About the Independent Corporate Housing Real Estate Segment: Rental Rates
Admin
Published Date: 2019-04-10
Variance: Changes in Rental Rates
We asked respondents to evaluate their current rental rates compared to the previous year for the exact same rental property.
Annual Occupancy:
We added a question in 2016 regarding annual occupancy. Traditional corporate housing apartments across the United States reported an annual occupancy of ?88%?last year. Please keep in mind these companies typically pay for their vacancy (rent, housewares, utilities, etc.)
Discounts: Rental Rates
Traditionally, many property owners use a specific discount formula they apply to leases of three , six , nine or 12 months.
Since 2014, we’ve been even more specific in our wording. We’ve asked respondents to choose from one of five discount ranges. In making this change, the results were significantly different than in 2013.
The trend to note here is a significant shift towards not offering a discount for a longer term lease. Even though there are obvious benefits such as no “down time” and less wear and tear on the unit, owners seem to be more interested in the “month to month” rentals which is very interesting. We will continue to monitor this trend in the future.
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