the benefits of corporate housing
what is the biggest benefit? be able to charge higher rental rates. Landlords can justify rent increases because companies often dictate their own specific requirements associated with corporate housing:
- the properties are fully furnished to a high standard
- each home includes all necessary appliances, utilities and amenities
- artwork and design should create a welcoming environment
- Continuous communication with the company’s HR team and tenants is crucial
- must include maintenance and cleaning services
- additional premium options may be required
- a kitchen stocked with food, drinks, and the basics
- toiletries and household items
- cleaning service
- television and internet
- brand appliances
- car or transportation options
- security or doorman (apartments)
- parcel and mail delivery
- frequent housekeeping or staff on site
- chef or food delivery
- write a letter to HR staff at top companies in your area (try searching companies on linkedin to guide and message your HR team)
- find the top insurance companies in your area for home, flood, fire, earthquake and other types of property insurance
- contact these companies directly and online
- Does the company plan to rent the property short-term or long-term?
- Will the lease cover periods when the property is unoccupied?
- How often does the business expect tenants?
- what are the requirements for the home? who will pay for the modifications?
- Are additional services required?
- will there be construction costs?
- calculate all construction costs
- determine costs for furniture and utility upgrades
- create a monthly projection of all additional services
- be sure to add a premium to these costs and services
Because of these requirements, a property manager can typically justify pricing your property at 2-3 times the typical sales price (or even more!). even when considering the investment required to meet corporate housing standards, the ability of owners to price at such a level will immediately increase income.
Also, dealing specifically with a business rather than individual tenants can ease the hassle of handling complaints or other potential issues. if you work with a specific business, the company may rent the property at a premium so they always have accommodations available for incoming employees and their families.
what you will need at home
Depending on the company you’re working with, your property may require a few prerequisites to match the company’s housing needs:
If you are catering to high-profile residents, such as executives or members of the management team, you may need to outfit your property with luxury amenities and services:
While outfitting your property for these services will require a larger investment, it will allow you to charge at a premium, further increasing your profits.
our process step by step
If you’ve recently decided, “I’m going to rent my house to corporate housing,” then this step-by-step process will help you attract the right companies and prepare your home for corporate tenants.
#1 Determine your target businesses and market your property
Before you consider renting your home through a corporate housing company, find out which businesses in your area need housing and whether you want to market your property directly to these companies or through a third party.
Notice: If you live in an area where there are only a few major companies, this part won’t be easy. however, any large town or city will have several businesses available that may require corporate housing.
to start building buzz and marketing your own business:
Although the process can be tedious, it is a necessary first step if you choose to market your property directly to companies. but if you want to save more time, consider working with third party companies. at zeus living, we provide a complete property management and marketing service; all you have to do is sit back and collect your rent.
#2: Know your partners
If you choose to take it all on your own, then you must take the time to understand your future partners. here are some questions to ask:
Ideally, you’ll work with a company that decides to rent your property on an ongoing basis and provides you with a list of modifications that will be required to move forward with the lease; be sure to find out whether or not the company will pay for the modifications and upgrades. most companies will require you to pay for these adjustments out of pocket, but we take care of that for you.
#3 agree on changes and set a price
Once you’ve found a corporate client and understand the upgrades you’ll need to complete, it’s time to set a price. consider how much you need to spend on upgrades and additional features before you lock in a deal.
Traditionally, the cost of renting an apartment is about 1% of the value of the house per month. for corporate housing, the cost will be at least 2-3%, and this will increase based on the level of amenities and luxuries available.
#4 welcoming new tenants and maintaining the relationship
Once you’ve decided on the rental price and drawn up the contract with your corporate client, you’re ready to start welcoming new tenants!
During this process, it is important to stay in contact with both the tenant and their HR representative to ensure everything runs smoothly. especially early on, you’ll want to make sure you listen and respond to comments; it would be a shame to invest in your house, prepare it for corporate housing and then lose your client or tenant due to miscommunication.
While renting your property through corporate housing can make a lot of money, it requires a substantial investment and carries some risk. We take the hassle out of renting your home to corporate housing by doing the work for you. visit our website to learn all about our property management services.