There are many things to love about corporate housing, reliable tenants, and a stable rental income, among them. The question on most property managers’ lips is this: How can I break into the corporate housing market, and where can I list my property for corporate housing?
In this article, we will be exploring what corporate housing is, its benefits, challenges, where to list your properties, and how to keep them safe.
What is corporate housing?
Corporate housing, also referred to as executive housing or a company let, is a kind of mid-term housing arrangement specifically for renters who must travel or relocate temporarily for work. For the renter, this provides a number of advantages: instead of staying in an impersonal hotel room, for example, they can spend their time in a fully-furnished let that they can actually call home.
Usually, corporate lets last a month or more, and costs are covered by the company. The client base for these kinds of lets can also be quite varied, ranging from government workers to intern groups, all the way to traveling business people and military personnel. Generally speaking, these can all make fantastic tenants – reliable and quiet, unlike the often-rowdier crowds that tend to book out holiday lets.
Take a look at these 10 “must-have” clauses to include in your mid-term rental agreement.
How is corporate housing priced?
Corporate housing is usually understood to be a more cost-effective option for the tenant, especially when compared to a hotel.
As Landlord Studio explains it, if a hotel room in your property’s location is usually priced at $100 per night, the nightly cost of a corporate rental could be $50 per bedroom in your property.
It is also important to remember that the same rules apply here as they do to rental pricing in general.
While short-term rentals are associated with higher nightly prices, mid-term rentals – including corporate rentals – tend to be more profitable than long term rentals while requiring much less work and attention than short term rentals.
Following Landlord Studio’s example above, a three-bedroom house priced at $150 per night (again, $50 per bedroom) would yield about $4,500 per month. Not bad, especially when compared to average long-term rental pricing.
What is the difference between a short-term rental and a mid-term rental?
Beyond their profitability, there are a few other differences between mid-term rentals (MTRs) and short-term rentals (STRs) that are relevant to consider when it comes to managing a property.
MTRs tend to tap into a more niche market and client base than STRs.
This can be a huge benefit for property managers, as the market for MTRs is often considered to be under-exploited by rental experts.
There is good evidence to support this claim, including analyses like Intellihost’s, which pointed out that MTRs boast a 51% rate of occupancy compared to STRs’ 31%. This can provide a great sense of stability for MTR owners, as well as some much-needed peace of mind.
Owning a STR also requires a lot more time and dedication than a MTR.
While managing an STR, property managers have to worry about the constant switch-out of guests, expensive cleaning, and the occasional unplanned party.
This doesn’t apply when it comes to managing MTRs.
In these types of properties, switch-overs between guests are much less frequent, deep cleans are only provided occasionally, and your guest pool is composed of professionals rather than partying vacationers.
For this reason, it is very important to remember that guests at an MTR will have different requirements than guests at an STR. While the latter are there for a short time only, MTR guests will want to make a home out of your rental for a month or more.
For this reason, it is especially important that your MTR is appropriately set up for traveling professionals. Including a work area and high-speed WiFi, for example, can make all the difference while making an MTR feel like a truly comfortable space.
What are the pros and cons of corporate housing?
A lot of the pros associated with corporate housing are the same as those associated with MTRs in general. That being said, corporate MTR rentals do have a number of benefits of their own, including:
- Guarantees a professional client. One of the best parts of corporate housing is that you know exactly what type of person you will be renting to. Their association with a particular company can also provide a certain sense of security that is not often found with other types of tenants.
- Highly profitable. As previously mentioned, corporate MTRs will usually net higher profits than traditional long-term rentals.
- Stable. Corporate MTRs can be particularly stable rentals, especially in cases where your tenant travels to the same city often. If they feel at home at your rental, it is likely they will seek it out again. Corporate MTRs also allow property managers the possibility to make connections and deals with interested corporations or government entities, which might provide you with a steady stream of clients from a trusted source.
- Great for properties in big cities or industry centers. Corporate housing is particularly successful in areas where people tend to travel for work, such as big cities or business centers. This can make corporate MTRs a great way of expanding your portfolio in cases where the focus has previously been on holiday lets or resort settings.
But of course, all rental strategies have their downsides. Before jumping into the deep end of the corporate housing market, it would be wise to consider the following:
- Higher cost of entry. Due to the markets in which they operate and the fact that they have to be fully furnished and, ideally, include amenities such as high-speed WiFi, corporate housing can have a higher cost of entry than other kinds of rentals.
- VIP clients. It is important to note that some companies only invest in corporate MTRs for their most senior employees. For this reason, some corporate clients expect high-quality services and treatment from their property managers. If you are planning on catering to this kind of client, make sure that your property has all the proper amenities and take extra care to communicate with your client and their company to understand what their expectations are from the rental and yourself. (And always remember that luxury treatment comes with a luxury price!)
