Did I mention this is my favorite season of the year? The season of collecting data for the annual “by Owner” Corporate Housing report. Now in its 5th year I really look forward to taking the new data and seeing what trends are changing and what trends are staying the same.
Today I got an email from a property owner who wanted to know why Airbnb was not listed as a marketing source, great question! Next year the survey will include Airbnb and it will be interesting to watch Airbnb to see if it can go from a pop-culture “sofa swap” site to a more main stream quality renter site. I think that is what their investors are also asking.
Feedback: Let me know more about what you think we should add to the Annual Report. Our goal is to make this the best tool possible to make you a more successful landlord.
Winner! $100 Amazon gift card – Survey responder #74 you are the winner of the Amazon gift card.
Don’t worry you can Still WIN the iPad Air the annual survey will be open till Dec 15th at which time a survey respondent will be chosen at random to will the iPad Air just in time for the holiday season. Get started now: https://www.surveymonkey.com/s/2013SurveyCHBO
This is what we were talking about last year: Read the 2012 Report
Industry Trends and Changes to Watch in 2013: 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.