With over 70% of the island’s housing stock consisting of for-lease properties, Manhattan is truly a “renter-centric” city; but we’re not alone.
The good news for landlords (and brokers) is there is a renter out there for every type of apartment you can think of from the smallest studio to a 20-room townhouse.
Here are a few tips for listing and marketing high-end listings:
Who rents luxury?
While there is obviously a larger number of lower-end listings in city, there is also a bustling market for those seeking the ultimate in luxury. The high-end NYC market is not much different from the rest. Apartments are rented in the blink of an eye and there is, very often, competition between prospective tenants.
Luxury listings attract the world’s rich and they choose to rent for a few different reasons.
- Temporary Transplants – They are relocating for a finite period of time – ex. A celebrity shooting a movie, or an international banker on a two-year consulting gig.
- Area Newbies – People who are new to an area often want to rent until they get to know the city and discover what neighborhood is right for them.
- Renovation Renters – When wealthy clients are renovating their homes, they will often rent a luxury apartment until their home is completed. This type of client is not willing to sacrifice their standard of living while they are residing in a temporary rental property and are looking for the best.
- Globetrotters – Many high-end renters own residences all around the world and don’t want the responsibility and maintenance of owning another home – they would rather use their assets for other investments.
- Low-Hassle Hunters – Some high-end renters simply enjoy the hassle-free lifestyle that is inherent to renting. If something goes wrong, it’s the landlord’s responsibility. They only need to cut a check every month.
Why list a high-end rental?
Having a high-end listing (say $7,000 per month or more) gives one the opportunity to create the ultimate snowball effect. One listing turns into a deal, several new clients, and the chance to market to the rest of the high-end world.
Once my team secures an upscale rental listing, we mail the entire building. Other owners in the building see that we are active within the building or neighborhood and seek us out to list their property for rent.
More importantly, these high-end neighbors can let their sphere of influence know about this availability before anyone else. I find that people are especially appreciative when they feel like they are one step ahead of the market.
Now how do you rent it? Price & market right.
Pricing high-end units is sometimes a challenge. There isn’t a huge crop of renters in the high-end range, so pricing is based more on the landlord’s needs. Does the landlord mind waiting a few months to find the perfect tenant who will pay the highest price? Or does the landlord need to rent the apartment quickly and take slightly lower rent?
The good news is, showing value to high-end owners is a bit easier than your average price point listings; they need us more. It’s important to remember that prospective tenants in the high-end range almost always work with brokers. They are too busy in their day-to-day lives and usually don’t have time to weed through apartments and schedule appointments.
For this reason it is important to market the property heavily to the brokerage community – through open house events, mailings and even through direct outreach via email or phone.