Have you ever wanted to invest in real estate? Maybe you’ve been looking for a way to make some extra cash, or maybe you’re just curious about owning a property. The good news is that there are several ways you can get started investing in real estate—one of them is by buying a home that has been converted into corporate housing.
Corporate housing is a different style of housing and, as such, requires a different level of attention to detail and management which means it is not the right investment style for everyone. However, it can be an excellent way to diversify your investment portfolio and take advantage of a distinct market niche.
Before you decide if corporate housing is the right investment style for you, you should understand a few things about the market, what it takes to succeed, and how you can best position yourself for success.
What Makes Corporate Housing So Profitable?
Corporate housing is similar to short-stay rentals, priced to be more cost-efficient than hotels and more suitable for slightly longer stays. As corporate housing, you can price yourself at around 50-60% of the price of benchmark hotels in the area whilst offering far more. For example, if a hotel room is $100 a night, you would set your nightly price at around $50 a room. If you had a fully equipped three-bedroom house, you might set the nightly price at $150. This would then work out at approximately $4,500 per month. If you compare this to the monthly rent of a long-term rental, you can quickly see a large potential upside.
You could also consider having suites within your property or having multiple bedrooms available that all have their bathrooms and kitchenettes so that guests can feel like they are living in their own home during their stay rather than just renting someone else’s property for short periods as with some traditional short-term rentals such as Airbnb or HomeAway which any local government agencies like hotels do not regulate is, this means that they have no rules governing what they charge guests.
How To Increase Your Net Income With Corporate Housing?
The main benefit of corporate housing is to increase your net income, and there are a few things that should be considered to ensure you maximize your income, including:
- Maintain a high occupancy rate: If you can fill up your units at all times of the year, then you can maintain a higher occupancy rate which means more money for you.
- Choose the right location: Choose a good location where many people need to stay in apartments or houses while they are working on projects or traveling through the area. This is important because these people will not have time to look around for places to stay, so they will just choose one near them.
- Work with an experienced management company: It is best to work with a reputable management company that has been around for some time so that they will be able to give you good advice when needed and help out when needed!