How should I price my corporate housing rental property?

“How should I price my corporate housing rental property?”
“When should I negotiate, and when should I hold firm on my rates?”

What are the most asked questions at CHBO? You got it, “What are the current Corporate Housing Rental Rates.” Because these are the top questions we’re asked at CHBO, we’ve divided this topic into three sections in our CHBO Annual Report: Variance, Actual and Discounts.

Variance: Changes in Rental Rates


We asked respondents to evaluate their current rental rates compared to the previous year for the exact same rental property.  Rental rates

The great news is that 39% of respondents – an all-time high – report having higher or much higher rates in 2015. This number has been rising since 2013, and it’s significantly above the 22% reported in 2011.

Another positive sign… We saw a 3% decrease in the number of respondents who say their rental rates were identical to the previous year.

In 2015, only 4% say that had “lower” or “much lower” rates than the previous year. (This is consistent with 2014.) Collectively, this is a big contrast to the 2011 Corporate Housing Report in which 16% said they had “lower” or “much lower” rates than the previous year.

Actual: Rental Rates


Additional rental rate data was collected for month-to-month rentals based on the number Continue reading

Salt Lake City Corporate Housing – City Spotlight

Salt Lake City, Utah is a growing metropolis with a lot going for it, and CHBO is proud to offer a number of luxurious and spacious Salt Lake City Corporate Housing options. From its picturesque setting to its growing commercial and industrial sectors, this is a city to watch in 2016.

Salt lake city corporate housing

Salt Lake City’s Need to Know Info

With a population of just over 190,000, Salt Lake City may not be competing with the likes of New York City or Chicago, but that’s not necessarily a bad thing, either. With a slightly smaller population, Salt Lake City has a more welcoming feel than other metropolises, but it’s also growing hub of industries.

While most people think of Silicon Valley as the United States’ leading area for the tech industry, more and more successful tech businesses are popping up and thriving in Salt Lake City. With an unemployment level that’s far below average for the country today, Salt Lake City is bringing in more and more talented employees across industries.

January is the coldest month of the year with average daily temperatures at just over 29 degrees Fahrenheit, and summers are mild with average temperatures reaching about 77 degrees in July before they drop back down in the autumn for temperatures between 75 and 52 from August to October.

Along with this attractive range of temperatures, Salt Lake City is also surrounded by gorgeous mountain vistas, and of course there’s the Great Salt Lake, where residents love to go float in the salty water and let their cares wash away.

Things to See and Do in Salt Lake City

In addition to the mountains and the Great Salt Lake, there’s a lot to see and do in Salt Lake City. Whether you’re staying in Salt Lake City furnished housing for an extended vacation, a work trip, or in preparation to relocate to this wonderful city, you’ll want to check out all the sights and attractions that this city has to offer.

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If you like college football, you’ll want to pick a side and get in the game with the biggest rivalry in Utah between Brigham Young University and the University of Utah. College football season is never dull with these two talented teams squaring off every year.

 

Want a relaxing daytrip to get away from it all without even leaving the city? The Gilgal Sculpture Garden is one of the most unique and relaxing parks in this city. That’s not all, of course. Salt Lake City is home to a lot of great cultural events, fine dining, and lots of educational and entertaining venues and attractions for the whole family.

Luxurious Salt Lake City Corporate Housing

When choosing Salt Lake City furnished housing, consider staying in a gorgeous, two-bedroom, two-bath corporate cottage that’s convenient to University of Utah Hospital, Salt Lake Community College, and Salt Lake City’s thriving downtown area. With hardwood floors, vaulted ceilings, flat screen TVs, and all the amenities you could ask for, it provides the accommodations you need to feel at home whether you’re staying for a few weeks, a few months, or relocating permanently.

What is Corporate Housing Property Management?

What is Corporate Housing Property Management?  In the CHBO Annual Report we asked property owners to tell us how they take care of their properties.


We asked respondents to tell us how they manage their rental properties. At an all-time high, 92% of respondents say they do all their property management them sManager supportelves. This number is up from the all-time low of 72% in 2013.

Previously, we had hypothesized that the decreasing trend in “do it myself” management was due to accidental landlords deciding they needed more professional support.

In our 2013 annual report, we predicted that we expected property owners in 2014 to be more willing to invest in professional support as their profits increased. We were correct as “property manager” responses were up 6% that year.

