“How should I price my corporate housing rental property?”
“When should I negotiate, and when should I hold firm on my rates?”
What are the most asked questions at CHBO? You got it, “What are the current Corporate Housing Rental Rates.” Because these are the top questions we’re asked at CHBO, we’ve divided this topic into three sections in our CHBO Annual Report: Variance, Actual and Discounts.
Variance: Changes in Rental Rates
We asked respondents to evaluate their current rental rates compared to the previous year for the exact same rental property.
The great news is that 39% of respondents – an all-time high – report having higher or much higher rates in 2015. This number has been rising since 2013, and it’s significantly above the 22% reported in 2011.
Another positive sign… We saw a 3% decrease in the number of respondents who say their rental rates were identical to the previous year.
In 2015, only 4% say that had “lower” or “much lower” rates than the previous year. (This is consistent with 2014.) Collectively, this is a big contrast to the 2011 Corporate Housing Report in which 16% said they had “lower” or “much lower” rates than the previous year.
Actual: Rental Rates
Additional rental rate data was collected for month-to-month rentals based on the number
Never underestimate the true economic value of corporate housing!
In our ever changing world of hospitality choices it is easy to blur the lines from one lodging solution to the next. However as a lodging consumer or regulator it is vital to understand the differences so the sins of one product are not inadvertently applied to the wrong industry. CHPA, The Corporate Housing Providers Association is working diligently to better educated everyone on the differences and benefits of professionally managed business corporate housing rentals vs other rental options found in today’s share economy. Please help spread the word of the importance of professional corporate housing. The following is a recent publication from CHPA…
The Value of Corporate Housing by CHPA
Corporate housing is fundamentally different from other types of short-term rentals. This well-organized industry provides a valuable service to businesses, employees, and others in need of temporary housing while having a sizable economic impact on the communities where it operates. It is important that policymakers and officials understand the industry’s importance and are cognizant of its particular characteristics and value when creating and implementing short-term rental policies. Corporate housing providers support fair and reasonable regulations.
If we were to quickly summarize the three ways that short term rentals are always better than hotels, our list might look like this:
- More privacy
- More space
- A lot more money in the pocket
After all, furnished rentals are usually properties that initially were built as homes or as seasonal homes for people who enjoy vacationing or staying in an area. Unlike the hotel-based corporate apartments commonly used, privately owned corporate housing (also described as corporate housing by owner) tends to look and feel nothing like a hotel. The furnished housing of this kind will include apartments, condominiums, townhouses, single-family homes, and more.
Naturally, that means that someone in need of long or short term housing has the option of staying in a place that feels like home. That may not seem like a big deal, but in an article in The New York Times, experts looked at the psychology of moving and relocating and summed it up like this: “Whether one moves frequently or almost never, moving is an intensely emotional experience.” And whether we admit it or not, a long stay away from home is a lot like moving and/or relocating.
So, furnished corporate apartments come with the instant advantage of offering you the ability to feel at home. However, there are still those three points listed above.
When you enjoy time in a corporate apartment, you are not going to experience the same lack of privacy that a hotel demands. After all, while you can book a maid service with almost any temporary furnished apartment, you get to decide just who and when this happens.