Corporate Housing: Who, What, Where & Why #2

What makes a successful corporate housing provider? What makes a successful Corporate Housing Renter? Where is the corporate housing industry going? Why do people use corporate housing? Who provides corporate housing? Should I pay or charge a security deposit? What about pets? How do I find a corporate housing rentals?

Your information is essential to assure together we are all more successful – If you own or manage corporate housing rentals please take a minute and complete the 2014 Survey and get qualified to win an IPad Air!  

What we learned from last year’s Corporate Housing Survey #2..

Topic: Outlook and Profitability of Corporate Housing Rentals

  • Outlook for 2014. 36% of respondents predict that 2014 will be betteReal Estate Trendsr and more profitable than 2013 – similar to responses in 2012. Only 6.3% of respondents believe that 2014 will be less profitable, down from the 10% who had this outlook in 2012.
  • Profitability. 91% of respondents report that their properties were profitable or breakeven in 2013. Overall, this response has been nearly identical over the last three years.
  • Investment Real Estate Trends. For the fourth year in a row, there are more “Yes, I plan on buying more real estate” responses (45%) than “No, I’m done with real estate” responses (15%). The biggest variation in this question has been the steady 11% decrease in the “No, I’m done with real estate” responses since 2010.

Take the 2014 Survey now and get qualified to win an IPad Air!  

Read the 2013 Annual Report.

Corporate Housing: Who, What, Where & Why #1

What makes a successful corporate housing provider?  What makes a successful Corporate Housing Renter?  Where is the corporate housing industry going?  Why do people use corporate housing?  Who provides corporate housing? Should I pay or charge a security deposit?  What about pets?  How do I find a corporate housing rentals?

Corporate Housing ReportSo many questions so little time…  Here at CHBO we are passionate about people and finding ways of connecting the best possible corporate housing options with the best qualified renters.  For over 9 years CHBO has worked to develop a web platform to connect the world of travelers and the world of corporate housing rentals.  Now for the 6th year we are conducting our annual survey of the corporate housing real estate industry from which we are able to provide the Annual Corporate Housing Real Estate report on the trends and expectations of our industry.

Your information is essential to assure together we are all more successful – if you own or manage corporate housing rentals please take a minute and complete the 2014 Survey and get qualified to win an IPad Air!  

What we learned from last year’s Corporate Housing Survey #1…

Topic: Survey Respondents

  • Property Locations. Hundreds of property owners from across the United States (including 38 states, the District of Columbia and Puerto Rico) and Canada responded to the 2013 survey. The highest response rate came from property owners in California, followed by Colorado, Texas, Washington and Illinois.
  • Number of Properties. 42% of respondents say they have one rental property – about the same as 2012. Meanwhile, 41% report they have two to five properties. This group is up from 35% in 2012 – but the percentage is back to a similar level seen in 2010.
  • Years as a Corporate Housing Landlord. 38% of respondents say they have been furnished landlords for five years or more. This number has continued to grow over the last few years (up 4% over 2012 and up 13% over 2011), indicating that property owners are finding long-term financial success in their rentals.
  • Reasons for Being a Corporate Housing Landlord. At an all-time high, 59% of respondents said the reason they are corporate housing landlords is for the long-term investment.
  • Corporate Housing Terminology. Similar to last year, 75% of respondents list their rentals as “corporate housing,” followed by 51% who list their properties as “furnished rentals.”  After two years of seeing a decrease in the number of people who refer to their properties as “vacation rentals,” there was a slight 4% increase in that terminology.

Take the 2014 Survey now and get qualified to win an IPad Air!  

Read the 2013 Annual Report.

Top 6 Questions about Temporary Living #3

CHPA, or the Corporate Housing Providers Association is the international trade organization for the multi billion dollar industry of corporate housing or more simply temporary living.  Recently CHPA asked several corporate housing providers to clarify common questions of corporate housing guests.  We thought this was great information for both corporate housing providers and tenants to know.  The following excerpts have been approved for re-print by CHPA.

 

Question 3: Temporary Living

Why can’t we get a volume discount for larger temporary living groups such as a summer intern group?

