Improve Corporate Housing With Tech Updates

Real estate property manager

Those who own corporate housing properties and short term apartments know that there are a lot of moving pieces involved. It is never just a matter of keeping properties booked and clients happy. There are matters such as upkeep and maintenance, cleaning, insurances, property management and more. This is why tech updates are one way to improve your corporate housing outcomes easily and efficiently.

Property management discussion

If you ask owners of short term apartments and corporate rentals, one thing that seems to constantly come up is the unpredictability of utility usage by a renter. One corporate client may use so little electricity or energy it seems as if they never arrived while others gobble up an entire household’s worth of energy. This can put a crimp in the bottom line, but tech advances can help.

There are now “smart home” options that can be just as effective for short term apartment rentals as everyday homes. They include:

  • Smart thermostats –Smart thermostats – Able to learn a tenant’s habits and needs, they save money by recognizing these patterns and shutting down when the home is unoccupied reducing costs. Adjustments can also be made remotely.
  • Energy monitoring – These apps are everywhere and can be used to monitor the rental property’s use of energy. Revealing consumption patterns can be a good way to work with renters to cut back on waste.
  • Smart lighting – Along with the internet connected appliances, doors and security, you can also have lighting that operates this way. Installing programmable switches, using motion sensing elements and that can be controlled by mobile devices allow lighting costs to be significantly reduced.

With just these tech updates, you can begin to reduce energy consumption that improve your bottom line.

Trends: Investing in More Corporate Housing Real Estate

The answer is “Yes.”

Question: “As a real estate broker does it make sense to learn more about corporate housing real estate investing.”Sold png logo

Why: “Because the survey says people want to buy more!”

If you believe in human evolution you want to believe we continue to do what works and we stop doing those things that do not work.  So it is important to know what current corporate housing real estate landlords plan to do in the future because this will give us the best picture of their current satisfaction.

Spoiler Alert: Yes, Corporate Housing Real Estate Landlords plan on investing in even more real estate in future! – Kimberly

Corporate Housing Investing Real Estate Trends: Do you have plans to buy more real estate?

So, we’ve all heard that the Real Estate Market is back. Based on the responses to our previous question, we also know that corporate housing is profitable.Investment in real estate

Consistent with previous years, more respondents say, “Yes, I plan on buying more real estate” (45%), than “No, I’m done with real estate” (18%).

With that said, we’ve noticed a new trend to watch. In previous years, there was a steady decline in those who said they were done with real estate investing. However, in 2015, the number of respondents who say they’re done with real estate investing rose 5%. This is the first increase we’ve seen in this number since we added this question to the survey in 2010.

We’re seeing some long-term investors exit the market after weathering the ups and downs of the last 10 years. They’re selling their properties and aren’t re-investing right away.

* In the past, some economists said they believed there was a correlation between the slow pace of the real estate recovery and people feeling stifled by banks that didn’t want to lend money at low interest rates. With this in mind, we added a question in 2011 to see if people felt hindered by the banks. Today, this is no longer a factor.

Learn more Corporate Housing Real Estate Trends

Trends: Corporate Housing Real Estate Profitability

As you may have read in other blog posts there are lots of reasons a landlord may have for turning their real estate into a corporate housing rental. The reality of life is things do change and corporate housing can be a great solution for your real estate whether or not that is the reason you purchased the real estate in the first place.  

Ok, so now you know you can turn lots of real estate into great corporate housing rentals, however the next question is, “As a corporate housing real estate landlord can I make a profit?” Since you want to know, for the last 5 years we have been asking that question on our CHBO Corporate Housing Real Estate Survey. – Kimberly

Corporate Housing Real Estate Profitability

Furnished rentalIf you’re new to corporate housing rentals, you may want to know what other corporate housing property owners think about profitability.

Great news, for the fourth year in a row, more than 9 out of 10 respondents report their properties are profitable or breakeven. (This response is down slightly from 2014, which was the most profitable year since we began asking about profitability in 2011).

Continuing an encouraging trend, more respondents say their properties are “very profitable,” up 2% over last year.

Over the last few years, there has been a huge 18% drop in the number of property owners who say they just “break even” with their rentals. However, in 2015, this number went up by 7%. As we seen new investment owners enter the market they are purchasing real estate at higher rates which increases their expenses compared to previous owners who had owned their rentals for a while and had a lower cost basis on their rentals, thus higher profitability.

Learn more Corporate Housing Real Estate Trends.