How To Rent Your Home To Insurance Companies With the resurgence of corporate travel and the return of employees to offices, short-term corporate housing is in high demand. If you’re considering renting your house for corporate housing, now is an opportune time to explore this venture. Let’s begin with the fundamentals: What exactly is corporate housing?
Corporate housing typically involves businesses renting apartments or homes to accommodate their employees for a specific period. However, these rentals aren’t your standard arrangements. Corporate housing units are typically fully furnished, serviced, and designed for flexible stays. This presents an attractive opportunity for property owners, whether you own a single property, an entire apartment building, or multiple homes, to tap into this burgeoning housing market.
Advantages of Corporate Housing
One of the primary benefits is the ability to charge higher rental fees. Landlords can justify increased rent rates because businesses often specify their unique requirements for corporate housing, which include:
- Full furnishing to high standards.
- Inclusion of all necessary appliances, utilities, and amenities.
- Creation of a welcoming atmosphere through artwork and design.
- Ongoing communication with the company’s HR team and tenants.
- Inclusion of maintenance and cleaning services.
- Provision of additional premium options, if necessary.
Due to these stringent requirements, property managers can typically price their units at 2 to 3 times the typical market rate, or even higher. Despite the initial investment needed to meet these corporate housing standards, landlords can significantly boost their rental income. Furthermore, dealing exclusively with businesses, as opposed to individual tenants, can simplify property management by reducing the likelihood of complaints and other potential issues. By partnering with a specific company, you may secure premium rents as they ensure consistent accommodations for incoming employees and their families.
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Preparing Your Property
Depending on the business you collaborate with, your property may require specific features to align with the company’s housing needs. These may include:
- A fully stocked kitchen with food and beverages.
- Toiletries and household supplies.
- Cleaning services.
- TV and internet connectivity.
- Brand-name appliances.
For properties catering to high-profile residents like executives or management personnel, luxury amenities and services might be necessary, such as:
- Car or transportation options.
- Security personnel or doorpersons (for apartments).
- Package and mail delivery services.
- Frequent cleaning or on-site staff.
- Private chef or food delivery.
While outfitting your property with such services demands a more substantial investment, it allows you to command premium rental rates, thereby enhancing your profitability.
A Step-by-Step Process
If you’ve made the decision to rent your house for corporate housing, the following step-by-step process can guide you in attracting the right businesses and preparing your home for corporate tenants.
1. Identify Your Target Businesses and Market Your Property
Before engaging with corporate housing companies, ascertain which businesses in your area require housing and decide whether you wish to market your property directly to these companies or through third-party providers. Here’s how to get started:
- Draft letters to the HR departments of major businesses in your area. You can identify these businesses through platforms like LinkedIn and send direct messages to their HR teams.
- Research major insurance companies in your vicinity that specialize in home, flood, fire, earthquake, and other property insurance.
- Reach out to these businesses through both direct contact and online communication.
While this process may seem labor-intensive, especially if your area has only a few major businesses, it is an essential initial step for those planning to market their property directly to businesses. Alternatively, you can save time by collaborating with third-party companies that handle property management and marketing on your behalf.
2. Familiarize Yourself with Your Partners
If you opt to manage everything independently, take the time to understand your prospective partners. Ask pertinent questions such as:
- Will the company rent the property for short-term or long-term periods?
- Does the rental agreement cover vacant periods?
- How frequently does the company expect tenants?
- What are the property’s specific requirements, and who bears the costs of alterations?
- Are additional services needed?
- Will there be construction expenses?
Ideally, you’ll engage with a company committed to consistently renting your property, providing you with a list of necessary alterations to proceed with the lease. Ensure clarity regarding who covers the costs of these modifications and upgrades. While many companies may require you to finance these adjustments personally, certain providers, like Zeus Living, handle these expenses for you.
3. Agree on Alterations and Negotiate a Price
Once you’ve identified a corporate client and understood the upgrades required, it’s time to finalize the rental price. Calculate the following:
- Total construction costs.
- Expenses related to furniture and amenity upgrades.
- Monthly projections for additional services.
- Add a premium to cover these costs and services.
Traditionally, apartment rentals amount to about 1% of the home’s value per month. For corporate housing, this rate should be at least 2-3%, increasing with the level of luxury amenities and items available.
4. Welcome New Tenants and Maintain the Relationship
After settling on the rent and drafting the contract with your corporate client, you can commence welcoming new tenants. During this phase, maintaining communication with both tenants and your HR representative is crucial. Especially in the initial stages, attentiveness to feedback is essential to avoid potential issues that might lead to losing your client or tenant due to communication gaps.
While renting your property for corporate housing can yield significant income, it necessitates a substantial investment and entails certain risks. To streamline the process, property management services, like those offered by Zeus Living, handle the work on your behalf, allowing you to focus on collecting rent.