A recent article in the New York Times explored an interesting phenomenon in New York City. More and more people who live and work in Manhattan and Brooklyn are renting apartments in the city during the week and purchasing houses outside of the city where they spend their weekends. This trend is not only interesting to homebuyers in New York – it should also be very intriguing if you’re considering your first real estate purchase (whether you’re in New York or anywhere else in the country). In fact, this should have you considering buying a temporary furnished apartment as a rental for your first real estate purchase.Basically, the people who are skipping buying an apartment in the city (not just New York, but almost any other city in the US, too) and going straight to buying a house in the country still need good places to live on a short-term basis during the week or whenever they come into town for work. They’re also likely not going to want to spend a lot of extra money on furnishings and décor for their in-town apartments, either. Instead, they’re going to want to spend that money on the homes they’ve just bought. To someone in this situation, a temporary furnished apartment is going to look very attractive.
You’re Not Too Young to Invest in Real Estate
Now, you may be wondering if you’re really ready to invest in real estate. Traditional wisdom seems to say that people invest in this corner of the market once they’re more established. However, real estate is one of the most stable assets you can invest in, and it starts giving you returns on your investment almost immediately.
Whether you’re just starting the search for your first real estate purchase or you’ve outgrown your apartment or condo and you’re looking for an upgrade, getting into the executive rentals field can make you money in less time than you might have ever thought possible. When you buy the property, you will basically only have to pay the down payment and perhaps the first couple of months’ worth of mortgage payments. After that, your rental rates will cover all of your expenses on the apartment and bring in a good profit every month.
Why Invest in Executive Rentals?
So why go with a temporary furnished apartment instead of a traditional lease? Because you’ll be offering a fully furnished apartment, your tenants will be more than willing to pay more in rent each month. They don’t have to buy furniture or worry about decorating, and all of their appliances are taken care of, so they’ll see it as a great deal to avoid the hassles of these large purchases. Plus, executive rentals are move-in-ready, so they won’t have to worry about transitioning from their house in the country to their temporary furnished apartment in the city. They can just bring whatever clothes and other essentials they need, make a trip to the store for some food, and they’ll be ready for the workweek.
And higher rental rates aren’t the only perk of executive rentals, either. With a temporary furnished apartment, you’ll be renting to a higher level of tenants. People looking for corporate and executive rentals are professionals looking for comfortable places to stay
within an easy commute of where they’ll be working. Thus, they’re less likely to damage the property or cause harm to appliances or furniture. They’re willing to pay higher rent, which means they know the value of your property and its convenience for them, so they’re more likely to treat it with respect and care.
Likewise, when you find tenants for your executive rentals through
CorporateHousingByOwner, you can have them purchase accidental rental damage insurance (ARDI), which will ensure that you will be compensated if there’s an accident that causes damage to your apartment or anything in it. Thus, you won’t have to worry about replacing an expensive couch if an accident occurs while your tenant is living in your apartment.
Renting Your First Real Estate Purchase to Pay for Your Next Home
Finally, if your family has outgrown your apartment in the city, then you should consider converting it to a temporary furnished apartment instead of selling it. By doing this, as we’ve discussed, you can make more money over a longer period of time than you could ever hope to get by selling it right now. Thus, you should have no trouble using the profits from your temporary furnished apartment to pay off your next home – or to buy another investment property and add to your passive income even more.
By renting a temporary furnished apartment to corporate tenants, you can jump-start your investment portfolio and see major benefits really fast.