Real estate investment is so diverse that it includes types of rental properties that you might have never even heard of, such as corporate rentals. But what is it? And can this strategy be a good investment for you? Keep reading this post to learn more about it and see if it could be right for you.
Corporate rentals are typically furnished apartments in cities or towns away from a travelers’ regular place of work. Although there are no rigidly defined classifications, corporate renters may consist of business travelers, executives, temporary workers, foreign workers, and contract workers. These corporate apartments also provide convenient travel for people relocating for work but do not want to take on the long-term obligations of buying a property.
Corporate rentals are short-term housing, temporary housing, and executive apartments. These short-term corporate rentals can offer cash flow solutions for large or small real estate investors, including students or recent graduates who may already have some experience in basic small property management tasks. At the same time, they build up their portfolios.”
But remember, corporate rentals are different from other furnished units for rent or short-term rentals such as Airbnb. They should be supplied with high-quality furniture, complete and well-maintained because they serve high-ranking clients and corporate travelers. It is important to note that many corporate clients have high expectations for their temporary accommodation, especially if they have opted for a furnished option.
Advantages of Corporate rentals
If you are considering investing in any type of rental property, you need to know that corporate rentals are a good choice because these properties are perfect for investors who are just starting. Let us look at the major pros of investing in this type of rental property and see why this is the case.
- High Rental Income
- Build Professional Relationships
- Type of Clients
High Rental Income
Corporate rentals can be a lucrative business for investors. Unlike furnished apartments, corporate rentals should be prepared with high-quality furniture and come with amenities like electricity, phone, water, and other essentials since they target corporate travelers, including high-ranked ones in many cases. This, however, dramatically increases its rental costs, which consequently increases the rental income for the investors.
Build Professional Relationships
Developing corporate client relationships is a great way to improve the regularity of bookings in your short-term rental properties. When you take on a corporate client, it is beneficial to both your business and your tenants to take the extra effort to earn their loyalty by providing a clean, fully furnished unit and by giving them an exceptional experience from the moment they step foot inside your property to when their booking comes to an end.
Type of Clients
One major challenge shared by real estate investors is dealing with different types of tenants or clients. Sometimes, different clients can be exhausting, time-consuming, and even damaging for the property. Renting a property for corporate rentals is more efficient because you will be dealing with professional employers who have a specific budget and are organized in what they do.
In conclusion, today, we discussed corporate rentals. Corporate rentals can be a lucrative investment opportunity, providing guaranteed income and built-in investors who do not require much in the way of deposit. However, you must investigate each situation individually, then weigh the advantages and disadvantages before making such a major decision.