- Professional listings. While keeping a professional-looking listing is important for every kind of rental, it is especially important when it comes to corporate MTRs. Remember that your clients are professionals looking for a temporary home, so property managers must make sure their listing reflects that. This can involve investing in a professional photographer to take pictures of your property, making sure to highlight amenities such as washer-driers, microwaves, and dishwashers. Once again, this can add to potential overhead costs.
- Not appropriate for all markets. Just like MTRs fare particularly well in business centers and large cities, they are not great options for resort or holiday markets, where employees are less likely to be sent for work.
What are the best platforms to list a corporate mid-term rental?
Corporate Housing by Owner
Commonly known as CHBO, this platform is the largest provider of corporate rentals in the United States and Canada. It is quick and easy to set up a listing here, and it also allows for quite a bit of flexibility compared to other similar sites. For example, CHBO allows property managers to contact potential renters before finalizing a reservation, giving them the chance to get a feel for their circumstances and build a trusting landlord-tenant relationship. Annual plans at CHBO start at ****$399, and they will extend your annual listing plan for an additional 6 months free of charge if you are unable to rent your property within 30 days.
Furnished Finder
While not as specifically targeted towards corporate bookings as other sites, Furnished Finders is still very much worth your time. With 15 million annual users, many professional renters do find their homes-away-from-home using this well-established platform. Like CHBO, this site gives property owners full control over their rates and tenant contact, meaning you get to decide how much you will be making and who you will be hosting. Additionally, Furnished Finders does not charge commissions or booking fees, meaning you keep 100% of the rent, 100% of the time.
National Corporate Housing
With its headquarters in Denver, Colorado, National Corporate Housing has been working for 26 years to provide temporary housing across the United States, Canada, Asia Pacific, Europe, and the Gulf region. They are well-known for their impeccable customer service and their travel specialists who guide tenants through every step of the rental process. To list with them, you must contact the National Corporate Housing team through their online form and wait for a member of their team to contact you. Once they do, you can rest assured that they will manage the leasing process for you – perfect for property managers looking for a more hands-off rental experience.
Blueground
Blueground is the perfect rental platform for property managers with new (or newly renovated) unfurnished properties in their portfolios. When you use this platform, everything is covered: from listing and managing your property all the way to furnishing it and, of course, finding the best corporate tenants to live in it. Its rental guarantee is also a fantastic boon, as it means the platform will pay you every month regardless of if your property is empty or not. This makes Blueground a great option for property owners looking for a low-maintenance rental process.
Atease
Geared specifically at hosting government workers, Atease is a platform where military personnel federal and state employees, veterans, first responders, and government contractors can find short or mid-term rentals that fit their needs. This makes for a reliable pool of clients to draw from as a property manager. To list your property at Atease, you must pick a plan and undergo a property inspection that will check whether your property is appropriate for government workers. Once your property is deemed government-approved, it will be added to Atease’s listing pool.
Or try direct bookings!
One of the best ways to maximize your profits from a corporate rental is to incorporate direct bookings to your marketing strategy. This can be easily accomplished by making a website for your property. Once you have built up a trusting relationship with a tenant, it can be a good idea to direct them to your property’s website for any future bookings, perhaps offering a discount or other perk if they use it instead of a third-party website.
Alternatively, you can also explore more of our top mid-term rental platform picks by following this link.
How can you safely rent out a corporate mid-term rental?
Corporate housing can be a stable and reliable alternative to other kinds of rental strategies. However, there is still a risk of encountering fraud and bad actors in the world of corporate lets. Before accepting any bookings, Comfy Workers recommends making sure that you trust the company you are working with.
It is also worth investing in a procedure that will screen your tenants, such as Truvi’s Guest Screening Service. Truvi’s software will protect your property from problematic tenants by validating private information like a guest’s name, email, and address.
This is particularly important for corporate rentals: tenants will be staying at your property for an extended period of time, so it is important to make sure they are deserving of your trust. With Truvi’s guest screening service, you will be able to flag suspicious bookings, screen guests against an internal watchlist, and protect yourself against last-minute bookings.
Some corporate housing owners also opt to purchase insurance plans for their properties, usually in the form of landlord insurance with some additional protection packages attached.
However, if you can’t find an insurance policy that works for you, don’t despair. There are other services that can help you keep your property safe from damage and fraud.
Damage waivers, for example, can give you and your tenant peace of mind knowing that potential accidents have already been covered.
Taking a deposit from your guest at the beginning of their stay is another option, giving you a pool of funds to use when it comes to fixing damaged property or covering cleaning costs once their stay ends.
Truvi’s Damage Protection Service is also an option in this regard, as it covers damages from US$500 to US$5,000,000. Thanks to its Swift Resolution Process, you can also expect a fast turnaround in every decision, usually within 5 business days, all of which can be easily managed through Truvi’s online platform.
| We protect against: | We don’t protect: |
|
We don’t protect:
|
