Agency advises landlords on enhancing properties
Landlords of smaller serviced apartments wishing to compete with major players in the market should be able to provide innovative and value-added services to attract tenants.
Michael Fung, marketing manager of Luxury Rental, said that as competition intensifies, landlords were compelled to add new, distinguishing features to their marketing strategies.
He said landlords should add value to properties, extend extra services to tenants and provide a level of differentiation from their competitors.
Luxury Rental, an agency that specialises in the niche market of serviced apartments, offers advice and solutions that could help smaller landlords who wish to enhance the value and appeal of their properties.
The agency advises landlords on building refurbishment and repackaging, marketing activities, leasing, and also arranging for general contractors and suppliers.
The agency also helps landlords to create value-added services by establishing relationships with gyms, spas and health service providers.
Luxury Rental's sister company, Easy Living, provides personalised concierge services in areas such as housekeeping, lifestyle, event management, home furnishings and, of course, concierge services.
'By establishing these services, small landlords benefit from economies of scale that are not usually available to them,' Mr Fung said.
'The benefits for the landlord from Luxury Rental are numerous. The process is hassle free, and they learn to attract more tenants, minimise vacancies and, most important of all, enjoy increased rates of return.' Units carrying value-added features and services could command higher rents, he said.
For example, average rents for conventional apartments in Mid-Levels are in the range of $25 to $30 per square foot per month. But extra features could add a net premium of $3 to $5 to each square foot, he said. Luxury Rental recently marketed five units owned by an individual landlord in Fairlane Tower in Bowen Road, Mid-Levels, as serviced apartments.
Mr Fung said the units included European finishes with marble and tiles sourced from Spain and Italy to suit expatriate tastes. The units come complete with clubhouse facilities and personalised concierge services.
The units measure 1,118 sqft to 1,700 sqft and command a monthly rental of $45,000 to $63,000. The leasing response was encouraging, he said.
Luxury Rental is also leasing three serviced units owned by an individual landlord in Manhattan Avenue in Sheung Wan at a monthly rental of $12,000 to $16,000.
With the luxury residential market progressively growing and companies returning to Hong Kong, small landlords could seek agency expertise to enhance their property returns, Mr Fung said.
He pointed out that expatriate employment contracts were shorter than before, and more flexible leasing terms were required.
Shorter stays and increased business travel have discouraged expatriates from bringing over furniture or spending too much time and money fitting out apartments. The need for serviced apartment-style housing is growing steadily.
Newcomers to Hong Kong were drawn to furnished apartments, with fully equipped kitchens and amenities such as a maid service and dry cleaning, he said. Serviced apartments in Mid-Levels and Island South were especially popular among expatriates.
