Excellent rental success in Ticino

Our rental specialists reduced the vacancy rate of the apartments by more than 8 per cent within a year.

Suva, an institutional property owner, owns several apartment buildings in the canton of Ticino in the Lugano and Bellinzona region, comprising a total of 231 apartments, as well as parking spaces and commercial areas. Previously, re-letting was rather sluggish. When Livit was appointed by the owners in the first quarter of 2022, the vacancy rate of the apartments was 9.5 per cent. Suva’s decision to entrust Livit with the Ticino real estate portfolio was a good one.

All services from a single source

Thanks to our project organisation team, we were able to provide Suva with an experienced contact person who will strategically advise and support it in the development of its portfolio on a long-term basis. In addition, our Key Account Manager is responsible for the overall coordination of all our services.

Integration into the Ticino branch

Our colleagues from our branch in Lugano integrated the four occupied apartment buildings into our professional property management system. At the same time, our rental specialists analysed the reasons for the vacant rental apartments and commercial premises and used them to come up with tactical measures.

Local marketing expertise

The housing shortage in Ticino is not as severe as it currently is in other regions of Switzerland. An average vacancy rate of 4 per cent is normal here. In addition, tenants are used to being able to choose from an attractive portfolio, and they often visit the same apartment several times before they decide. This is time-consuming and requires flexibility and strong arguments from our rental specialists. Fortunately, our Lugano branch is located just a few minutes drive from the properties.

In addition, one of the four properties presented a challenge in that the size of the site meant that the prospective tenants could not find their bearings well. We developed new, clear building plans, which helped them to find their way around. At the same time, we developed a marketing website where interested parties could find out more about the site. A targeted advertising campaign on social media reached the desired target group and triggered many requests for viewings. In the end, personal viewings of the furnished show apartments were successful.

Large commercial premises on the same site had been empty for some time. Generally speaking, commercial spaces of more than 100 m² are considered difficult to rent in Ticino. Nevertheless, our team has succeeded in communicating the benefits of the well-developed neighbourhood to the business community.

Fast rental process

Particularly in regions with a surplus of supply, the speed of our digital re-letting process is proving its worth. As soon as the interested party has filled in our online application form, the credit check takes place automatically. If all the checks are positive, we can submit an offer of contract very quickly. While other property managers are still receiving and studying applications and collection register extracts by post, we have long since offered the interested person a tenancy agreement. Thanks to this efficient digitisation, we were able to reduce the application process from seven days to one day. And those interested appreciate the convenience of the digital process.

Vacancy rate almost zero

This well thought out package of measures has proved effective. Just one year since we took over the mandate for this real estate portfolio, we have succeeded in reducing the vacancy rate of the apartments from 9.5 per cent to 0.9 per cent. This low level has impressed our client. So far, the situation is stable. We are confident that our strategy for optimum take-up of the rental properties will continue to prove itself in the future.

**Roger Lustenberger**
Suva, Head of Asset Management