Corporate rentals command, on average, one-third more rental income than regular rentals. This alone can inspire landlords to jump into the corporate rental arena. However, a good landlord should know that pricing a property can be challenging and shouldn’t be a one-time occurrence.
Rate setting for corporate housing is not an exact science. There are various factors that go into pricing a property including furniture, utilities, overhead and other associated costs.
A corporate housing landlord should continuously monitor the area for trends. Investigate the pricing of other local corporate rentals, hotels and extended stays and how they adjust pricing depending on seasonal fluctuations and events in the area.
If a property owner only sets their price once, they may be under-priced, or even over-priced, depending on the season.
How often do you evaluate your property’s price?