Making More Money with Corporate Housing
What Is Corporate Housing?
Corporate housing is an advanced rental model where a home or apartment owner can let their furnished houses to a business. This concept allows owners to make up to eight or ten times more money than the normal monthly rent. The design is similar to a hotel only that daily housekeeping is excluded. This setup can be very beneficial to expatriates. There are three main ways to customize a house depending on the customers. Some of the factors to consider include luxurious environment, home environment or how long a client wants to stay in the house. This makes your competition for accommodation space equal to that of hotels.
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Why Is Corporate Housing So Profitable?
Profits go over the roof when a house is rented for over twenty days. Long term vacation rentals in furnished apartments yield higher returns. The owner can choose to offer discounts. If, for example, a hotel offers a room for a hundred dollars per person, you can choose to compare the prices and services they offer and cut the price by half. However, if you find out your services are exceptional, like a double-decker bed and a bathtub you can charge one hundred and fifty dollars per night. At the end of the month, you end up earning three times more than a landlord.
Most employees in corporate relocations do not prefer buying homes in their new city of work. This is where renting a home comes in. Property management companies such as National Rental Assistant come in handy to solve this problem. Employees find it difficult to buy homes due to lack of loans, difficulty to sell their current homes and sometimes the relocation is only temporary. Rental Assistance also provides vacation apartments for customers on holidays. The company offers area tours, rental property tours, demographics and environmental data to their clients. This helps them get a lot of customers and make more money than conventional landlords.
How to Start Corporate Housing
A pool of data and connection with large companies is required. These links can be found on LinkedIn, after which you should write to the Human Resource departments of large firms. These companies include construction and fleet companies. Developing a website also helps expand the market.
It is advisable to have a large number of clients to avoid concentrating on blue-collar clients. Hosting construction workers, for example, can give a lot of money since they don’t mind sharing bathrooms. Such clients are not too demanding and they will stay longer. With this consideration, your property management firm will succeed. On the other hand, executive clients prefer high-end housing and this needs heavy investment. These services are offered Corporate Housing by Owner which began its operations in 2015. They offer vacation rentals and premier hotels to their clients using their websites.
Disadvantages of VIP Accommodation
Most high-end clients and executives demand high-quality services. They expect everything to run smoothly without a hitch and this can be quite expensive. They like working in non-office environments, therefore, housekeeping will be an added cost. To be taken seriously by executive rental clientele you will need to have around the clock website. Otherwise, you will end up missing clients.
The corporate housing market is a very lucrative business. Most of the times rental prices shoot during peak seasons and this gives an opportunity to charge higher prices. When investing in this business model it is advisable to keep with the market trend. This helps to avoid losses during low seasons. At the end of the day furnished corporate houses earn more than the traditional landlord style. There are more benefits to change the style of rental houses to a more profitable business.