How to Rent My House to Corporate Housing
If you’re wondering “how to rent my house to corporate housing,” we put together an informational step-by-step process to get you started.
As corporate life becomes increasingly mobile, more and more companies are planning their first business trip and searching for adequate short-term corporate housing options for their on-the-move staff. This has presented an opportunity for property owners to make a substantial premium over traditional rent payments. If you want to know how to rent your house to corporate housing, we’ve got answers.
Anyone who owns a house or apartment can capitalize on this emerging housing market. Whether you own a single property, an entire apartment building, or several homes, corporate housing is paying huge dividends for landlords across the country.
There are several key benefits to be aware of when deciding to rent your property to a business. Here we provide you with a step-by-step overview of preparing your property for corporate housing and how to make the most out of the process!
Understanding Corporate Housing
Before getting into the ins and outs of renting out your property, it will be useful to gain an understanding of what corporate housing is, along with its key benefits and requirements.
When a business requires accommodation for its employees, it can either place the staff member in a hotel or seek out alternative accommodations. Corporate housing is when businesses rent out apartments or homes to house employees for a given period of time.
There are a few key types of corporate housing options worth noting:
- Short-term housing
- Long-term housing
- Insurance company housing
When a company transfers a member of its staff, at times it will provide a corporate housing option for the employee. In these instances, companies will either provide the individual with a short- or long-term solution.
If the employee is only being transferred for a specific period, it is common for the company to provide corporate housing for the duration of the stay. If it is a permanent transfer, companies may provide housing to an employee for a specific tenure, allowing the individual to search for their own property. Additionally, insurance companies will rent out properties for displaced clients who have had an issue with their home that is covered by insurance. This represents a major revenue stream for property owners that choose the corporate route.
Rent Your House to Corporate Housing: A Great Opportunity
In any case, corporate housing provides property owners with the opportunity to rent their homes or apartments out to a company instead of the general public. But what are the benefits of doing so?
Key Benefits of Corporate Housing
The most obvious benefit of renting a property to a business is the ability to charge higher rental fees. Landlords can justify the increased rent because businesses usually dictate their own specific requirements associated with corporate housing:
- Properties are fully furnished to a high standard
- Every home includes all the necessary appliances, utilities, and amenities
- Artwork and design must create a welcoming atmosphere
- Continuous communication with company HR team and tenants is crucial
- Maintenance and cleaning services should be included
- Additional premium options may be required
Because of these requirements, a property manager can typically justify pricing their property at 2 to 3 times the typical asking price, or even more. Even when considering the investment required to meet the standards of corporate housing, the ability for landlords to price at such a level will immediately increase revenues.
Additionally, dealing specifically with a business as opposed to individual tenants can take the pain out of managing complaints or other potential problems. If you work with a specific business, the company may rent out the property at a premium so that they consistently have accommodations available to incoming employees and their families.
Depending on the business you are working with, your property may require additional prerequisites to pair with the company’s housing needs:
- Kitchen stocked with food, beverages, and all necessary supplies
- Toiletries and household supplies
- Cleaning service
- TV and internet
- Brand-name appliances
If you are catering to a more premium clientele such as executives or members of the management team, you may need to prepare your property with luxury amenities and services:
- Car or transportation options
- Security or doorperson (apartments)
- Package and mail delivery
- Frequent cleaning service or on-site staff
- Chef or food delivery
While equipping your property for these services will require a larger investment, it will allow you to charge at a premium, increasing your profits even more.
Regardless of the type of tenant you’re targeting, you will likely need to make some of these important adjustments to prepare your property for corporate housing.
Our Step-by-Step Process
If you’ve recently decided, “I’m going to rent my house to corporate housing,” then this step-by-step process will help you attract the right businesses and get your home ready for corporate tenants.
#1 Determine Your Targets and Market Your Property
Before considering renting your home through a corporate housing company, it is necessary to determine what businesses are in your area that require such housing and whether you want to market your property directly to these companies, or through a third party.
What Are Your Business Options?If you live in an area where there are only a few major businesses, this part won’t be easy. However, any large town or city will have various companies available that could require corporate housing.
