Top 6 Questions about Temporary Living #4

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 4: Temporary Living

I need a place for a short stay for 30 or 60 days, why should I rent from a corporate housing provider instead of an online host, such as an AirBnB place?  They seem cheaper and more hip.

With all the variables that come with relocating, it is often tempting for individuals to use an online marketplace to manage the housing portion of their relocation. As this is how most people are comfortable finding hotel accommodations, using this approach to finding longer-term housing seems like a logical next step.  Individual searches for acceptable lodging can be risky and daunting; however using a corporate housing provider can reduce the stress and liability of trusting strangers.

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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 Corporate Housing 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