American Express Business Travel gave me a call because their client wanted to know the positive ROI / Return on Investment they would get by having their travelers stay in a corporate housing residential rental vs staying in a hotel.
Great question! Of course there is never a simple answer. I have previously served on the US Advisory Council for ERC / Employee Relocation Council the association for workforce mobility and a study was presented that stated employees who had bad corporate relocations were 50% more likely to get divorced!
As we know, corporate housing is an essential element of a successful corporate relocation. When a company invests in transferring a valuable and talented employee from one market to another the transferee must get to the new city, get settled and be productive at work, as quickly as possible. This is accomplished through immediately having them comfortable in their new local living arrangements and corporate housing provides this. So the question is how do you calculate ROI on this?
If you would rather look at the pennies – let’s choose Downtown Denver as an option.
According to the 2018 Corporate Housing Annual Report by CHPA
1 Bedroom Corporate Housing property = $123.92 per night
2 Bedroom Corporate Housing property = $146.47 per night
3 Bedroom Corporate Housing property = $177.69 per night
I just ran a Google Search for Downtown Denver, CO Hotels and this is what I got:
$149 per night = Embassy Suites – 3.5 Stars
$223 per night = Crawford Hotel – 4.5 Stars
$400 per night = Four Seasons – 5 Stars
In the corporate housing industry we spend a lot of time talking about the “soft” benefits of staying in a corporate housing property, but the reality is the “hard cash” benefits are even greater.
Next time you need a place to stay connect with AvenueWest Managed Corporate Housing 303-825-0000 or search for your next great corporate housing rental to better understand the huge ROI of staying in a corporate housing.
All Corporate Housing Rentals or Corporate Housing Companies are NOT created equal.
When you are a renter you need to know not all corporate housing companies are the same, it is of the utmost importance to ask as many questions as you can think of each and every time. The experienced and quality property owners and managers will be able to address all your questions and concerns with ease.
Rates. What does the monthly rate include? Are there discounts for longer leases? Are there additional fees?
Location. Is there a local office or on-site contact should I require assistance? If there is not a local contact ask how they handle client requests and property issues.
Services. What additional services are provided? For example, is there 24-hour maintenance service or other amenities that will make the stay pleasant?
Accreditation. Is the company a Corporate Housing Providers Association (CHPA) member? CHPA is the trade organization for the corporate housing industry and requires specific levels of professionalism, excellence, customer service, and ethical standards. Ask whether the leasing agents are Certified Corporate Housing Professionals (CCHP). The CCHP certification means that the corporate housing professional has met clear industry standards. These accreditations will enable a relocation manager to distinguish a quality corporate housing agent from the pack.
Experience. What percentage of the corporate housing company’s business is involved in corporate relocations? Finding an experienced provider can be a bonus in this changing marketplace.
Protection. How are the company and its vendors insured? This is especially important to find out when working with management companies that manage properties offered by individual homeowners.
Policies. What is the company’s policy when a guest does not like the property? Does it have other options available to accommodate that guest?
When you are a renter you need to know not all corporate housing rentals are the same, it is of the utmost importance to ask as many questions as you can think of each and every time
Read Reviews: Read every review for a rental very carefully. In our experience, prior tenants are the best possible indicators of what you’re going to find when you and your luggage show up. They will generally give you decent indication of how it will be to live in a place.
Check the Area: Use Google Earth to look at your rental before you commit. The kennel next door or the lively pub downstairs might be bearable for a few days, but after a month, daily annoyances can become infuriating.
Study The Photos: Does the sofa look comfortable in addition to looking fashionable. In the kitchen can you see a stove, microwave and other items you expect especially in international rentals. Use the photos to ask more questions to confirm the details in the property will be what you expect.
Understand Parking & Transportation: If the rental listing does not specific exactly how far public transportation is from the rental, ask before you make the deal. Better yet, get an address for the rental, and you can let Google Maps do the investigation for you. You can actually have a look at the neighborhood and the building before you commit.
Research More: Take no prisoners on this issue if you depend on the Internet. When you begin to negotiate with an owner or representative, ask about Internet strength and let them know that this is a potential deal breaker. If you expect a strong, consistent broad band connection which will allow you to use Skype and stream entertainment without a hassle, tell them so right up front! In several cases during our home free life, we have been forced to make major demands once we have landed and discovered that we didn’t have a decent connection.
Corporate housing has come a long way in the past four decades and continues to evolve into a popular lodging solution for travelers of all walks of life. Change tends to breed misconceptions, so it has never been more important for renters to stay apprised and knowledgeable about the corporate housing industry. And even though the corporate housing industry has and likely will continue to change, you can count on one thing staying the same: corporate housing always has and will continue to provide short-term furnished housing to individuals and business executives who need a place to call home, even if only for a short while.
