Rent Your House to Corporate Housing and Start Earning More Income Today!

How to rent my house to corporate housing? 20 Tips

Renting your property as corporate housing involves renting out a furnished apartment or home to a business for companies that regularly have traveling employees who are often away for weeks or even months at a time.

  1. Research the market: Determine demand and competition in your area. If your rental is near the city center or the headquarters for large firms, for example, this could be an indication of opportunity.
  2. Develop relationships: Develop relationships with corporate HR managers and people connected to traveling executives or organizers of housing for employees.
  3. Determine your target businesses: Figure out which businesses in your area need housing.
  4. Market your property: Market your property directly to a corporate housing company or through a third party.
  5. Agree on alterations and settle a price: Agree on any alterations that need to be made to the property and settle on a price.
  6. Furnish the property: Furnish the property with high-quality furniture and amenities.
  7. Set up utilities and services: Set up utilities and services such as cable, internet, and cleaning.
  8. Screen tenants: Screen tenants carefully to ensure they are reliable and trustworthy.
  9. Sign a lease: Sign a lease agreement with the corporate housing company or tenant.
  10. Maintain the property: Maintain the property to ensure it remains in good condition for future tenants.
  11. Verify clients’ identification cards: Verify clients’ identification cards to ensure they are legitimate.
  12. Screen the company for credit background: Screen the company for credit background to ensure they are financially stable.
  13. Choose which rentals: Choose which rentals to offer based on the needs of the corporate housing market.
  14. Build up relationships with local companies: Build up relationships with local companies to increase your chances of finding tenants.
  15. Identify your target market: Identify your target market and market the property to them.
  16. Invest in a new flat for corporate rental: Invest in a new flat or even an entire complex devoted to corporate housing.
  17. Ensure compliance with Fair Housing Act laws: Ensure compliance with Fair Housing Act laws to avoid discrimination against applicants due to a protected class.
  18. Consider hiring a property management company: Consider hiring a property management company to handle the day-to-day operations of the rental.
  19. Set up a system for maintenance and repairs: Set up a system for maintenance and repairs to ensure the property remains in good condition.
  20. Stay up-to-date on the corporate housing market: Stay up-to-date on the corporate housing market to ensure you are offering competitive rates and amenities.

Top 10 Pros And Cons Of Renting Your Property As Corporate Housing

Pros:

  1. Higher rental income: Landlords who choose to rent their property as corporate housing often make as much as three or four times as much money as they would if they were to rent the same property as a typical rental.
  2. High-quality tenants: Corporate housing is usually fully furnished, serviced, and available for flexible stays, which attracts high-quality tenants such as traveling executives or employees who spend a lot of time traveling.
  3. Reduced payment issues with tenants: Corporate housing tenants are often sponsored by their employers, which means that payment issues are less likely to occur.
  4. Fixed income forecast: Owners gain predictability in income by knowing the approximate duration of guest stays and forecasting rental income.
  5. Flexibility: Corporate housing can offer flexible lease terms, which can be beneficial for both the landlord and the tenant.
  6. Opportunity to enter a lucrative industry: Corporate housing can be a highly profitable rental strategy, especially in areas with high demand.
  7. Greater control over the property: Landlords have greater control over their property when renting to corporate housing tenants, as they are often more responsible and respectful of the property.
  8. Lower risk than traditional rental: Corporate housing tenants are often sponsored by their employers, which means that there is a lower risk of payment issues or damage to the property.
  9. Potential for repeat business: Corporate housing tenants frequently return for work, creating potential for recurring business in the same area.
  10. Tax benefits: Landlords may be eligible for tax benefits when renting their property as corporate housing.

Cons:

  1. Higher marketing costs: Corporate housing requires more marketing expenses than traditional rentals.
  2. Higher cleaning costs: Corporate housing requires more frequent cleaning than traditional rentals.
  3. More turnover and wear & tear: Corporate housing tenants have shorter stays, causing more turnover and increased wear and tear on the property.
  4. Potential wear and tear on furniture: Corporate housing tenants may not treat furniture and amenities as carefully as long-term tenants, potentially requiring replacements or repairs.
  5. Need to deal with tenants: Landlords need to deal with tenants more frequently than with long-term rentals.
  6. Expensive to invest: Corporate rentals require a good amount of capital to prepare them, which can be expensive.
  7. More competition: Corporate housing is becoming more popular, which means that there is more competition in the market.
  8. Lower occupancy rates: Corporate housing units often have lower occupancy rates than traditional rentals.
  9. Responsibility for utilities: Landlords are often responsible for paying for all utilities when renting their property as corporate housing.
  10. Legal compliance: Compliance with Fair Housing Act laws is essential for landlords to prevent discrimination against applicants based on protected classes.

