The advent of peer to peer property rentals is changing how we travel. Today, it is not difficult to find a residential style property to enjoy while you visit or work in some of the world’s most exciting cities, towns or locations. This has led to an entirely new industry to emerge, the “by owner” rentals. It has also turned lots of traditional investors into real estate investors, too.
These are people (and in some instances, groups of people) who might have opted to purchase a property that they use for ongoing income rather than purchasing stocks, bonds or other traditional investment vehicles. It is a great way to invest, and yet corporate housing rentals are not always a sure thing.
Why not? Essentially, it is due to the simple fact that not all areas are well suited to corporate housing rentals, nor are all property types. As all of the world’s real estate investors say, it is all about “location, location, location” and so that is what you want to consider first. Where are you considering your potential rental? Is it in a city in which corporate travelers are likely to have a lot of interest? Are there seasons when corporate rentals won’t occur but which might be offset by leisure travelers? What about the size and condition of the property?
There are many factors that real estate investors must consider, and it is best to use whatever predictive services you might find available. CHBO features a handy “How much is your rental worth” tool that can allow you to simple enter an address and get a reasonable estimate of potential pricing.
Submit the details about the property (such as value, square footage, and so on) and you get a report that indicates what similar corporate housing rentals earn, and what you can expect from that property. This is invaluable advice to potential real estate investors because it allows them to see whether or not the property is in as competitive a place as they had hoped or thought.
Will such an estimate help you avoid corporate housing rentals that are not as profitable as you had hoped? Probably. This is because they specialize in corporate housing rentals rather than general rentals, meaning they are aware of the factors that might most impact real estate investors eager to profit from business oriented rentals.
For example, unlike recreational rentals, corporate properties must:
- Be close to business districts or corporate headquarters
- Have higher walk-ability scores
- Be within easy reach of grocery stores and service providers
- Have reasonable access to travel resources such as airports, train stations, and public transport
- Have features and amenities that provide a home-like setting rather than a long stay hotel or more traditional temporary accommodation
There is a lot that goes into a good real estate investment, and when it is going to emphasize corporate and business guests, there are even further factors to consider. Use whatever free advice you can find before making the plunge and you will enjoy much higher returns.