Managed Corporate Housing = AvenueWest
By Owner = CHBO
Corporate Housing Providers Association = CHPA
Take a look – New interview with Jack and Jill at https://mightygoods.com/jack-and-jill-travel/
The online Magazine, SheKnows, compiled a list of their favorite travel blogs. We are Going to be featuring and breaking down their top 10 travel blogs:
AlmostFearless This blog is written and compiled by Christine Gilbert. She talks about her travels with her husband Drew, 2 1/2 year old son Cole, and baby #2 is coming soon. They travel to some pretty amazing countries, take some pretty amazing photos, and eat some delicious food. They are making a documentary, Christine is writing a book, and her husband is creating art along their incredible journey.
SoManyPlaces This blog is an amazing story about a husband and wife duo who both quit their jobs and sold everything in May 2012 to travel around the world. Wow! They are truly inspiring!
DangerousBusiness Follow Amanda as she travels all over while also giving travel advice, tips, guides, reviews, personal travel…
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Atlanta Housing Special!
2 Bedroom Townhome in Vinings – Atlanta, Georgia
Close to Cumberland Mall and Dobbins Air Reserve Base – This 2200 sqr feet 3-story Brownstone executive townhome in Vinings Overlook has beautiful finishes and is professionally decorated. The first 2 levels have hardwood floors. The home has plenty of windows with plantation shutters that can be adjusted to let in lots of light. On the main level there is an office, half bathroom, and a large 2 car garage. The second level has the living room, dining area, kitchen and another half bathroom.
The kitchen features custom cabinets, granite countertops, stainless steel appliances and an extended counter with four counter-height stools. The natural wood dining table seats 6. The living area has leather seating, a gas fireplace, a large wall-mounted flat screen TV and a sound system with built-in speakers. Off the kitchen, there is a private balcony with table, chairs and outdoor grill. the 3rd level has two bedrooms, both with private en-suite bathrooms. There is also a laundry room on this level. Both bathrooms have custom cabinets and granite countertops. The master bedroom has a king bed and flat screen TV. The master bathroom has 2 sinks, a soaking tub and a separate stand-up shower. The second bedroom has two twin beds and lots of play space. Its en-suite bathroom has a shower/tub combo. Both bedrooms have large walk-in closets. This is a pet-free, no smoking property.
This home is conveniently located near the I-75 and I-285 (Perimeter highway). It is close to Cumberland Mall, Cobb Galleria, the new Atlanta Braves stadium (Suntrust Park) and Dobbins Air Reserve Base. There is plenty fine shopping, dining, entertainment and arts and recreation very nearby.
Call now to speak with a Property Specialist: (404) 618-4665
Or Click Here Complete a Housing Request Form
This month’s blog was contributed by another fine member of the Corporate Housing Provider’s Association (CHPA) and one of our Australian counter-parts, Corporate Keys, written by Chelsey Moter, Outreach Coordinator.*
The days when college students would automatically live on campus are now over. More and more colleges these days do not offer student housing, and many students are opting to source their own accommodations and live off-campus alone or with other fellow millennial students.
On-campus accommodation vs off-campus accommodation
The biggest decision students usually make when leaving home for their studies is whether to live on-campus, if their colleges provide this option, or off-campus.
On-campus housing does come with some benefits. Students obviously have easier access to the venues of their classes and school activities, and can walk to class from their rooms.
Leases tend to be more flexible and can be cancelled if the student leaves the school. Financial aid may be available to those students who have difficulty paying rent. Campus security and professional housing staff can help students resolve problems and offer an added layer of security.
But surely the biggest advantage, to many students, is being able to live with others like them and participate more intimately in community life on campus.
On the other hand, living off-campus is more attractive from the standpoint of comfort and privacy.
Students can opt to live alone or with friends of their choosing, and they also benefit from having their own private amenities such as kitchens, bathrooms and living rooms.
They are not constrained by the rules to which students living on-campus must submit, and have a wider range of lifestyle choices available to them.
Serviced apartments vs hotels, hostels and Airbnb
Serviced apartments are a unique breed of accommodations which can offer a great alternative to students who wish to live off-campus.
Serviced apartments are fully-furnished and come with certain services and amenities that are usually associated with hotels, including room service, laundry services and fitness centers. This makes them much more convenient than Airbnb apartments, in which guests are usually expected to clean up after themselves.
In addition to these conveniences, they also come with all the advantages of non-serviced apartments, such as full private kitchens and washing machines. These are usually not available in hotels or hostels.