Corporate housing costs for expenses such as rent and utilities are fixed costs. They do not change regardless of the number of units a provider manages at a property. In addition, market forces can make offering discounts difficult, especially in summer months.

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Top 6 Questions about Temporary Living #2

CHPA, or the Corporate Housing Providers Association is the international trade organization for the multi billion dollar industry of corporate housing or more simply temporary living. Recently CHPA asked several corporate housing providers to clarify common questions of corporate housing guests.  We thought this was great information for both corporate housing providers and tenants to know. The following excerpts have been approved for re-print by CHPA.

 

Question 2: Temporary Living

Why does availability change from day to day for Temporary Living / Corporate Housing?

Availability fluctuations seem mysterious in the corporate housing world; however, the answer is simple. While there are many options when it comes to hotel choices, availability at apartment communities is at an all-time low across the country. Available inventory is often difficult to locate and once an apartment has been returned to the community, it might not be available to rent again. These communities are looking for long-term renters, so a returned apartment is often immediately re-leased.

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Investing: Avoid Scams – 7 must ask Questions

Over the years CHBO has worked a lot with Personal Real Estate Investor Magazine. We have traveled across the country to present Corporate Housing real estate investment strategies at their Leadership Summits, we are a featured blogger on their online magazine and even serve on the magazine’s Editorial Advisory Board. We do all of this because we do believe real estate investing is something that every smart investor should do, however we also believe there is a large learning curve between wanting to make money in real estate and actually seeing money in the bank. For too long the “get rich quick” real estate infomercial has been taunting the unsuspecting investor.  Making Money with Rental Properties

Avoid Scams! Yes, We want you to invest in real estate.Yes, We have seen real results.  But all real estate deals must be researched, verified and quantified before you make the wrong deal. Remember real estate investing is a business and don’t treat it like a casual hobby.

This month there was a great article in the magazine “Seven Signs you are being Scammed,” pickup the current Person Real Estate Investor Magazine at your local store and read more…

Here are some questions to get your started:

Avoid Scams: 7 Questions to Ask Before you sigh up for than next Real Estate Investment.

  1. How long have they been investing in real estate?
  2. How many real estate properties do they personally own? (Verify it, don’t just take their word for it )
  3. How does their investment technique actually work and do the math?
  4. Is the program legal and does it work in the CURRENT real estate market?
  5. Referrals, What do other investors say about the program?
  6. How much does the entire program cost?
  7. Is there a money back guarantee?

Did you know CHBO has a Guarantee? 

Personal Real Estate Investor has added a Real Estate Watchdog to its website to make your investing safer and better informed.

 

Top 6 Questions about Temporary Living Average rates #1

CHPA, or the Corporate Housing Providers Association is the international trade organization for the multi billion dollar industry of corporate housing or more simply temporary living. Recently CHPA asked several corporate housing providers to clarify common questions of corporate housing guests. We thought this was great information for both corporate housing providers and tenants to know. The following excerpts have been approved for re-print by CHPA.

 

Question 1: Temporary Living

The industry average for temporary living is $140 per day. This equates to a $4200 per month apartment and seems expensive. What comprises this rate?

When seeking quotes for corporate housing, guests are often tempted to compare this lodging option to extended stay hotel rates. While rates may be similar in some markets, they are vastly different in many others.  Be sure to analyze that you are comparing like items.  Simply comparing daily rate is comparing apples to oranges. Think beyond just a roof and a bed, and includes all the items that make a house a home.

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Happy Halloween: Remove the Scary from Property Management

5 Tips to take the Halloween Scare out of Property Management

The truth is, nothing is more scary than the unknown, and sometimes property management and corporate housing can fall into that category. As in all haunted houses, when you turn on the lights the reality is far less scary than your imagination.  That is why, here at CHBO, we work hard to share with Corporate Property Management Halloween Funyou all that we have learned about managed corporate housing. Success in real estate comes when you know what to expect, you plan ahead and you connect with your goals. Loosing money is VERY scary so don’t do it.  Don’t waste money on the wrong property upgrade!  Don’t waste money on the wrong tenant! Don’t waste money on the wrong investment! Let’s get smarter about property management.

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Real Estate Investing: When is it Time to Buy or Sell?

When is real estate investing the right decision for you and for the market and would a corporate rental property be a good idea?

