6 MUST Knows before investing in a Corporate Housing Rental Property!
If you’ve decided investing in corporate housing is right for you, here are some important considerations to make before you purchase a property specifically for use as a corporate housing rental.
Evaluate Price per Square Foot
Evaluate price per bed, not price per square foot. While some people think more space or a bonus room are great perks for a home they are going to live in, keep in mind that it’s just added liability for a home you plan to rent. Purchase the smallest square footage with the most number of bedrooms. Just like a hotel, when you rent out a corporate rental, it’s priced per bed, not by square footage.
Avoid First Floor Units
If you’re purchasing a condo as a rental property, avoid first floor units. People who don’t know the city may not feel as safe in a first floor unit (which can negatively affect your rental success), and often, people will use a first floor rental to advertise a business that they may conduct in the unit.
Location. Location. Location. Location can singly-handedly ensure your property is rented continuously. Look for homes in urban areas, near train stations and airports, and close to universities and hospitals. Typically, these locations rent well and have the best resale value.
Functionally Obsolete Homes Can Make Good Rentals
Don’t rule out functionally obsolete properties. Sometimes a property that is a poor long-term home is a perfect short-term, furnished rental home. For example, homes with tiny closets or kitchens (which some consider functionally obsolete) make wonderful furnished rental properties because they are usually less expensive to buy and provide good cash flow.
View & Amenities Matter
Views and amenities matter. When people are visiting a new city for business or pleasure, they want to enjoy all the city has to offer. Corporate tenants like city views, covered parking and free gym access. Keep these things in mind when creating a desirable corporate rental property.