CHBO Annual Report Review: Property Locations and Number of Properties

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 CHBO Property Locations.

CHBO Property Locations

We received hundreds of survey responses from property owners and real estate managers across the UnitedCHBO rental locations
States including 43 states and the District of Columbia.
Similar to last year, the top U.S. states for responses​ were:

1. California: 27% (up 6% from 2016)
2. Colorado: 15% (up 2% from 2016)
3. Texas: 10% (up 2% from 2016)
4. Washington: 5% (down 3% from 2016)
5. Georgia: 4% (down 2% from 2016)
6. Oregon and Illinois 4%

Number of Properties

46% of respondents say they have one rental property, tying the highest response we have had two years in a row. 37% report they have two to five properties (up from 35% in 2016). Perhaps the most interesting trend​ to note is that over the last six years, the property ownership numbers have generally stayed the same. (The one exception was in 2011 when we saw a 6% increase in property owners with one rental unit.We believe that may have been due to
the number of “accidental landlords” who entered the market at that
time, due to the economy.)

Given that more than eight in 10 survey respondents​ say they only have one to five rental units, the responses in this annual report truly reflect the independent corporate housing real estate segment.

Total properties Owned

1. Where are you’re properties located?

2. Are the properties located in the top cities reported by the CHBO community?

3. How many total properties do you manage?

Comment below or share this post with your response.

To learn more about this topic and other results, view the CHBO annual report.

To view Historical Reports, visit here.

A Look at the Annual Corporate Housing Report

Real estate agent showing modern house to couple

Are you on the fence about joining the CHBO Program and ensuring your corporate and extended stay rental properties get the kind of premium marketing they need? It makes sense to worry about every business expense, but if you look at the most recent corporate housing report data, you’ll see precisely how and why the Certified Program will pay off exponentially.

Corporate Housing Agent

If you compare data reported in our last corporate housing report and most recent figures, you’ll understand that any corporate housing investments are savvy. Yet, you also see that many are finding optimized marketing their ultimate key to success. Just consider:

  • Marketing Trends. Previous data indicated that “37% of respondents say they spent $500 or more on their annual marketing efforts”, and in Corporate Housing Rental Report 2016 that figure has actually decreased, with the caveat that most owners indicated “they were less satisfied with their results than in previous years”. In other words, spending less on marketing has left many unhappy with their returns (or lack thereof).
  • Marketing Resources. Roughly 80% say they had professional photos taken of their corporate properties and 34% say they have a dedicated website for their properties – the latter figure is down from previous years. This is because many have started to rely on three key marketing resources, with CHBO as the preferred option rather than the more laborious and less effective dedicated website/social media method.
  • Marketing Results. The majority of “by owner” landlords say they use the Internet to promote their corporate properties. Most find the best qualified leads using CBHO (77%) as well as obtaining the most renters from Internet marketing.
  • Internet Reservations. In 2013, the report asked how the “by owner” segment feels about real-time booking reservations, in which the corporate property is leased through a computer website and the property owner has no interaction with the tenant. 23% of respondents say they have used one of these programs. However, it is now only 36% responding “no,” they would never rent their corporate property without talking to the tenant first (down substantially from 48% in 2013).
  • CHBO Services. Of the respondents using the services within the CHBO Certified Program, most use the following CHBO tools the most: (1) The property listings (2) The Property Owner Handbook (3)The MyCHBO documents page (4) Background checks.

The fifth most commonly used resource is the CHBO corporate housing report as it directs owners towards the most viable resources and methods. If you are interested in applying the information from the report to your efforts, we recommend joining the CHBO Certified Program.

Corporate Relocation Data Updates

Corporate housing Update

It’s that time again, and those eager to make the most of their participation in the CHBO Certified Program will want to have key points about the whole corporate rental market. A good source, and one we turn to time and again, is the annual Corporate Housing Provider’s Association report, and in a previous assessment of it we looked at the topic of relocation specifically.

Let’s do that again and gauge any recent changes, and how those might affect clients considering the use of the CHBO Certified Program for standard corporate rental options and relocations. First and foremost was this data point: “For the seventh successive year, relocation was the largest reason for using corporate housing in the U.S.”

corporate relocation

The average stay, however, declined to 78 nights, while the number of occupied units went up by almost 19% and revenue increased to more than $3.6 billion. With around 71k units, that indicates steady growth.

The Workforce Mobility Association, also cited in previous reports, said that “the average cost of transferring a current-employee homeowner is $90,017. A new-hire homeowner is somewhat cheaper, coming in at around $67,000. Renters are considerably cheaper to move, with a current-employee renter costing a little more than $20,000, and a new-hire renter costing slightly more than $17,000 on average.”

Firms also still find that home sale assistance costs (funds used to support homeowners making a move) remained steady, and that reluctance to move continues to decline.

How can this help you in terms of your corporate rental and the use of the CHBO Certified Program? If you take a few steps back from the data, one clear fact emerges – there is a consistent growth in demand for quality corporate rentals, and particularly relating to relocations. When you put your property into the CHBO Certified Program, it can be positioned as a home rather than an extended stay property. It will come as a turnkey solution rather than a sterile corporate rental in a long stay hotel.

Don’t overlook the trends – relocation is the main reason for corporate travel and you want to use every resource you can to show your properties as the ideal spot to stay as you transition from one area to another. The resources from CBHO can get you there easily and effectively.