 

I was meeting with my financial advisor this week and we were discussing “Dollar Cost Averaging”.  According to Wikipedia “Dollar cost averaging (DCA) is an investment strategy for reducing the impact of volatility on large purchases of financial assets such as equities. By dividing the total sum to be invested in the market (e.g. $100,000) into equal amounts put into the market at regular intervals (e.g. $1000 over 100 weeks), DCA reduces the risk of incurring a substantial loss resulting from investing the entire “lump sum” just before a fall in the market. Dollar cost averaging is not always the most profitable way to invest a large sum, but it minimizes downside risk.”  Buying a Corporate Rental

I know DCA makes sense, but is it an approach to be applied to real estate?  YES! If I look back over my 20 years of real estate investing my biggest successes were all about market timing, but did I really know that when I bought?  No, not really :)  My challenge today is more about adjusting my expectations because not all real estate purchases can be as good as my best ones.  However, if I sit on the sidelines too long and don’t keep investing I will have no financial successes at all.

TIP:

So my advice is DCA!  Think of real estate in the terms of Dollar Cost Averaging which means it is always a good time to buy and always a good time to sell, the devil is just in the details.

Start by setting specific goals for your investment.  Do you want the property to have a positive cash flow from day one?  Do you expect the value of the property to go up significantly so you make your profit in equity increase?  Do you want to use the property as an wealth transfer tool to the next generation?  Do you want the property to be part  of your 401K? Do you have the time to make more money by doing a corporate rental?

What you buy and how you finance it will greatly depend on what your goals are, so don’t buy the wrong property for you.  I talk more about this in both The Corporate Housing Handbook and Idiots Guide: Making Money with Rental Properties.

News Today:  According to the June 2014 Fannie Mae National Housing Survey

40% of Americans say that now is a good time to sell.

70% say it’s a good time to buy.

48% feel that home prices will go up in the next 12 months.

Lodging News: Increase in Defense Department TDY Rates

Travel Trends: How TDY Rates encourage the military traveler to use Extended Stay and Corporate Housing Lodging Solutions

Each year the defense department relocates hundreds of thousands of individuals and families in addition to all the long term projects that need housing around the world.  In the last few years there has been a decrease in military demand for Corporate Housing Rentals.  However with new TDY (Temporary Duty) reimbursement rates for stays longer than 30 days, that go into effect November 1st, 2014, we will start to see an increase in the military’s use of corporate housing as a cost savings option compared with utilizing hotels.

According to a recent article published by the Department of Defense:  “changes are meant to give long-term TDY travelers an incentive to seek out extended-stay lodgings, which generally are less expensive. Before this change, the Joint Travel Regulations encouraged travelers on extended TDY to seek out this type of lodging, but there wasn’t a requirement or incentive to do so.”

and they go on to say,Many of the conveniences available at extended-stay hotels can save money for travelers, and in turn, for DoD, Johnson said.  “They offer the kitchenettes, the sink, the refrigerator — recognizing that people aren’t eating out at an expensive restaurant every day, three meals a day,” he explained. “And I believe that’s vital in this environment of sequestration and other external factors that have brought this on. So, we’ve got to make sure that people are traveling smarter and more [efficiently].””

It is exciting to see the DoD acknowledge the benefits of staying in a fully furnished residential property like the corporate housing lodging solutions available on Corporate Housing by Owner (CHBO).

Did you know…

CHBO works hard to connect properties near military facilities with those military individuals in need of housing.  Though our affiliate site Military Corporate Housing we work to make military housing a priority.  To learn more about featuring your property on one of CHBO’s affiliate sites talk with a CHBO Property Specialist at 1.877.333.2426 or submit your property for a free evaluation.

DOD Housing

 

Rental Properties: Design Ideas for the Corporate Tenant

Here at CHBO we get a lot of questions from property owners about what does a great Corporate Tenant expect from my property.  The truth is they expect a lot!  To be a great corporate housing landlord you need to understand what the tenant expects, communicate what they should expect from your property and then meet or exceed those expectations.   Setting and meeting expectation will ensure all of your corporate housing tenants are satisfied with their rental experience and will give your property a great review making it easier for you to connect with that next great corporate housing tenant.  So what are some easy ideas from the experts to make your space perfect especially if you have limited space?  Today guest blogger Rheney Williams  will give us some ideas.

