10 Questions every realtor should be prepared to answer about corporate housing
If you’re a Realtor with an established real estate practice, chances are you have or will have a client who wants to buy an investment property. Helping these clients identify the right investment property is now in your hands. You don’t want to mess it up. What are you going to do?
8 – How do I price a corporate rental compared to a traditional rental?
A corporate rental should be priced competitively for its market, location and seasonal appeal. To price a property, look on CorporateHousingbyOwner.com to see the going rates for other, comparable properties in your area. Perhaps even contact a local extended stay hotel to understand their pricing and amenities as well. Many owners choose to change their rental rates throughout the year depending on the seasonal demand fluctuations in that market.
9 – How do I ensure a corporate rental property my client buys will cash flow well?
First remember that not all investor want cash flow, they may also be looking for a great buy for a future use property, need a good tax deduction, want to roll their 401K out of the stock marketing and into real estate (yes this can be done without paying any taxes) or as a good old fashioned equity increase. As an investor, your clients will need to be able to crunch the numbers to determine their exact cash flow after they determine their monthly expenses for rent, insurance, maintenance/HOAs, Internet access, furnishings, etc. When buying a property specifically for the purpose of high cash flow, consider properties that may not be as appealing to buyers for whatever reason. In other words, a property with a small kitchen or small closets is unappealing to a long-term buyer even if the location is stellar. On the other hand, corporate renters care about bedroom counts and locations, not the size of a closet. You may be able to find a property that has sat idle on the market or one that is priced to sell because of its “faults” – helping you cash flow even better than you once thought.
10 – How do I ensure my client can take advantage of hot income rental properties?
As always, when working with any buyer (investor or not) to purchase an investment property, have them get a pre-approved letter from their lender so they are able to take advantage of hot properties as they pop on the market. Investors often have speed to action on their side! You should also be on the lookout for ideal corporate rentals and alert your clients who are in the market for this unique investment opportunity. The more you know and the faster you move, the more motivated your buyer will be as well. If you can’t find a property that meets your investors needs you can always do a mailing to a desired building or zip code letting the property owners know you have an interested buyer. People don’t always list properties for sale because they are afraid they will not sell but given the opportunity of a qualified buyer they may be happy to take advantage of a quick and painless transaction.