Yes there are generally rental discounts available for EXTENDED STAY RENTALS if you are willing and able to sign a longer term lease 🙂
Defining a “Longer-Team Lease”
How a property owner defines a “longer-term lease” can vary significantly, depending on the market and the property. One property owner’s definition may be three months, while another’s definition may be 12 months. Nonetheless, while these discounts may be applied differently, the discounted amounts are fairly consistent.
If you’re new to real estate, the takeaway here is to avoid over-discounting. Very few property owners discount by 15% or more. The key is to find the right balance between keeping your property rented and properly valuing your property.
This is what we found in the Annual CHBO Corporate Housing Real Estate Report…
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|
Percentage (%) reduction of rent offered for longer-term leases?
|Answer Options||2014Responses||2013 Responses **||2012 Responses*|
|5% – 9%||31%||30%||22%|
|10% – 14%||26%||22%||48%|
|15% – 19%||5%||3%||8%|
* In 2012, this question was asked as an “other” comment, leading to a large variance in the data. In 2013, this question was reworded to reflect specific numerical choices. We believe the 2013 responses are a better interpretation of the question and should not be specifically compared to 2012.
** In 2013, these responses were incorrectly printed in the report. The numbers listed above are the accurate numbers collected in the 2013 survey.
Call a CHBO Property Specialist to better understand rental rates in you area (877) 333.2426!