What Corporate Rental Landlords Need to Know About the Fair Housing Act

Corporate Landlord

If you are about to invest in corporate rentals and executive rentals, or you already own them and wish to be in full agreement with federal laws, you need to be aware of the Fair Housing Act. It is legislation dating back to 1968 and it “prohibits housing discrimination based on race, color, religion, national origin, sex, disability and familial status”. It applies to corporate rentals as much as it does to standard housing options, and that means you have to pay attention to it when listing and renting your executive rentals, too.

How would you have (inadvertently) violated the FHA in your corporate rentals or executive rentals? As one real estate report explains, “Fair Housing Act violations can occur in all phases of buying and renting, including in advertising, while you search, throughout the application process, in financing or credit checks, and during eviction proceedings.”

Corporate Landlord

As someone who owns corporate rentals, you can violate it by suggesting a potential client look at a different property in a different location based on your feelings about their race, sex (and/or sexual orientation), disabilities, and so on. You might refuse to rent to someone or ask for a higher deposit based on some prejudices or inaccurate beliefs you hold. You might charge someone a higher rate based on their gender or their race.

There are many ways you might be in violation of it, and so it pays to know one key rule to help you avoid crossing the line and breaking the law when renting out your executive rentals: You must apply the same standards and extend the same terms to everyone who applies to rent a property.

Book Furnished Rental from CHBO

In other words, if someone is disabled and wishes to rent the property, you need to make reasonable accommodations for that tenant. If someone is a different ethnicity than another applicant, you cannot give the second applicant preference over the other. Everyone must be given the same treatment.

Keep in mind that you might violate the FHA in advertising, screening, and many other ways. It is always in your best interest to be fully versed in the ways in which the FHA overlaps with your rental business. A good way to protect yourself is to be an exquisite record keeper, creating a fail-proof system that tracks everything from first contacts and applications to meetings and all the rest. This is one of the best ways to be sure you do not fail to meet the FHA standards and to prove nothing prejudicial or unfair was done during your interactions with renters or potential corporate or executive renters.

CHBO Annual Report Review: Corporate Housing Landlords – How Long and Why

The results are in, so let’s dig deeper. Each week CHBO will analyze data from the annual corporate housing report and open a discussion. Please provide feedback with your experiences in 2017. This week we discuss how long our providers have been Corporate Housing landlords and why.

Years as a Corporate Housing Landlord

Years as a Corporate Housing Landlord

Property management, of corporate housing, by independent owners remains an emerging field. It’s a field that more owners are committing to, in order to achieve rental success. Consider that:

  • 60% of respondents​ say they’ve been furnished landlords for four years or less. Continuing the trend of new investors entering the real estate investment market.
  • Only 40% of respondents ​say they’ve been furnished landlords for five years or more.

In last year’s annual report, we predicted that if interest rates remained stable in 2017, we should see a “possible increase in new investors who are willing to enter the real estate investment market.” Not surprising that prediction was correct. We saw new investors entering the corporate housing real estate market at a year over year increase of 5%,​ our highest increase ever.

Years as a Corporate Housing Landlord

 

Reason for Being a Corporate Housing Landlord

Reason for Being a Corporate Housing Landlord

Once again, the majority of respondents tell us they are landlords for investment purposes​. This year at an all-time high of 60%​. The “other reason we’re a landlord” category continues to be as “partial landlords.” We define “partial landlords” as property owners who have a  fully functional, stand-alone guest house or apartment suite on the same site as their primary residence. Traditionally, this may have been referred to as an in-law apartment. (Please note, this is different than the “shared space” where property owners rent out a room within their residence, sharing the same space as their renter.)Reason for Being a Corporate Housing LandlordTo learn more about this topic and other results, view the CHBO annual report.

To view Historical Reports, visit here.

 

Corporate Housing By Owner Has Completed Its 9th Annual Corporate Housing Real Estate Survey

Press Release CHBO

The Corporate Housing Real Estate survey results indicate the trends, standards and the need for a monthly furnished lodging solution. The annual Corporate Housing report is now available for view or download.

Denver, CO, June 27, 2018 –(PR(dot)com)– Corporate Housing By Owner (CHBO), has recently completed its 9th annual Corporate Housing Real Estate survey, thanks to the largest number of contributors in its history. Participants included property owners with a single property, those with multiple properties and management companies. The survey was open to anyone who owned or managed a furnished, monthly residential rental in 2017 – not just to CHBO users. This diversity of input provides an excellent overview of this market which is significantly different from the short term vacation segment. Indicative of this, 60 percent of respondents indicated average stays were 3 months or longer. To get a better sense of where this market is headed and what opportunities it affords, CHBO urges a careful look at the survey results.

According to The Corporate Housing Providers Association (CHPA), “In 2017, the US corporate housing industry reported its fifth consecutive year of room revenue growth, hitting a new peak at $3.62 billion. In 2017, the 12.9% gain in revenues over 2016 was the fastest increase since 2011. This is comparable to the corresponding growth in extended-stay hotel revenues and far greater than the overall US hotel average 5% in 2017. For the fifth successive year, the supply of US corporate housing units increased. Average daily rate (ADR) rose 7.1% in 2017, more than tripling the growth in overall hotel ADR, according to STR, the premier company providing statistics on the lodging industry.”

Rental Success Starts with Understanding Data and Trends

A glimpse of the 2017 survey results indicates that new owners continue to enter the market, over 90 percent manage their own properties, over 44% are looking to buy new properties, larger homes have shown the biggest increases in rents, 60 percent of owners are renting without previewing the property. Amplification of these trends and many others, revealed in the survey, can provide valuable knowledge on how to navigate the corporate housing market in the future. The full report can be viewed and downloaded here

CHBO thanks everyone who took the time to complete the survey questions. The survey results give you an insight on the private owner segment of the corporate housing industry.

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