Renting out your house to companies or business travelers is gaining popularity through property owners. If you are looking for a profitable property rental modality, this brings major opportunities.
In this article, we are going to talk about everything related to corporate housing. What is it exactly, do you get more out of it compared to other property rental options, and what are some of the advantages?
Table of Contents
More and more people want to work remotely and actually can work remotely. This is causing a big shift in the housing market.
More companies are looking for furnished flats for their staff worldwide. Even holiday homes are expanding their marketing nowadays to reach both holidaymakers and business customers. Renting out your house to companies is becoming a really interesting leasing option for flat owners.
The corporate rental market continues to grow year after year and already exceeds the hotel market, creating new opportunities for apartment owners that can see in this rental modality significant benefits when comparing with long term rental or holiday short term rental.
Advantages of corporate rentals
Higher-income than traditional rental
You can ask for 40% more rent on average with corporate rentals than with traditional rentals. This gives you more opportunities to maintain the house regularly, so it stays up to date and in good condition. Professionals and executives need corporate housing. This also results in high-quality tenants.
No Payment issues with tenants
One of the advantages of corporate rentals is that with corporate housing it is often the company or the booking agent that pays the rent. This reduces the risk of arrears, etc. Often the tenants also have a lot of respect for the environment and the neighborhood since they are living here for a short period and want to experience the new environment/culture.
Availability of the apartment
Property owners also keep the flexibility in deciding when to rent and when not to rent their property. This can be chosen based on seasonality if you want to change your rates. With a traditional long-term rental, your rate is locked in for the entire lease term and you have to wait at least a year to have the possibility to change it.
Who are the corporate tenants?
In this rental modality, the tenant is a company and it’s the company that pays the rent to the landlord and in whose name the lease agreement is made out.
There are many different reasons why a firm would need a short-term furnished flat for their staff:
- Job relocation in a different office
- Workers temporarily sent abroad
- Moving to a new area before securing long-term housing
- Seasonal and construction workforce accommodations
How to rent your house to companies or business travelers
For those who want to invest in a corporate rental or want to rent out their long-term flat to companies, there are some things we think you should take into account.
Who do you want to reach?
Are you looking to reach a digital nomad or a large company that sends new employees every year? If you know who your target group is, you can keep this in mind when choosing the location, interior,…
Do you want to offer a luxury rental, a mid-level rental, or a basic solution?
Buy the furniture and décor with your chosen client in mind. If you don’t want to offer luxury rentals, you don’t need to buy designer furniture. Buy a nice set in your local shop or a department store and you are ready to go!
When you rent out holiday flats, you have already furnished, decorated, and supplied the necessities. This gives you an advantage over those who want to convert part or all of the flat into a business accommodation.
A flexible rate is key.
The beauty of corporate housing is in the flexibility. You can always decide to change your rates based on the market activity.
Investing in a corporate rental
In case you would like to jump on the new wave of remote work and corporate rentals, you have three ways to invest and start renting out your house to companies:
- Invest in a new flat for corporate rental
The most obvious is to invest in a new condo or even an entire complex devoted to corporate housing needs.
- Convert your vacation rental into a corporate housing solution
You can turn your already existing holiday home into a corporate housing solution. Add extra beds so more people can sleep or offer it to the typical digital nomad looking for sunshine in winter. This way you are not seasonal and can rent out your property all year round.
- Convert a single-family home into a corporate housing solution
Many remote workers are looking for new ways to work. Sometimes they want to escape the city and find a quiet atmosphere, or vice versa.
So, there is more to it than meets the eye if you want to do it right. Keep the above-mentioned pointers in mind and you can do little wrong.
If you have any questions regarding renting out your house to companies, please do not hesitate to contact us. Globexs is ready to help you as much as we can.
Subscribe to the Globexs newsletter
We are passionate about Global Mobility, and we would love to share our enthusiasm with you. But we are also dedicated to efficient communication. Please let us know what topics you are interested in so that we only send you newsletters with relevant information.