Anyone who has to consider corporate housing eventually runs into the question of fully furnished apartments versus short term apartment rentals. They sound the same but are not often all that similar, and if you’re in the market for a lucrative real estate investment, you have to determine which is the right one for your goals.
To figure out whether you should be sinking available capital into one or the other, look at the following questions:
If your goal is to provide corporate housing, but you are torn between fully furnished apartments and short term apartment rentals, you have to start with the location.
While both fully furnished apartments and short term apartments are likely to attract attention, look at the market in your area now, see its level of competition and determine if you might gain an advantage offering one type over the other.
While a fully furnished apartment seems like the ideal investment, saving you lots of up front expenses, will it? Look at that furniture and the appliances. Are they a draw or will they scare away renters due to poor conditions or plain unattractiveness.
Lastly, if you have no significant time to dedicate to the venture, the short term rentals actually make more sense. You have less frequent turnover as short-term renters typically stay longer than corporate clients on visits to fully furnished spaces.
Of course, any area in need of corporate rentals poses a good market for investment in real estate, and both models may work well for you!
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- City Regulations: Has Your City Been Affected by Short Term Rental Regulations and New Laws?
- Make the Most of Your Rentals Using the CHBO Handbook.