Rental Design Ideas for the Corporate Tenant: Space-Saving Storage for Smaller Bathrooms

Great corporate tenants don’t need the biggest rental space, but they do require quality and efficiency. When decorating your rental property think about the little touches that will make your tenant’s stay the best possible.

Just because your bathroom may not come equipped with nooks and crannies for tucking things away and closet space to spare, there’s no reason you need to skimFurnished Rental Upgraded Bathroomp on what you keep in there, or settle for a less appealing place to offer prospective tenants. After all, smaller bathrooms need to stock the same items as their larger counterparts — just in a smarter way.

Fortunately, there are many great products out there to help with that. At the same time, it’s all about using the space you have more efficiently and more effectively. Consider the following.

Shower Savers to make your Corporate Tenant Happy

Small shower? There are several different ways you can make the most of your available space without sacrificing the quality of your shower experience.

Rental UpgradeFirst, you can hang a shower caddy over the top of the shower head.

This places everything you need right at eye level, yet still out of the way, and allows you to keep the shower floors free of clutter, leading to a safer shower and less time spent cleaning up dirty rings on the floor when it’s time to clean the shower.

Although you can drape a wash cloth over the bottom rack, my husband prefers to hang his handheld mirror here to allow him to shave in the shower. As any busy wife or fastidious roommate can attest, it’s extremely annoying to have to deal with a puddle of water in front of the vanity (or a soaked bathmat) and facial hair remnants in the sink from a pre or post-shower sink shave.

Or maybe you prefer the freedom that comes from storing everything out of the way and in the far corners of the shower; for that, you need a corner caddy.

When we were first married, my husband and I shared an apartment with one bathroom; although he could have survived with a single bar of soap on the side Rental Bathroom Featureof the tub, we ladies need our toiletries, and the baskets in the corner caddy we installed were perfect for holding my shampoo, conditioner, body wash, face soap, shaving cream…you get the picture!

The non-permanent nature of the corner caddy was a lifesaver when it came to sharing the shower, and we were able to remove it and take it with us when we left.

A little organization tip when using a multi-tiered corner caddy: Place loose bars of soap on the bottom rack to avoid the slippery conditions created on the items below by picking up and putting down wet bars of dripping soap during a shower.

Finally, if you have multiple people using the same small shower, a great way to keep everyone’s items together yet distinguished from each other is to hang multiple wall baskets from suction cups in corporate rentals.Rental Update

Look for two-leveled baskets like the one above to prevent frustration and wasted time spent trying to grasp or locate a slippery bar of soap that is on the same level as the other basket contents.

Saving on Floor and Cabinet Space

In our downstairs powder room, we have a spatial problem of a different kind: The bathroom only has space for a pedestal sink and a toilet. I’ve had to find creative ways to make up for the lack of a vanity, with its super functional drawers and closeable cabinet door, and the presence of just enough clearance to walk in and turn around.

If you find yourself dealing with the same difficulties, the perfect way to make the most of a lack of floor space and cabinet storage is to merge the two and use multi-tasking items. For example, a toilet caddy with a magazine rack serves dual purposes and keeps reading material off of the back of the toilet or the floor.Bathroom Organizer

As a final tip on maximizing your space, one way to create a cohesive aesthetic and make the room feel larger as a result is to use the same finish in your accessories and fixtures. By giving your eye the same metallic image no matter where it looks – from your shower head to your toilet paper holder – you can create the illusion of a streamlined, more expansive space instead of breaking up the continuity by mixing metals and drawing attention to the separate “stations” in the room. If your fixtures are chrome, stick with chrome for all of your accessories; the same goes if you prefer oil rubbed bronze or satin nickel, etc.

What other smart products and space-saving techniques have you come across over the years for your smaller bathrooms?

Rheney Williams writes on space-saving ideas for the home and office for Home Depot. Rheney’s efficiency tips for organizing small bathrooms seek to add comfort to an otherwise small space. To find a large shower caddy collection available at Home Depot, you can visit Home Depot’s website.