As someone who works with short-term housing, one of the essentials is to bring in great tenants. Our Corporate Housing Real Estate Report for 2020 looks at survey results from independent owners from 2019, and one of the most critical sections looks at a variety of things related to corporate tenants. Curious how your own experiences stack up to those of others? Read on!
One of the biggest things to talk about this year is the fact that 43% of the survey respondents said the tenants they brought in were terrific, compared to mostly good, fine, or disappointing. This is a significant jump from 2018 when only 31% of respondents said their tenants were fantastic. Another 27% marked corporate tenants as good, while only 30% combined said they were fine or disappointing.
It seems that the quality of corporate tenants is continuing to rise since our surveys have begun. In 2011, only 38% of owners said their tenants were outstanding, which dropped even more in 2012. The number went as high as 39% in 2015 but then dropped back down to 37% the year after that. The move to 43% shows the highest rating yet and could increase in years to come.
Another thing to consider is why people are renting corporate housing nowadays. While business assignments make up the most significant amount of tenants, that number has dropped from 71% in 2018 to 63% in 2019. Relocation is the second most common reason and has risen from 39% to 41%. Other common causes include temporary remodels, insurance claims, divorces, and seasonal work.
While there was a drop in rentals for corporate tenants due to healthcare, it’s highly likely that this will increase in 2020’s survey since we are all dealing with the COVID-19 pandemic at the current time. Since many healthcare workers have also been moving around the country to help where they are needed, business assignments could also skyrocket in our next report.
The truth is that a lot of things are in the air for next year’s report since this year has been such a unique one with coronavirus and other situations taking over the world. It’s hard to say what to expect in the future, but looking at the past results from these reports can still give you an idea of how things have been if there aren’t significant changes.
- Leasing Trends to Follow in Corporate Housing
- Outlook & Profitability for Corporate Housing
- How Has Your Experience with Corporate Housing Tenants Been in 2020?
- Annually How Much Do You Spend for the Management of Your Property?
- City Regulations: Has Your City Been Affected by Short Term Rental Regulations and New Laws?