Media Release

May 29, 2010

Corporate lease program can boost revenue by up to 50%

Investors are urged to consider taking advantage of Raine & Horne's North Sydney's Corporate Leasing Program which offers residential investors returns of almost double that of fixed-term leasing arrangements.

Established 10 years ago, the program offers residential investors the opportunity to list their apartment in a flexible-term rental program targeting the needs of the highly mobile corporate sector.

A range of studio, one, two and three-bedroom executive-style apartments is offered as cost-effective alternative accommodation for corporates and individuals visiting Sydney for reasons such as contract work or medical treatment. 

Raine & Horne North Sydney principal Duncan Grady said not every property had the potential to be a flexible-term rental, but those that did provided investors with a big advantage over fixed lease contracts.

"We operate about 50 fully furnished apartments in 10 to 15 unit blocks in the North Sydney, Milson's Point, Kirribilli precinct, leased predominately to corporate people needing short, medium or long term accommodation," Mr Grady said. 

"Our business model is based on an average 85% occupancy rate which means a good property can achieve a 5% net yield. This out-performs a traditional rental situation which typically returns a 2.5 - 3% net yield. 

The benefit for investors considering incorporating their residential investment unit into the program was obviously a better than average yield as well as flexibility in regards to exposure to large-scale events such as conferences, sporting events and festivals. 

"For example, during the Olympics we leased some properties for up to $10,000 a week and recently we supplied a lot of accommodation for a religious conference.

"Of course every great investment opportunity has a risk, and while flexible-term leasing can deliver higher returns, it's also more exposed to fluctuations in economic movement. 

However, Mr Grady stressed that when large events came to town and accommodation was at a premium, investors got a spike in return that usually offset any market fluctuations. 

"We have more than 4000 people registered on our occupant data base and count many re-location agents as our clients. Because our program is unique, we also get referrals from other agents in the area unable to offer a similar service.

"Some of our clients include financial planners coming to St Leonards for six-weeks at a time for training courses, and a commercial passenger ship captain needing a five-month lease.

The program appeals to people who want flexibility to extend or reduce their contract as needed and cannot be locked into a fixed lease. 

"That could apply to someone with an open-ended employment contract or even a country resident in Sydney for cancer treatment. 

We have people stay for as little as one week or as long as two years - it's flexible," Mr Grady said. 

For all your property needs contact Raine & Horne North Sydney on (02) 9925 1200 

Raine & Horne is an iconic Australian property firm, with more than 400 offices worldwide. Also an established Superbrand along with the likes of Qantas,Vegemite, Woolworths and Myer, the company has four distinct property service brands including Raine & Horne Residential, Raine & Horne Commercial, Raine & Horne Financial Services and Raine & Horne Rural. 

For further media information contact Duncan Grady, Raine & North Sydney, on (02) 9925 1200 or 0412 978 123.