Rental Discounts & Extended Stay Rentals

Published Date: 2015-05-14

Defining a “Longer-Team Lease”
How a property owner defines a “longer-term lease” can vary significantly
This is what we found in the Annual CHBO Corporate Housing Real Estate Report...
Rental Discounts
In previous annual surveys, we have asked respondents if they offered variable rental rates depending on the length of stay of the renter. Traditionally, property owners have a specific discount formula they apply for longer leases of three months, six months, nine months or one year. To simplify this question and better understand how property owners adjust their rates, we changed this question in 2012 to read: “Do you offer a discount for a longer-term lease, and if so, how much?” This was an open-ended question to discover what discounts were offered to renters for longer-term leases. In 2013 and 2014, we were even more specific in how we asked the question. We asked respondents to choose from one of five discount ranges, and the results were significantly different than in 2012. We will continue to offer these specific choices in future surveys because we have found this to be the most accurate way to track trends. Based on our 20 years of experience in corporate housing rentals, we believe these numbers are consistent with current trends.
Do you offer a discount for a longer-term lease? |
|||
Answer Options | 2014Responses | 2013 Responses | 2012 Responses |
Yes | 65% | 67% | 66% |
No | 35% | 33% | 34% |
Percentage (%) reduction of rent offered for longer-term leases? |
|||
Answer Options | 2014Responses | 2013 Responses ** | 2012 Responses* |
< 5% | 37% | 43% | 4% |
5% - 9% | 31% | 30% | 22% |
10% - 14% | 26% | 22% | 48% |
15% - 19% | 5% | 3% | 8% |
20% + | 1% | 2% | 17% |