Common challenges that landlords face when renting out a house as corporate housing?

  1. Higher marketing costs: Corporate housing requires more marketing expenses than traditional rentals.
  2. Higher cleaning costs: Corporate housing requires more frequent cleaning than traditional rentals.
  3. More turnover and wear & tear: Corporate housing tenants often stay for shorter periods of time, which can lead to more turnover and wear & tear on the property.
  4. Potential wear and tear on furniture: Corporate housing tenants may not treat the furniture and amenities with the same care as long-term tenants, which can lead to furniture replacement or repair.
  5. Need to deal with tenants more frequently: Landlords need to deal with tenants more frequently than with long-term rentals.
  6. Expensive to invest: Corporate rentals require a good amount of capital to prepare them, which can be expensive.
  7. Legal compliance: Landlords need to ensure compliance with Fair Housing Act laws to avoid discrimination against applicants due to a protected class.
  8. Higher expectations from tenants: Corporate housing tenants often have higher expectations for the quality of the property and amenities.
  9. More competition: Corporate housing is becoming more popular, which means that there is more competition in the market.
  10. Lower occupancy rates: Corporate housing units often have lower occupancy rates than traditional rentals.

How can you determine the appropriate rental price for a corporate housing property?

  1. Know your market: Research the local market to determine the demand for corporate housing and the average rental rates in the area.
  2. Consider the property’s value: Typically, the rents that landlords set fall between 0.8% and 1.1% of the home’s value. For example, a home valued at $500,000 could charge between $4,000 and $5,500 per month.
  3. Factor in the cost of furnishings and amenities: Corporate housing tenants expect a high level of comfort and convenience, so it’s important to factor in the cost of furnishings and amenities when determining the rental price.
  4. Use a rent calculator: Some websites offer rent calculators that factor in the property’s location, value, size, and furnishings to determine an appropriate rental price.
  5. Consider the length of the stay: Corporate housing is often priced and leased by the week or month instead of by the day. Consider offering discounts for longer stays to attract tenants.
  6. Be competitive: Set a rental price that is competitive with other corporate housing properties in the area.
  7. Be flexible: Be willing to adjust the rental price based on demand and occupancy rates.

Documents required to rent my house to corporate housing

Rental Application:
A rental application should include all the basic information about your prospective tenant, including their name, address, social security number, driver’s license number, and other relevant information.

Lease Agreement:
A lease agreement is a legally binding document that details the terms and conditions of the landlord-tenant rental agreement.

Booking Confirmation:
A booking confirmation is a document that confirms the tenant’s reservation and outlines the details of the rental agreement.

Invoice for First Payment:
The first payment invoice specifies the initial payment amount and its due date in clear terms.

Pet Policy:
If the property has a pet policy, landlords should provide this information to potential tenants.

Certificate of Occupancy:
Landlords might be required to furnish a certificate of occupancy, confirming legal building occupancy per zoning and construction codes.

In addition to these documents, landlords may also need to provide information about the property’s amenities, furnishings, and services. It’s important to provide accurate and complete information to potential tenants to ensure a successful rental experience.

By providing the necessary documents and information, landlords can attract high-quality tenants and ensure a smooth rental process.

Are there any specific legal requirements for renting out a house as corporate housing?

Fair Housing Act:
Landlords need to ensure compliance with Fair Housing Act laws to avoid discrimination against applicants due to a protected class.

Zoning Laws:
Landlords need to ensure that their property is zoned for corporate housing and that they are in compliance with local zoning laws.

Safety Codes:
Landlords need to ensure that their property meets all safety codes and regulations.

Lease Agreement:
A legally binding lease agreement outlining rental terms and conditions is essential for landlords and tenants.

Security Deposit:
Compliance with state laws on security deposits is crucial for landlords, covering amounts and return conditions.

Insurance:
Landlords need to ensure that they have adequate insurance coverage for their property, including liability coverage.

Tax Implications:
Landlords must navigate tax implications when renting as corporate housing, ensuring full compliance with tax laws.

Conclusion

In conclusion, Renting your house as corporate housing can be a lucrative venture, but it comes with specific challenges and legal responsibilities. To succeed, thorough market research, relationship-building, and proper pricing are crucial. Mitigating higher costs, accommodating tenant expectations, and maintaining compliance with laws are essential. By offering high-quality, well-furnished properties, you can attract reliable, long-term tenants. Enhance success in a profitable industry with flexible leases, market competitiveness, and vital legal compliance for smooth rentals.

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