Corporate Housing vs. Vacation Rentals: What to Buy Real Estate ForAdmin
It’s important to know the essential difference between corporate housing and vacation rentals. Vacation rentals say it all in the name: vacation. Clients looking for a vacation rental are looking for a bread and breakfast with a relaxing view and accommodating amenities for a short amount of time.
On the other hand, those seeking corporate housing are likely not on vacation but instead are on the hunt for a longer occupancy in a location close to business affairs. With these distinct contrasts, it can be easy to tell where the best investment for your property will be.
It likely wouldn’t be efficient to buy property for your vacation home in a big bustling city. Many people on vacation want to see beaches, resorts, ski lodges, mountains, and all the other grandiose views you can think of. Clients on vacation don’t want to wake up in the morning to honking horns or go to sleep with wailing sirens.
Similarly, those away on business know how busy they are, and understand that they might not have time to bask in the bounteous beauties of the waterfronts, and accordingly will skip those types of properties for their corporate housing. The key is to purchase real estate in the locations that give your guests convenient access to what they need to access.
Someone looking for corporate housing will be looking in, or right outside the metropolitan area. This is typically where all of the big businesses are, so their stay will provide them with a shorter commute to their appointments and assignments.
Rental Rates For Furnished Rentals
It’s imperative to look at the price of your potential property based on the luxuries it provides. Beachfront homes and other settings with stunning views are notorious for being more expensive than say, a house in midtown. Visitors who are on vacation for a week or two will be expecting and willing to pay the most to secure their ultimate relaxation and entertainment.
Offering weekly stays at set prices will bring you more bang for your buck as more and more guests come to take their leave of absence. On the other hand, a businessman knows and sticks to his budget, and will only be willing to pay for a place in a location that is most advantageous.
Corporate housing already demands higher rental rates than a regular rental home. As a result, income from your corporate housing will go much further if your property were someplace practical, and by chance, less expensive.
Your guests are looking for the easiest way to get around based on what they came there for. It makes so much sense to review the surroundings of your potential venue so that your profit stays above expectation, and your clients stay happy.
Another key thing to consider is who will be managing the property and the turn around in between reservations. Vacation rentals will have a much higher turnover rate increasing overhead cost to prep the furnished rental for the next guests. Corporate rentals will incur similar cost but not as often. The average length of stay is typically 90 days. In some cases the guest will extend there stay month to month. Even though your daily rate for vacation rentals will far exceed corporate housing you need to consider the property management cost involved over the course of the year.