In 2015, however, the number of property owners who used a property manager reversed back to 11% — the same as in 2013. This is a new trend we’ll continue to watch. It may be the result of more professional investors entering the market who manage their own properties as full-time income opportunities.

In 2015, the biggest increase in additional support was from “friends and family” — jumping up to 8% (after only 1% in 2014). This number has bounced up and down over the last few years.

No additional trends emerged in the “other” category.

Property Management Software


Software supportProperty owners frequently ask the CHBO team about tools that can help with property management.

With that in mind, we added a few more questions to the Continue reading

San Jose Corporate Housing – CHBO City Spotlight

Forbes Magazine has called San Jose the happiest place to work in the United States, and there’s no wonder why. The self-proclaimed capital of Silicon Valley, San Jose is home to Adobe Systems, TiVo Inc., EBay, Fry’s Electronics, Google, Intel, and many more stellar companies in the technology sector and other industries, as well.

San Jose corporate housingWith so many successful corporations in and around San Jose, more and more people are traveling here for short-term and extended stays, and a rising number of those people are choosing corporate rentals instead of extended stay hotels or traditional rentals. If you want to feel truly at home as you get to know the area, find your favorite neighborhoods, and experience all there is to see and do in San Jose, corporate housing with CHBO is the way to go.

San Jose, CA Need to Know Info

Unsurprisingly, with its large number of large corporations and startups in the tech industry, San Jose has the largest number of patents of any city in the US. As a result, just a few months ago, in October of 2015, the city opened a new Patent Trademark office to better serve its creative and technologically savvy residents.

Not only does San Jose already have numerous businesses in the technology sector, but many of those corporations are looking to expand their presence here, as well. Apple has purchased a 40-acre site to accommodate their continuing expansion. Apple expects to locate 15,000 employees at this location, alone. That means that more lucrative and exciting tech jobs are coming to San Jose every day, and more talented young employees and contractors are on their way here all the time, either for permanent positions or for short-term contracts.

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Great Corporate Rentals – Property Owners Guide to Amazing Kitchens

 One of the best benefits of choosing a great corporate rental vs a hotel is truly the comforts of home. I know it is cliche to say corporate housing is your home away from home but really the comment is true.  Did I mention it is ok to choose a great corporate rental that is also nicer and more fun than your home:)  Today, Kerrie Kelly, a professional interior designer gives property owners ideas and tips on how to design an amazing kitchen with counter tops that would WOW just about anyone.

Great Corporate Rentals: A User Guide to the Most Popular Countertops  By Kerrie Kelly, ASID

Executive RentalsCountertops are the workhorses of the kitchen, and they need to stand up to a lot of wear and tear. Since the color and material of your countertop often ends up influencing the design choices for other areas of your kitchen, it’s important to choose something that looks good, will hold up under day-to-day kitchen activities and has a price tag that fits your budget.

What Do You Want Out of Your Countertops?

Beyond each countertop’s Granite Kitchensesthetic appeal, you will also want to weigh its physical characteristics.

Kitchen surfaces should be water-resistant, durable and easy to maintain. Before you decide, consider how you will use the countertops:

Do you want surfaces for chopping or placing hot pans during preparation for a holiday dinner?

Do you mind sealing surfaces?

How often do you want to clean your countertops?

Do you cook often and need a surface that won’t show stains, fingerprints and water spots?

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What Does Houston’s Temporary Housing Market Tell Us About Corporate Apartment Rentals?

When you think of fully furnished apartments with luxury amenities, do you automatically think of cities like New York and Los Angeles? At Corporate Housing By Owner, we have listings all over the country, and they are getting more and more popular by the day. To illustrate the major demand for fully furnished apartments and corporate apartment rentals across the US, let’s take a look at Houston.

According to Texas Public Radio, “Houston [has] added more than 100,000 jobs in the last 12 months and hosted more than four million business travelers. Forty-one percent of those jobs were in the energy and healthcare fields.” If you’re even a little bit familiar with the economic climate and job market in Houston, this shouldn’t surprise you at all, especially as Exxon Mobile is the largest company by revenue in Texas.

