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As corporate life becomes increasingly mobile in the modern working environment, 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.
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!
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:
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.
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?
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:
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:
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:
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.
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.
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.
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:
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.
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—they 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, as they will ensure your property meets corporate requirements, is marketed correctly, and targets the appropriate customers.
If you have decided to do it yourself, then it is 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:
Ideally, you will 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!
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:
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.
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.
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