What is Corporate Housing? How do I setup a Corporate Rental? How to get started renting a property? How do I make money? Corporate Housing Success Stories!
The Corporate Housing Handbook is now available in print from Amazon!
Welcome to the multi-billions dollar world of Corporate Housing or more simply put, furnished monthly residential rentals. Corporate Housing is part of the Extended Stay lodging segment offering an alternative to the transient environment of an Extended Stay hotel. Corporate Housing is also an option for the savvy real estate investor or property manager who is interested in maximizing the returns on their real estate investment.
In the following pages our goal is to introduce you to the Corporate Housing product and industry, give you a step by step guide on how to create the most profitable Corporate Housing Rental, give you some tools and checklists to save time in setting up your rental and introduce you to some CHBO property owners just like you who have found success in their Corporate Housing rental.
To help you navigate these changes with confidence, we’re excited to share the CHBO Corporate Housing Handbook and the “by Owner” Corporate Housing Annual Report Executive Summary – a summary of the results from our annual “By Owner” Corporate Housing Survey. This is the fourth year of our survey and annual report allowing you benefit from the latest data, as well as comparisons and trends from recent years. The CHBO Annual Report in its entirety is also available. It is different than other property management annual reports. It reflects findings from individual property owners, rather than from full-service, corporate housing companies. This report is designed to help individual owners – like you – learn from relevant trends in your marketplace and achieve greater success.
Industry Trends and Changes to Watch Here are some of the key industry trends that may have an impact on you in the year to come…
• Mergers and acquisitions. In today’s new economy, many large corporations are returning to their core products. In line with this trend, there were two noteworthy changes in the corporate housing industry last year. National Corporate Housing acquired Equity Corporate Housing from Equity Residential, and Oakwood bought ExecuStay from Marriott. Both National and Oakwood are dedicated corporate housing companies, whereas Equity and Marriott are focused on other areas of real estate and hospitality.
What does this trend mean for you? My belief is that this consolidation is a huge opportunity for individual property owners. Corporate housing renters who have been extremely loyal to a particular brand, such as Marriott, will now be looking for new rental options – including the diverse lodging options that come from individual owners.
• Vacation rental regulations and taxes. Many cities and states have established legislation regulating the under 30-day vacation rental industry. What’s driving the rules and regulations? It’s a combination of factors, from the need to offer short-term renters greater safety to the desire to lower disruptions in buildings housing many private residences. In addition, the IRS is systematically going after vacation rental property owners for taxes in high profile ways.
What does this trend mean for you? We will continue to see local governments implement new rules on vacation rentals in the months to come. These regulations should be of vital interest to all property owners. As more limitations are placed on rentals of 30 days or less, offering monthly furnished rentals is becoming one of the only legally viable options for individual owners to generate rental income on their properties.
• Corporate housing identity challenges. Corporate housing is a critical “product” in the larger, extended stay lodging segment. As an industry, we need to understand that corporate housing is no longer just for traditional business travelers. There are many individuals and families seeking long-term housing, and we need to educate these renters on how corporate housing is an attractive extended stay option. Consider this: There are more than 600,000 relocations in the U.S. defense industry each year, and there are more than 200,000 traveling nurses! These individuals are already familiar with extended stay lodging. If we embrace what they already know, there will be a much shorter learning curve in educating them about corporate housing.
What does this trend mean for you? While corporate housing is an important piece of the extended stay market, stick to your standards of what makes an ideal monthly renter for your property. Don’t settle for quick money from renters who may be a better fit for a basic, extended stay hotel. If you aren’t getting the qualified renters you think you should be getting (and they’re out there, as you can see in the numbers above), you need to re-evaluate your marketing plan.
How to Learn More If you have questions about Corporate Housing, the Annual Survey findings or trends, please call (877) 333-2426 and speak with a CHBO Property Specialist. The CHBO Team is always looking for new ways to help you get your property rented. We look forward to providing you with useful information for many years to come.