Most of us understand that businesses are run on “business models”. There is not a lot of room for flexibility within many business models, and once a company or enterprise gets started along one path, switching its approach can be detrimental. That, however, does not apply to corporate rental real estate, and it is one of the finest business models available. When looking for a solid investment with a nearly guaranteed return, corporate rental real estate is the model to consider.
Experts talk about this approach to the “land-lording business” as capable of generating eight to ten times the earnings of standard rental models. In other words, converting your traditional long-term rental units into corporate rental real estate can boost earnings by that enormous amount.
Not only does this higher quality short term housing already have a proven record, and is now seen as a valid alternative over extended stay hotels and other similar properties, but it can also be customized to the owner’s specific region.
Customization Makes It More Profitable
As a prime illustration of this concept in short term housing, a property may be a single-family dwelling in an upscale neighborhood around 25 minutes from a bustling downtown or business district. This makes it a good choice for an executive seeking short term housing that offers a high level of comfort, privacy and amenities all within easy reach of corporate headquarters or a client’s offices.
On the other hand, your corporate rental real estate might be a luxurious studio in a center city high-rise. This too holds the potential for enormous earnings as executive or corporate short term housing, and both are easily converted to turnkey properties available for twenty days or more and with full services at all times.
Remember That It is Cost Effective
Of course, another reason that you will want to think of investing in corporate rental properties is that they are more cost effective for those who require them. As one expert wrote, corporate housing is “40% to 50% less expensive than the benchmark hotel” over the course of a 30-day visit. Along with the lower pricing, your investment property gives the traveling professional a far more home-like, comfortable and appealing setting.
Because your investment will appeal to clients willing to pay for any premium services or amenities, it means you can do much more than monetize ownership. You can quickly earn on any corporate housing investments if you choose wisely and market accordingly.