We’re continuing our blog series to share key findings from the 2011 “By Owner” Corporate Housing Report, an annual survey sponsored by CHBO to better understand the “by owner” rental marketplace. The latest report was released in January 2012 based on 2011 trends.
We’ve been in the corporate housing business for a long time and can say with certainty that the three most common questions that property owners ask our CHBO Property Specialists are:
- How should I price my property?
- When should I negotiate?
- When should I hold firm on the price?
Because we know setting a fair rental rate is often top of mind with by owner corporate housing landlords, we asked respondents to evaluate their 2011 rates compared to 2010. These findings can help you better determine what rental rate is fair for your property. We learned the following:
- 62.4% say that their rates were identical over the two years, consistent with 64.7% from the year before.
- 21.6% reporting having higher or much higher rates in 2011.
- 16.1% reported lower rates.
We also collected specific rental rates. Compared to our 2010 survey results, 2011 rental rates decreased 10% to 20% for one-month rentals of one bedrooms and two bedrooms. In contrast, rental rates for studios, three bedrooms, and four bedrooms were up in 2011. Five+ bedroom rental rates held even.
The biggest variance from 2010 to 2011 was the increase in rental prices for studio properties. This may be the result of increased demand for corporate housing. It also shows that renters are still looking for the least expensive option, thus increasing demand and driving the price up. We will continue to watch this trend.
READ THIS! Read these tips on how to strategically set your rental rate! Enjoy!
Learn more about these findings by downloading the report yourself at 2011 chbo report.