If you are a property owner looking to make money from your rental, then corporate housing could be the solution for you.what is corporate housing? refers to a furnished apartment, condo, or house that is offered for rent on a short-term basis. It is ideal for business travelers and others who need a home away from home while they are on an extended stay. Corporate apartments provide a more comfortable, home-like environment than hotels and allow tenants to save money on hotel meals by cooking in their own kitchens.
According to the Corporate Housing Providers Association (CHPA), professional-managed corporate housing offers fully furnished temporary apartments and single-family homes to individuals, military personnel, intern groups, and corporations on a short-term basis. Generally, stays are longer than 30 days but shorter than a year. It is usually managed by a third party and includes all furniture, household items, utilities, cable, internet, and a cleaning service for the home.
The primary audience for these rentals is people who are displaced from their homes due to work-related travel, training, or relocations. Other potential customers are people who need a long-term rental for family members being treated in a hospital, contractors who need to stay near their work sites to complete renovations or repairs, or victims of natural disasters who require long-term recovery assistance.
While a hotel is an option for some travelers, it can be quite costly. Corporate rentals are an economical alternative and have the added benefit of being fully furnished. Having the comforts of home in a new city can make the transition easier and less stressful. In addition, some employers will pay for the cost of corporate apartments to help employees relocate with ease.
Besides providing the convenience of a fully-furnished apartment or house, corporate rentals are often located in desirable areas with amenities that appeal to this clientele. For example, many properties will offer fitness centers, pools, and other recreational facilities that are not always available at traditional hotels. Many are also pet friendly, which is a huge plus for those who have to leave their pets behind when they are on an extended assignment.
Ultimately, renting out a property as corporate housing requires careful consideration of the market and the target audience. However, if done successfully, it can be an excellent revenue stream for the landlord. By adapting the property to cater to specific clients, such as those who want luxury environments or those who prefer a homier feel to their living spaces, it can be a highly profitable way to operate a rental. Unlike vacation rentals, the tenant pool for these rentals is far more stable. The demand for this type of housing is expected to continue growing, especially as the economy improves. For this reason, it is an excellent time for investors to consider developing or purchasing a property to rent as corporate housing.