AvenueWest Arizona is a fully licensed Real Estate Brokerage in the State of Arizona that specializes in providing high quality short-term rentals for 30+ day stays via Property Management specifically utilized for corporate housing. This week we will help answer the question “Is Corporate Housing a good fit for YOU as a property owner?”
There are 4 main points to discuss to assist you in answering this question:
HIGHER ANNUAL RETURN VS CONSISTENT MONTHLY INCOME
Corporate Housing income is typically closer to hotel rates instead of real estate rental rates. This is great news for our property owners over a 12 month period, but may not translate into income in a given month. Most leases are written as month to month with 30 day minimum stays. There could be gaps between guests of days, weeks, or even months with no rental income during those gaps. In addition, many relocation companies expect 30 or even 60 day net terms to make rental payments. The reason employers and other temporary travelers are willing to pay higher rates, is because they also get flexible lease terms, a higher delivery on service/cleanliness, and payment terms that fit business needs.
TOLERANCE FOR UNEQUAL PAYMENTS
Traditional rentals tend to start on the first of the month and end of the last day of a month. Also, the property owner typically knows how much income to expect each month. With corporate housing a client may move in at any time, and frequently with very little notice. Further, they may vacate any day of the month once they’ve given proper notice. This combined with the 30/60-day terms mentioned above can results in large fluctuations as to how much an owner may receive in a given month.
Thus, if an owner needs the consistent, predictable monthly income to perhaps pay a mortgage or cover another regular monthly payment, corporate housing may not be the best fit. However, if there is tolerance for inconsistent income, but higher annual income is desired then corporate housing vs traditional property management could be for YOU.
If one of your main motivations in considering Corporate Housing is the preservation of your asset, then corporate housing is a great fit. One of the regular times property damage can occur is as tenants move furniture in and out. With fully furnished rentals the occupants are arriving with a suitcase or two, but not moving furniture or other large items. Corporate clients also expect everything to be in working order, new or like new, clean and well maintained. If they are paying hotel rates, the expectation is for a similar or better experience. With systems and attention to detail AvenueWest Arizona ensures this happens consistently, thus meeting the guest’s expectations and protecting and preserving your asset to a higher standard.
DESIRE TO BE HANDS OFF WITH YOUR PROPERTY
Some rental owners like to be involved with their properties, even doing some of the ongoing maintenance and landscaping. This is not what a corporate client, who wants to have full and complete “quiet enjoyment” of the property, expects. In addition, as mentioned earlier, since the tenant is paying closer to hotel rates, they expect rapid response (2 hours vs 1-2 days for traditional property management) to issues ranging from the urgent like an air conditioner that has gone out to the comfortable like another blanket being delivered. While another blanket may seem trivial or not urgent to a property owner, AvenueWest Arizona knows that an excellent response time to the guest’s needs is what produces happy tenants and thus happy employers. We have the systems, resources and manpower to meet all the guest’s needs in a timely, consistent, and pleasant way.
In closing, we really do it ALL. Secure the tenants, fully manage, inspect, and clean the properties, manage money, security, utilities…in short everything that is needed to ensure a superior experience. We use to say “all you need to do, as an owner of an AvenueWest Arizona fully furnished corporate rental, is go to mail box once a month to cash your check” …now you don’t even need to do that, as every month we direct deposit your proceeds!
So, if your property qualifies, (please see the previous article if this is a question for you), and if you have a tolerance for uneven proceeds but are seeking higher returns, while ensuring your property is well taken care of, with a minimal amount of effort on your part…then Corporate housing IS FOR YOU!!
Call AvenueWest Arizona at 602-753-2412 or contact us.