To start generating a buzz and marketing your own company, you must:
- Begin by writing a letter addressed to the major businesses in the area, with a focus on HR staff
- Search LinkedIn for companies to target and send messages to the HR team indicating your interest
- Research the major insurance companies in your area for home, flood, fire, earthquake, and other types of property insurance
- Reach out to these companies directly and online
- Consider calling the companies directly to inquire
While this can be a laborious process, it is a necessary first step if you opt to market your property directly to businesses. However, third-party companies exist to optimize and simplify this process.
Enter Zeus Living.
Zeus Living: Let Us Take Care of Everything
Because corporate housing is on the rise, third-party providers have emerged that take care of the process of renting out your property, managing it from end to end.
Zeus Living provides full-service property management and marketing—we do the legwork while you sit back and collect a monthly rent check.
In fact, this step-by-step guide is rendered obsolete once you’ve decided to partner with Zeus— we’ll ensure your property meets corporate requirements, is marketed correctly, and targets the appropriate customers.
#2 Get to Know Your Partners
If you want to do it yourself, then it’s important to gain an understanding of your future partners. While it is not advised that you handle this alone (especially being that you might not be paid for the full worth of your home), a few questions you will want to ask include but are not limited to:
- Does the company plan to rent the property on a short-term or long-term basis?
- Will the rental agreement cover periods when the property is vacated?
- How often does the company expect tenants?
- What are the requirements for the home? Who will pay for alterations?
- Are there any additional services required?
- Will there be construction costs?
Ideally, you’ll be working with a company that decides to rent out your property on a consistent basis and provides you with a list of alterations that will be required to move forward with the lease.
It is essential to determine whether you or the company will be paying for alterations and upgrades on your piece of real estate.
Unfortunately, most individual companies will require you to pay for these adjustments out of pocket. However, here at Zeus, we provide you with a consistent monthly rental payment and provide all the necessary upgrades for you!
#3 Agree on Alterations and Settle a Price
Once you have found a corporate client and understand the upgrades you will need to complete, it’s time to settle on a price. It’s important to consider how much you need to spend on upgrades and additional features prior to locking in a contract. First:
- Calculate all the construction costs
- Determine the costs of furniture and amenity upgrades
- Create a monthly projection of all additional services
- Be sure to add a premium onto these costs and services
Traditionally, the cost of renting an apartment is about 1% of the home’s value per month. For corporate housing, the cost will be at least 2-3%, and this will increase depending on the level of amenities and luxury items available.
This, of course, is another benefit to using Zeus. Being that they already have partnerships in place and understand the housing market intuitively, they will be able to negotiate the most lucrative and fair prices.
#4 Welcome New Tenants and Maintain The Relationship
Once you have settled on a rent price and drawn up the contract with your corporate client, you can now begin welcoming new tenants!
During this process, it is essential to keep in contact with both the tenant and your HR representative to ensure that everything is running smoothly. Especially in the beginning stint, you want to ensure you are listening and responding to feedback—it would be a shame for you to invest in your home, prepare it for corporate housing, and then lose your client or tenant due to a lack of communication.
The Zeus Way
While renting your property through corporate housing can be a profitable endeavor, it does require substantial investment—and it is not, by any means, devoid of risk.
Avoid the hassle, mitigate the risk of dollars spent on upgrades, and benefit from the extreme profitability of corporate housing with Zeus. Get in touch, tell us about you, and we will generate a quote and send it your way. With rent guaranteed, high-quality residents, professional upkeep, Zeus-provided furnishing, and 24/7 owner support, why take the risk?
Together, we can shape your space into a lucrative corporate housing solution!
CNBC. Your Home as Corporate Housing: It Just May Get You a Job. https://www.cnbc.com/id/43269087
Landlordology. How to Make Extra Money with Corporate Housing. https://www.landlordology.com/make-extra-money-with-corporate-housing/
SF Gate. How Do Executive Rentals Work? https://homeguides.sfgate.com/executive-rentals-work-100399.html
SmartAsset. How to Figure out How Much You Should Charge for Rent. https://smartasset.com/mortgage/how-much-you-should-charge-for-rent