Many of our fans ask us, “What is the difference between a furnished rental and a corporate housing rental?” We respond by saying there are many subtle differences that a property owner must know. Let me explain…
A furnished rental property can be any rental property with furniture in it. I can be fully furnished, partially furnished, furnished for vacationers or furnished for long-term renters. There is no “standardized” or “industry acceptable” rules for a “furnished rental.” It also can be a property that is rented for a night, week, month or year.
A corporate housing property is very different, however. A corporate housing property is thoughtfully “furnished” with a corporate user in mind. This means the quality of the furnishings and level of service MUST meet corporate housing industry standards.
Renters of a corporate rental are typically business executives. They are looking for an all-inclusive experience as they don’t want to show up to find out there’s no wi-fi. They typically have lodging needs of one month or longer, and the typical stay is three months or more. These tenants also have higher service demands that require specific care and attention from their landlords or property managers.
When property owners take the extra care to set up their rental property as a corporate housing rental, this means they are creating a higher-end product with a higher-end price point than a traditional “furnished rental” property. In other words, corporate housing landlords are taking a step beyond simply renting out a property and rather entering into the hospitality/lodging industry.