It’s likely a prospective tenant will ask if it’s okay to rent your property for only a week.
What will you say?
From time to time you may be asked by a potential tenant if you would be willing to rent out your property for a week-long stay. Typically these tenants are looking to book for a future date (ie, a planned vacation).
While most corporate housing stays are at least one month long, it’s not uncommon for corporate housing owners to be approached with someone in need of a weekly rental from time-to-time.
So should you allow it?
The answer to this question is “yes” and “no.”
YES: You should consider pre-booking week-long stays if your property is located in a market that is prime for vacation tenants. This may allow for you to achieve a premium rate, even if just for one week. During certain times of the year (tourist season), offering your property as a weekly vacation rental may help you capitalize on greater income potential because weekly rentals charge more than monthly rentals. You should only do this if you feel comfortable that any advance booking you take won’t prevent you from booking potential long-term corporate housing tenants, which are more lucrative in the long run.
NO: Is it legal in your city and allowed in your building? Are you prepared to collect and pay the correct city and state lodging taxes? If your market is not in prime vacation rental territory, then don’t offer it for anything less than a 30-day rental for advanced bookings (a month or more in advance).
The true formula for annual revenue success in the corporate rental business is occupancy, and this is best achieved through longer-term tenants of one month or more. If you secure a week-long rental, you might tie-up your property and thereby prohibit a future tenant from staying in your property for the long-term. Many corporate tenants give little advance notice and need to see immediate availability. Remember, longer rentals means less wear and tear on your property too, so it often makes good business sense to stick with longer-term rental strategy.