Gone are the days when corporate housing is limited only to hotels. Nowadays, rental properties that used to offer only long-term tenancies (e.g., apartments) and even vacation rentals are jumping in on the opportunity to provide short-term accommodation to corporate renters.

Because of the intersection of different market segments in the rental housing industry due to the pandemic, it opens an opportunity for various property owners and other industry players to adapt to the new trend.

Since more businesses are now preferring remote work for their employees as part of their social distancing efforts, the need for corporate housing has significantly increased. Furthermore, surveys show that most employees who were introduced to remote work during the pandemic, hope to continue with it indefinitely because of the flexibility that they are enjoying. That is why several owners of apartments, complexes, and condominiums are now evolving to cater to corporate renters.

Corporate Rentals

Corporate Housing sprung up to address the need for stable housing for traveling professionals to live in temporarily. Professionals who move outside the city they live in for contract work, short-term projects, and training looked for fully-furnished hotels or corporate houses.

Even though that remains true, most professionals have more diverse preferences in the type of property based on their needs and interests. Such specific preferences can be satisfied by some apartment and condo communities, which are often conveniently located in areas with easy access to basic commodities and leisure establishments.

Pros

There are a lot of benefits in investing in corporate housing, such as:

• There is a high earning potential. On average, corporate charges 40% higher than the nightly cost in long-term apartment leases.
• There’s more opportunity for landlords to conduct routine checks and maintenance of their units because of the high turnover rate.
• A decreased chance of missed or late payments because the company or booking agent handles the payments
• Short-term rentals are often not subjected to regulations such as occupancy tax, unlike vacation homes.
• Corporate professionals are more likely responsible tenants because they know how to conduct themselves respectably.

Cons

• Marketing the units would be ongoing because the vacancy rate is higher because leases end faster.
• It will increase turnover activity such as tenant screening, move-in & move-out inspections, and cleaning
• The demand for corporate housing could fluctuate depending on the economic state.

These disadvantages are somehow manageable so the risk can be tolerable for some landlords. Residential rental agents may help them deal with those disadvantages. If they use Padleads to publish their listing, it would be less challenging for them to find new tenants, and they are capable of conducting turnover activities.

Wider Potential

Short-term housing can also cater to people who are not corporate professionals or working from home, such as:

• Relocated or reassigned military personnel
• Medical professionals who need to travel for research and special appointments
• Those looking for temporary housing before moving to a property that they will purchase
• Families that need to vacate their homes that are undergoing renovations
• Patients who need to be closer to medical facilities that can provide the treatment they need

The diverse and vast market signifies that short-term corporate housing is a sustainable venture, so it may be a beneficial decision to get in on the trend.