If you’re wondering “how to rent my house to corporate housing,” we put together this step-by-step process to get you started.
While the pandemic initially slowed corporate travel, companies are returning to the office and employees are traveling again for business meetings and company meet-ups. Short-term corporate housing is growing more and more— if you’re thinking about renting your house to corporate housing, now is the time.
Typically it’s when businesses rent out apartments or homes to house employees for a given period of time. But these aren’t your standard rentals; corporate housing is usually fully furnished, serviced, and available for flexible stays. Anyone who owns a house or apartment can capitalize on this 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. Corporate housing provides property owners with the opportunity to rent their homes or apartments out to a company instead of the general public.
The benefits of corporate housing
The biggest benefit? Being able 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 the 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 of 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.
What you’ll need in your home
Depending on the business you are working with, your property may require a few prerequisites to pair with the company’s housing needs:
A kitchen stocked with food, beverages, and the basics
Toiletries and household supplies
Cleaning service
TV and internet
Brand-name appliances
If you are catering to high-profile residents 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, which will increase your profits even more.
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 target businesses and market your property
Before considering renting your home through a corporate housing company, figure out which businesses in your area need housing and whether you want to market your property directly to these companies, or through a third party.
Heads up: 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:
Write a letter to the HR staff at major businesses in your area (try searching LinkedIn for companies to target and send messages to their HR team)
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
Although the process can be tedious, it’s a necessary first step if you opt to market your property directly to businesses. But if you want to save more time, consider working with third-party companies. At Zeus Living, we provide full-service property management and marketing—all you’ll have to do is sit back and collect rent.
#2 Get to know your partners
If you choose to take everything on yourself then you should make time to understand your future partners. Here are a few questions you should ask:
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—make sure you figure out whether you or the company will be paying for the alterations and upgrades. Most companies will require you to pay for these adjustments out of pocket, but we take care of that for you.
#3 Agree on Alterations and Settle a Price
Once you’ve found a corporate client and understand the upgrades you’ll need to complete, it’s time to settle on a price. 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 to 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.
#4 Welcome New Tenants and Maintain The Relationship
Once you’ve 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 important to keep in contact with both the tenant and your HR representative to ensure that everything is running smoothly. Especially in the beginning, you want to ensure you’re 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.
While renting your property through corporate housing can make you a lot of money, it does require substantial investment—and comes with some risk. We take the hassle out of renting your home to corporate housing by doing the work for you. Visit our website to learn all about our property management services.
