Why Travelers Choose CHBO Over Hotels and Extended Stays

Fully furnished apartment for rent by CHBO

There are many reasons that travelers make extended stays in specific cities or regions. Though many might experience a “knee jerk reaction” of thinking about booking their stay in some sort of hotel or property designed for extended stays, many are reconsidering. Instead, the ever-increasing trend is toward booking stays in CBHO or corporate housing by owner properties. There are many reasons, and these include:

  • Hotels and extended stays are typically far more expensive.
  • Most extended stays are designed for convenience and for business travelers only, this can make them extremely cold, generic and very uncomfortable. For example, imagine eating, sleeping, and relaxing all on one big space for weeks or months on end. Imagine uncomfortable and un-homelike furnishings.
  • Essential services are not part of the rate of most extended stays and this means that, in addition to already being more expensive, there are further costs. For example, laundry means going to a Laundromat yourself or paying someone a high amount to do it. With furnished rentals, the machines are there and you can do loads as you watch TV and make a delicious home-cooked meal
  • Travelers in CHBO properties begin their stay with a friendly greeting by a property owner or local. This is much more sincere and appealing than the front desk people who may have a sort of “canned” smile and who must be polite as it is part of the job. With CBHO, you meet a host who looks after your needs and puts a much more humane face on everything from service calls to departures.
  • A CHBO property is not a “branded” property. The owner is not trying to sell anything extra, and so your weeks or months are just as they are at home, and without a constant flood of brands and products being promoted at every turn.
  • CHBO properties are often much larger and roomier. Whether on your own or with fellow travelers, an authentic home provides you with a lot more living space with both indoor and outdoor living spaces.
  • Most CHBO properties also allow you to bring pets, and this can be a tremendous advantage whether traveling alone or with a group; further ensuring it feels like a home away from home.
  • Finally, hotels and extended stays are always chosen for their convenient locations. Close to business parks or major business areas, they may not be the nicest places to remain for weeks or months at a time. CHBO properties typically appear in actual housing areas including apartments, neighborhoods and subdivisions.

Corporate rentals vs Hotel stays

Travelers have consistently proven that they like the idea of a hotel’s customer service, but on almost all other points, they would rather be in a more private, home-like environment. This is why there has been such a surge of interest in CHBO properties. They let visitors enjoy the same convenient locations but in much roomier, more comfortable and more appealing settings, ensuring a stay is as satisfying as possible.

Three Ways to Prepare Your Short Term Rental for Severe Weather

Save Download Preview flooding houses with rising water

Weather can be unpredictable. Recent hurricanes and flood events in the Caribbean, Florida, Louisiana, and Texas have shown that, as did the tragic fires in Northern California. Your corporate rental is a major investment that you want to protect. Having homeowners insurance should be a given, as well as flood insurance in low-lying areas requiring you to be covered. Beyond insurance there are other ways you can not only prepare your home but also protect yourself from income lost to severe weather that prevents a tenant’s stay. Here are three ways you can prepare your short-term rental for severe weather.

A meteorologist displaying hurricane supplies

Supply “Must Have” Items in Your Corporate Housing

Just like you would in your own home, provide basic emergency supplies for corporate tenants. Bottled water, canned food, a first-aid kit, a hand-crank radio, flashlights, and an emergency kit are important to have on hand. Secure these items in a cabinet with a combination lock. When extreme weather occurs, provide your tenants with the combination. Finally, be sure your home is well maintained both inside and out. If high winds, heavy rain or snow strike, be sure your home is up to the challenge.


Offer Travel Protection Insurance for Hurricane Rentals

In some states where vacation rentals are more common, if you do not offer your tenants a travel insurance option, and a mandatory evacuation prevents a stay, you must refund them. However, if you offer them insurance, no refund is required. In other states, no refund is required unless your lease agreement covers it. You’ll need to know the laws regarding severe weather refunds in your state and municipality, run it by the attorney drawing up your standard lease contract.

This is distinct from a security deposit because it is different than “tenant caused” damages. CHBO’s covers you in case of tenant accidental damage, a cost that can be passed on the tenant in lieu of a security deposit.

Car covered with Ice

Add a Severe Weather Clause to Your Lease Agreement

In the case of a mandatory evacuation, you could offer a refund or a rebooking at a discount. But you need clear language that only mandatory evacuations apply; guests who are simply disappointed because rain is predicted can’t get a refund, as the home is still usable.

In the case of mandatory evacuations, you could issue a refund in advance when government authorities declare the evacuation, or if the stay is in progress, partially refund for unused days, or credit guests for a future stay.

Again, be clear that this applies only in the case that your property cannot be used due to evacuation. This happens most often with severe storms or hurricane rentals, where there are a few days of advanced notice. If roads are icy but not closed, for example, this doesn’t mean a refund as your short-term rental itself is still usable and the tenant should use chains or winter tires with four-wheel drive.

You may not be able to predict when and where severe weather strikes. You can, however, prepare your corporate rental for hurricanes and your lease as best you can so that when bad weather strikes you are ready.

Business-wise: How Will the IRS Treat Your Corporate Housing?

Tax return for Corporate Housing

There are different reasons people invest in real estate rentals. It may be your primary residence, vacation home, or a pure rental property. You may be renting your primary residence or a portion of it, or a vacation home that you use with different frequencies. Whatever the case, Ben Franklin said, “The only two things certain in life are death and taxes.” So, if you’re renting within the Unites States and you pay U.S. federal taxes, you should be ready and prepare for them. April 15th will be here before you know it, so with that in mind let’s look at how the IRS views your corporate rental.

How You Use Your Corporate Rental Matters

The CHBO Handbook has this to say about taxes on your furnished loft:

“The general rule for renting your personal residence is that for a home rented for less than 15 days in a calendar year (assuming a calendar year taxpayer which includes practically all individuals), the owner cannot deduct any of the related rental expenses, but isn’t taxed on any of the rental income (Code Section 280A(g)). This applies to the United States of America.

Let’s look a bit more closely and pull in some additional situations. The key factors are 1) How often you or an immediate family member uses your corporate housing, and 2) How many days it is rented.


In A Calendar Year, How Often Do You Use It? In a Calendar Year, How Often Do You Rent It? IRS Considers It A… Must You Report Rental Income? Can You Deduct Business Expenses?
More than 14 days OR more than 10% of Days Rented Less than 15 days Personal Residence No No
More than 14 days More than 14 days Personal Residence Yes Yes
14 Days or Less OR less than 10% of Days Rented More than 14 days Corporate Rental Property Yes Yes

From this information, we can make some generalizations. If you rent your property for more than 14 days, you do have to report your income, and you can deduct the expenses. If you don’t, you don’t have to report your income nor can you deduct expenses.

How You Use Your Corporate Rental Matters

How Losses are Treated

Another consideration is Passive Activity Losses, or PALs. These are operating losses over and above your rental income for the tax year. Generally, you can deduct up operating expenses up to the amount of income you make. After that, there are limitations and you may be unable to offset your losses.

Understanding the rules around how your furnished loft is taxed will help you prepare for meet your tax obligations and even help you determine how much you can put back into the property. It should be said that US code is complicated. These are basic guidelines for how the IRS will treat your furnished rental, but it is recommended that you consult with a tax professional. For more great tips on how to maximize your corporate rental investment, download the free CHBO Handbook or call CHBO today at 877-333-2426!