Perhaps you already know that renting apartments, furnished rentals and even condos or single-family homes in the “typical” landlord manner is actually the least profitable approach to being a landlord. If not, you should know that “you can net up to eight and ten times more using an advanced corporate housing operating plan.” This is a plan in which you create a turnkey solution to those who require long-term but also temporary housing, and Chicago corporate housing is one of the busier markets.
Does this mean that you can simply invest in an apartment or two and begin offering Chicago corporate housing that earns you huge income? No. There is a bit more to the story. So, let’s look at the five key things to consider before purchasing any form of Chicago corporate housing and offering it as a Chicago furnished rental.
Location, Location, Location
A cardinal rule in real estate is that tagline just above. However, just because you have a few units that might serve as Chicago furnished rental properties; it does not mean they have the perfect location for all possible renters. Consider that the entire metro area does put renters close to the different Fortune 500 companies with offices in the region, but there are also those who come for medical care, as temporary housing paid by an insurance carrier and more.
Pay attention to the neighborhood and consider the audience to which it would appeal…
With that in mind, also consider customization. As mentioned, you might find a few units in a luxury high-rise that would make ideal Chicago corporate housing for the most upscale travelers. Yet, a smaller condo in an outer neighborhood might not be out of the running if you are marketing it as a perfect choice for two or more business travelers in need of a Chicago furnished rental, but without lots of “bells and whistles”.
Think of the Furnishing and Utility Costs
When you provide Chicago corporate housing or furnished rentals, they are turnkey. The costs include the utilities, cleaning services, and more. Before investing, stop to do the simple math. How much is it going to cost to properly decorate, maintain, heat/cool, light and supply this property with all it needs? Is this going to work with the budget you have available?
In addition to location, customization, utilities and furnishings, also consider if this is the right sort of property in terms of transportation options. How long of a ride to the Downtown district? What is the average length of a trip to the nearest airport? How far is this from the buses or public transport? What is the walkability score? If these issues all rank low, it may not be a good property for corporate housing.
Are There Others Nearby?
Here is a major issue to consider, and it can go either way. Are there other corporate housing rentals nearby? Are they good or bad in terms of competition? After all, it could be good to have several properties within a neighborhood or region. If your location is not ideal, but the property is great, competition could prove a problem.
These are five things to really consider before investing in any property you wish to use as a corporate rental in Chicago. Though it is a great city and busy with travelers, not all properties can be easily turned into rentals.