Dealing in Corporate Housing

You live in a business center and you would love to take advantage of the business renter market.

Many of them end up at business traveler hotels, but companies may send employees out for weeks or months at a time.

When the longer term corporate clients need a housing solution for longer assignments, they look for corporate housing options in the local area.

You have a higher turnover rate with corporate clients than you do with a typical tenant, but you also enjoy higher rent prices and the potential for long term arrangements with a particular company.

Look at Lease Terms
You aren't going to catch any corporate clients with a year long lease.

You need to decrease your lease terms for short term rentals, with 6 months being an exceptionally long lease in this circumstance. In most cases, you're looking at a 1 to 3 month lease.

Look at local job listings in your area, particularly those involving contract jobs.

Get an idea of the average contract length through these job listings and by talking to bigger companies in your area.

You can tailor your lease terms to the demands of your local area.

The shorter the lease term, the higher the payment.

You may work out discounted rates with a particular company, but you should always be compensated for the trouble that goes into dealing with fast tenant turnover.

Handle Your Amenities
When you handle corporate housing, you are a cross between a landlord and a hotel owner.

You have to provide a certain level of amenities to attract the business traveler.

It takes more work than renting out an empty apartment, but you quickly realize the benefit through higher rental prices.

The primary amenity to handle is furniture.

Provide comfortable, useful furniture for your corporate housing units.

Think about what the typical business traveler wants and needs.

You want to focus on providing a comfortable bed, a solid work station, and stocking the house with standard supplies such as cooking ware.

You don't need to focus as much on the social areas of the house, since it's likely the employee is far from home and focused on his assignment.

If possible, bundle utilities and provide options such as free wi-fi to further sweeten the deal for a company.

Provide Local Resources
The employee living in the corporate housing apartment probably doesn't know much about the area, particularly if you're located in a smaller town.

Provide information on local businesses, restaurants, and other attractions so the employee gets a chance to do more than focus entirely on their work.

They might have to do that as a priority, but there's time to enjoy the local sights.

You may want to suggest social groups and nightlife areas so the employee has some time to make friends and feel less isolated during their assignment.

Pursue Corporate Contracts
You may not have an individual employee staying with you for a significant length of time, but if you provide a quality housing experience the company who employs him may be more than happy to work out a long term contract for your corporate housing.

Consider reaching out to the company if possible once the employee's lease term is almost up.

You may also want to get started with your marketing by contacting companies who have satellite offices in your area.

 

Posted on Dec 29, 2014

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