Houston’s Temporary HousingBut what does that tell us about the need for corporate apartment rental units? Well, all of those people relocating to Houston and traveling for work need places to live while they’re in the area. As a result, local developers and entrepreneurs have taken note, and real estate developments like David Redfern’s Waterwalk are proving very successful.

Waterwalk is an entire development centered on corporate tenants, and Redfern describes it as “one part apartment, one part corporate housing, and one part upscale extended stay hotel.” Basically, Redfern is developing an apartment complex geared toward corporate renters who will either be moving to Houston or working there for a short time and need a place to stay temporarily.

A Huge Opportunity for Property Owners in Houston

Now, you may be thinking, “Well, that’s great, but why does it matter if Waterwalk is going to take care of all of the corporate tenants in Houston?” First of all, David Redfern’s development will absolutely not handle all of the people coming to Houston for those 100,000+ new jobs. Second, it won’t satisfy all of the corporations in the city, each of which will have their own needs and wants for corporate apartment rental units for their employees, partners, and contractors.

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How to Get Reviews on Your Short Term Housing Properties?

As a short-term housing property owner, you want to minimize the time your property stays vacant. If you have beautiful short-term apartments in an attractive neighborhood with a lot of amenities, you might be wondering why you should care about getting tenant reviews on your properties. After all, don’t your pictures and description speak for themselves?

Tenant Reviews Can Make All the Difference

You may have a number of beautiful images of your property, as well as a detailed description with a full list of all of the amenities available to your short-term housing tenants. However, for people looking for luxurious short-term apartments, there’s nothing quite like hearing it from someone who’s stayed there.

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Tenant reviews allow others who are thinking of renting your property to get an idea of someone else’s opinion of renting it. Reading a good review lets the next tenant know that the rental process and transaction went smoothly and that the stay was a positive experience. A glowing review is worth a lot more than even the best description or the most accurate images (though these will definitely help, as well).

Ask for Reviews to Get More High Quality Tenants

So how can you get people to write helpful reviews for your properties? You no doubt already know that you should be polite and ask them to give you a good review if they enjoyed their stay. This is a good start, but you can get a lot more out of your reviews if you help give your tenants an idea of what to write about, too.

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Give Your Tenants an Idea of What to Write

First of all, you can ask your tenants to leave a review telling other prospective tenants what they thought of the area. While new tenants will have a lot of information about your short-term housing property based on your photos and description, they may not have as much information about the convenience of the area where your property is located. What did they think of the area’s restaurants, entertainment, and other attractions? This will inform them a great deal about where they want to live for the next few weeks or months.

You can also ask them to talk about what they thought of the property’s amenities and building access points. Other prompts might include asking them why they liked staying in your property so much and how they felt about the safety of the neighborhood and your building.

The more you prompt your tenants with ideas of what to write about when they give a review, the more useful their reviews will be. A review that says nothing more than, “I liked staying here. It was close to work and comfortable,” might be nice, but it isn’t very reviews by corporate tenantsinformative. The more detailed your previous tenants’ reviews are, the more they’ll help you keep new tenants pouring into the property. With enough great reviews like this, you won’t ever have to worry about having empty short-term apartments again.

Trends: Investing in More Corporate Housing Real Estate

The answer is “Yes.”

Question: “As a real estate broker does it make sense to learn more about corporate housing real estate investing.”Sold png logo

Why: “Because the survey says people want to buy more!”

If you believe in human evolution you want to believe we continue to do what works and we stop doing those things that do not work.  So it is important to know what current corporate housing real estate landlords plan to do in the future because this will give us the best picture of their current satisfaction.

Spoiler Alert: Yes, Corporate Housing Real Estate Landlords plan on investing in even more real estate in future! – Kimberly


Corporate Housing Investing Real Estate Trends: Do you have plans to buy more real estate?

So, we’ve all heard that the Real Estate Market is back. Based on the responses to our previous question, we also know that corporate housing is profitable.Investment in real estate

Consistent with previous years, more respondents say, “Yes, I plan on buying more real estate” (45%), than “No, I’m done with real estate” (18%).

With that said, we’ve noticed a new trend to watch. In previous years, there was a steady decline in those who said they were done with real estate investing. However, in 2015, the number of respondents who say they’re done with real estate investing rose 5%. This is the first increase we’ve seen in this number since we added this question to the survey in 2010.

