The San Francisco corporate housing market is one of the brightest and most active in the country. There’s a simple reason for that—money. Due to the large number of tech firms and other corporations in the area, homeowners, landlords, and property management companies are seeing great profit potential in offering temporary lodging. Some of the short term tenants are tourists and visitors, and others are corporate executives who are transitioning to new permanent housing in the area. In any case, the San Francisco corporate housing companies are growing quickly and doing very well in a crowded market.
Because of the shortage of housing and apartments in the area, many people coming to San Francisco are looking towards temporary lodging, and that is only encouraging more homeowners to get involved. Currently there are almost 5,000 properties in San Francisco that are offered on Airbnb. When considering all of the other websites that advertise San Francisco corporate housing, the total number may approach 6,000 or 7,000 properties. In addition, over half of the properties on Airbnb are full house or full apartment rentals. The days when Airbnb users only rented a spare bedroom or living room are coming to a close, as companies and homeowners want to offer more expensive temporary lodging.
Real estate prices have been very high for a long time in San Francisco, and that allows short term rental owners to charge high prices. In the city, whole house, or apartment prices per day average over $225. Of course, the specific prices depend on the wealth and luxury of the neighborhood. North Beach and Russian Hill properties have the most expensive prices, while areas like Sunset District and Parkside are much cheaper. The area continues to be a very profitable location for temporary lodging, and if you are considering entering the San Francisco corporate housing market, you should do some research and see if it’s right for you.
In contrast to all the great enthusiasm and rising profits in the market, many others in the city are criticizing the short term rentals market for its illegality. For the last few years, it has been illegal to offer rental properties for less than 30 days, and yet many homeowners and companies have been flouting these laws on Airbnb and other websites. Opponents have said that San Francisco corporate housing and short term rentals are contributing to real estate shortages, increasing rents across the city, and are changing the compositions of neighborhoods.
Because of the very vocal opposition, and the fact that the temporary lodging industry is virtually unregulated, the San Francisco city government has just announced new rules for short term rentals.
As of last month, San Francisco corporate housing properties must be registered with the city. Under the short term rental classification, homeowners are allowed to rent out their property for a maximum of 90 days every year. Hosting, which occurs when the owner stays in the home and only rents out a room, is unlimited and does not qualify for the 90 day restriction. In order to register, home owners must meet with the San Francisco Planning Department and submit an application. They must show that they have liability insurance of at least $500,000 and must pay a $50 fee for registration.
Response to the new government regulations on San Francisco corporate housing is mixed. The most vocal critics don’t think the rules go far enough, while owners who have been offering temporary housing for more than 90 days a year are concerned that they will be losing extra income. Even with the new rules, San Francisco corporate housing is still a tremendously profitable opportunity for homeowners. A $50 registration fee is very small relative to the income that these units are bringing in.
Featured Company: Avenue West
Avenue West is one of the premier property management companies offering temporary lodging in San Francisco. The company currently has 21 different properties listed online, and these properties run the gamut from studio units to rentals of entire family homes. Some of their rentals include one bedroom apartments, two bedroom apartments, lofts, and penthouses.
Most renters will immediately notice the fantastic locations that are offered by Avenue West’s properties. They have units located in Pacific Heights, North Beach, downtown, and Russian Hill. Anyone who wants their visit to be as stylish and luxurious as possible can find a great option among this company’s rentals.
Their highest priced unit is a 2 bedroom 2 bathroom property in Russian Hill that guarantees stunning bay views and high quality furnishings. More price-conscious visitors may prefer their one bedroom condos in Pacific Heights and Nob Hill which charge about $4000 a month. Regardless of what someone is looking for, they will find a beautiful and well-furnished option from Avenue West.