important to upload current photos and videos. This way, residents know the construction site’s completion status.
  • Including floor plans is a good idea.

No Authority With Search Engines

Search engines prefer websites that are recognized as trustworthy. When lease-ups launch their website, search engines know nothing about the people behind the website. Likewise, unless a big brand is associated with the property, prospective residents know nothing about the people behind the lease-ups. So, there is simply too much risk here for both search engines and residents. Search engines manage risk by reducing traffic to the website. Whereas, prospective residents will probably opt for a lease-up which is already well-known or has a good digital presence. This dilemma can be resolved by implementing an apartment lease up strategy that focuses on creating a trustworthy digital presence. The more a search engine pushes your website, the more are the chances of people trusting it.

Lack Of Property Management

Already built and established communities have property managers who run the property really well. From collecting rent to addressing resident grievances and everything in between, property managers do it all.  However, for under construction lease-up apartments, there’s a lot more that needs to be done – from creating apartment leasing marketing strategies, managing walk-ins, and ensuring the project timelines are on track to figuring out what rent rates should be applied and making sure that regular maintenance is carried out. This is one challenge that can get overwhelming.

Manage Your Lease-Ups With BFPM

Managing lease up apartments is no easy feat. Apart from overcoming the above-mentioned marketing challenges, you also need to implement lease-up marketing strategies that can increase enquiries and footfall. With over 2 decades of property management experience, Beach Front Property Management can definitely help you manage your lease-up apartments efficiently. To know how, get on a quick 15-minute consultation call with us. We’d be happy to guide you.

Trevor Henson

Trevor Henson is an experienced entrepreneur (10+ highly-successful start-ups) and property investor with a demonstrated history of building and leading teams in investment property management environments, maximizing returns for property owners, and optimizing properties through construction management and re-positioning. He…
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Frequently Asked Questions(FAQs)

Following are the components of a lease agreement: 1. Names of the renters 2.Description of the property 3. Rent amount and due date 4. Mode of rent payment 5. Grace period, amount of late charges etc. 6. Amount of security deposit 7. Charges, is any, for utilities should also be mentioned 8. List of amenities and facilities on the premises that the residents can use 9. List of rules and regulations like noise rules and per policies. 10. Penalty charges for violation of above rules

In most cases, you will have to pay an ‘early lease termination’ fee. This is generally equivalent to 2 months’ rental amount. Note that in some states, you may be obligated to help your landlord find a new tenant if you decide to move out before the lease is up.

A lease-up strategy is a marketing strategy that can help you attract prospective residents. This strategy can be something as simple as using print media for publicity to as complex as creating a website and implementing the right SEO techniques.

Lease-up experience refers to the process of marketing, promoting, and leasing out a newly developed or renovated property. It involves attracting and securing tenants to occupy the available units within a specified timeframe. During the lease-up period, property management teams focus on advertising the property, conducting property tours, screening potential tenants, negotiating lease terms, and ultimately filling the vacancies. The goal is to reach full occupancy within the desired timeline and ensure a successful start for the property.