We’re seeing some long-term investors exit the market after weathering the ups and downs of the last 10 years. They’re selling their properties and aren’t re-investing right away.

* In the past, some economists said they believed there was a correlation between the slow pace of the real estate recovery and people feeling stifled by banks that didn’t want to lend money at low interest rates. With this in mind, we added a question in 2011 to see if people felt hindered by the banks. Today, this is no longer a factor.

Learn more Corporate Housing Real Estate Trends

Why Should I Set My Minimum Stay at 30 Days When I Really Only Want Long-Term Renters?

If you have one or more furnished rentals, and you’re not getting the interest in your properties that you want, it could be that your minimum stay is just too high. While it pays to have lower turnover rate with renters, the world of renting furnished apartments to corporate tenants is very different from the world of long-term rental housing.

If you’re in this market, then you already know that furnished rentals get a higher rental rate than unfurnished, long-term rentals. You know that you can make a lot more money with very little work when you open your property up to luxury corporate renters instead of renting it to a single tenant for a year without any furnishings or luxury amenities. At the rates you can charge for luxury furnished apartments, you’ll make more in three months than you would in a year renting an unfurnished property. That means that you need to be open to shorter-term tenants.furnished apartmentsHowever, you don’t want to make your minimum stay too low, either. Let’s discuss why setting your minimum stay at 30 days is the perfect decision.

Attract More Tenants

First of all, most people traveling for business or relocating to a new city don’t want to be locked into a long-term lease. They want the ability to pay on a month-to-month basis. This way, they can stay longer if their contract gets extended or if they have trouble closing on a house in the area and need a place to stay while they search. At the same time, if they need to go home early or if they find a permanent home before their rental agreement is up, they will have more freedom to move out without losing a lot of money in breaking a lease.

On average, most travelers stay between three and six months, which means that you’re still looking at a fairly low turnover rate when you go with a 30-day minimum stay. In fact, you may only have two to four tenants per year while still consistently collecting rent. This means that you’ll only have to spend the money to clean and prepare your furnished rentals a few times a year, and you’ll get more tenants interested in renting them, as well.

Avoid Short-Term Leasing Litigation

Furthermore, when you set your minimum stay at 30 days, you’ll avoid a lot of legal issues, fines, and fees. Right now, in several cities around the United States, property owners are jumping through a lot of legal hoops to continue to rent their properties as very short-term rentals. Fortunately, though, these do not affect property owners renting their furnished apartments for a month or more at a time. So don’t go below 30 days if you want to avoid unnecessary expenses and potential legal problems.

housing calenderPlus, if you set your minimum at 30 days, you can attract more long-term renters by offering pricing incentives for longer stays in your furnished rentals. People love getting a deal, so if you offer a discount for a longer stay, you’ll likely get more long-term renters, and you won’t have to worry about short-term housing legal issues, either. Now you see why you should set a 30-day minimum stay for your furnished apartments instead of one that’s higher or lower.

Trends: Corporate Housing Real Estate Profitability

As you may have read in other blog posts there are lots of reasons a landlord may have for turning their real estate into a corporate housing rental. The reality of life is things do change and corporate housing can be a great solution for your real estate whether or not that is the reason you purchased the real estate in the first place.  

Ok, so now you know you can turn lots of real estate into great corporate housing rentals, however the next question is, “As a corporate housing real estate landlord can I make a profit?” Since you want to know, for the last 5 years we have been asking that question on our CHBO Corporate Housing Real Estate Survey. – Kimberly


Corporate Housing Real Estate Profitability

Furnished rentalIf you’re new to corporate housing rentals, you may want to know what other corporate housing property owners think about profitability.

Great news, for the fourth year in a row, more than 9 out of 10 respondents report their properties are profitable or breakeven. (This response is down slightly from 2014, which was the most profitable year since we began asking about profitability in 2011).

Continuing an encouraging trend, more respondents say their properties are “very profitable,” up 2% over last year.

Over the last few years, there has been a huge 18% drop in the number of property owners who say they just “break even” with their rentals. However, in 2015, this number went up by 7%. As we seen new investment owners enter the market they are purchasing real estate at higher rates which increases their expenses compared to previous owners who had owned their rentals for a while and had a lower cost basis on their rentals, thus higher profitability.

Learn more Corporate Housing Real Estate Trends.