Land Lease vs. Land Development: The Crucial Role of Customer-Centric Team Culture

There’s a unique challenge emerging in the land lease sector.

Traditional residential land developers are accustomed to acquiring sites, developing land, selling it, and then moving on. While some developers show commitment to community building, it's not always a priority, nor is it consistently expected of them.

So, as more residential land developers look to expand into the senior living market, particularly in the lucrative over-50s land lease communities, there's a risk of underestimating the significance of community building and how to hire the right team to support it.?

After all the happiness of the customer is an essential component of the success of these land lease communities who have a long-term commitment to residents not just the asset.

The question is: do these developers have the internal capabilities to deliver these communities and foster vibrant, happy communities where retirees thrive?

The transition from developing residential development to land lease communities requires more than just hiring new operational roles and running events. ?It demands a cultural shift within the organisation, that stretches across all disciplines and one that can still be efficient to execute. ??

Becoming an efficient, lean team doesn't need to come at the expense of having a customer-centric team culture.

While traditional disciplines like sales, marketing, and development remain important, they need to be re-defined through the lens of land lease operations and the ultimate vision they are trying to acheive. This isn’t just another property asset—it’s a shift in responsibility.

As a land lease developer, you’re not just selling and walking away; you’re committing to the long-term quality of life for your residents. This shift magnifies subtle considerations that might not carry the same weight in traditional residential land projects, such as:

Overpromising in marketing: The stakes are higher when promises extend into the future.? After all we still remain connected to the customer post settlement.

Promotions and price reductions: These need to be carefully balanced to maintain community trust and build referral base.

Defects and quality control: With a long-term relationship, issues must be addressed proactively.

Facility design: It’s not as simple as rolling out stock standard facilities, each facility offering needs to be considered for the target customer, but also must balance marketability versus operational functionality.

Move-in experience: This isn’t just about receiving a welcome present, this is a critical step in the process of building a sustainability community where residents play a key part in driving the social calendars, rules and responsibilities.

Building community: Creating a sense of belonging is paramount in a land lease environment, and starts well before taking a deposit, meaning earlier planning, resourcing and budgets are required.

Consider this: Project teams function best and tend to put the customer first when there is mutual respect for each role, clear responsibilities, and a shared commitment to developing, selling, and nurturing communities.

In land lease communities, hiring the right people and fostering the right team culture in my opinion, is more critical than in traditional residential land development.

So what type of general traits (outside of their function) should a land lease developer be looking for when hiring and building marketing, development, operations and sales teams for a land lease community?

Customer-centric Mindset: A genuine interest and commitment to understand the residents' needs and factoring that into their business and project decision making process.

Sales Mindset: Regardless of their role, a sales mindset means taking ownership of one’s role in the sales process, no matter how small. All staff should be actively look for opportunities to enhance the resident experience, convey the offering and contribute to the project’s success.

Empathy: Understand the lifestyle and expectations of the community’s residents, ensuring the physical environment meets their needs.

Cost Efficiency without Compromise: Balance cost control with quality, ensuring that financial savings do not come at the expense of resident satisfaction or the quality of the community.

Strategic Thinking: Ability to align financial planning and budgeting with the long-term goals of creating a thriving, sustainable community.

Attention to Detail: Focus on quality and anticipate potential issues that could impact residents' satisfaction.

Adaptability: Ability to respond to the changing needs and feedback from residents, making adjustments as necessary.

Collaboration: Willingness to work closely with other disciplines to create a seamless, integrated experience for residents.

Continuous Improvement: A drive to constantly improve the community and the resident experience, learning from feedback and experience.

So, how is your team culture shaping up? Do you have the right internal capability with the right traits to deliver successful land lease communities into the future?

Tune in next week as we talk about how developers can build an interdisciplinary sales mindset so they can achieve more with the resources they have.

Welcome everyones thoughts an comments!