Serviced apartments thus offer the perfect blend of the conveniences and facilities offered by both hotels and private apartments.
Why are serviced apartments perfect for students?
Given the benefits of serviced apartments, they can be an excellent form of accommodation for students.
One of the biggest advantages is the convenience of amenities like room service, which frees up students’ time and energy so that they can concentrate on their studies. Free Internet is another benefit that can save students from having to apply, pay for and set up their own connections.
As spaces and equipment are not shared in a serviced apartment, students can enjoy the privacy of having their own homes. Serviced apartments offer a much quieter and more conducive environment for study than student housing, and students even have the option of converting part of their living area into a private study room if they wish.
Serviced apartments do not require residents to commit to long-term leases, and are thus perfect for students who intend to move out when they are done with their studies.
Serviced apartments can enhance a student’s life considerably. As most serviced apartments are centrally located, they enable students to benefit from proximity to the city center, where they can easily access restaurants, cinemas, and other nightlife. The amenities at serviced apartments are designed to make life convenient and fuss-free, enabling students to clear up time that would otherwise be spent doing housework.
*Edited by Janine Low, Marketing, Training and Operations Executive, AvenueWest Global Franchise
A major player in the corporate housing space, Bridgestreet, just launched their brand new site which has the potential to offer instant booking – something that has since been obsolete in the corporate housing sector. The corporate housing industry has been avoiding this technology shift for quite some time since it takes away the qualities and values we strive for: outstanding customer service and satisfaction, attention to detail, and quality control. According to Skift Megatrends 2017, corporate travel is shifting with all of the changes in leisure travel, causing business travelers to expect more instant booking tools and intuitive management portals.
Sites like AirBNB, HomeAway, Expedia, Booking.com, etc. all have the capacity to allow instant bookings which ultimately gives the consumer access to more lodging choices on the extended stay spectrum:
- Hotel Room: An open room with generally a king sized bed or 2 double beds, usually with a desk space, dresser, closet and a separate full bathroom. Ideally for short-term stays of 1-2 nights.
- Hotel Suite: A larger hotel room usually with a separate bedroom and bathroom, living area with desk, mini fridge, microwave, and coffee maker. Ideally for short-term stays of 1-5 nights.
- Extended Stay Hotel: An extended stay hotel room has all of the hotel suite but also offers a kitchen and dining area including pots, pans, dishes, silverware, and other very basic kitchen necessities. Typical extended stay rooms are designed for stays of 3-7 days though they can be utilized for longer stays as well.
- Corporate Housing: A fully furnished apartment with a full-size kitchen, all appliances, and a minimum of 60+ household items. Most apartments also offer on site amenities such as fitness centers, business centers, pools, etc. Offered for 30+ day stays.
- By Owner: A privately owned property either managed by the property owner or a property manager. The By Owner segment on the lodging spectrum offers a variety of different types of property options from condos to single family residences. Think AirBNB or Home Away – individual property owners don’t necessarily understand the corporate housing industry and might not offer full kitchens, housewares, or amenities like a traditional corporate housing apartment does or a CHBO Complete or Managed Corporate Housing property offers. Depending on where the property is located, there will be different requirements for the minimum length of stay required.
- CHBO Complete: A privately owned property (condo, loft, town home, house, etc.) either managed directly by the property owner or a property management company listed on CorporateHousingByOwner.com (CHBO) that follows all of the requirements set forth by the Corporate Housing Providers Association (CHPA). Usually offered for 30+ day stays but shorter term stays might be permitted depending on where the property is located.
- Managed Corporate Housing: A privately owned property (condo, loft, town home, house, etc.) managed by a licensed residential real estate property management brokerage following the minimum standards set forth by the CHPA and rented out fully furnished for 30+ day stays.
Ultimately, creating one platform that will allow consumers to choose the type of lodging they want for their specific needs would be the best solution, especially since there are very different types available. However, getting all online travel agencies, corporate housing providers, and private owners on one booking platform will most likely never be a reality.
The corporate housing industry is a service based industry, priding itself with superior customer service which is not readily available with instant booking. Today’s consumer still needs to be educated about their lodging choice and how one might be a better fit for their needs than another. This can only be done with person to person interaction. Sure, technology can provide today’s consumers with answers right at their fingertips but at what cost? As Millennials age and start taking over the majority of business travel in the next 5-10 years, how is this going to impact the various industries supporting lodging choice? How can we all work together to provide a seamless booking experience for the new generation? These are all questions that keep us up at night in the corporate housing arena and we as an industry are actively working to continuously improve our standards and offerings not only here in the United States, but Globally as well.
In a recent Zillow article by Amie Fisher “5 Rental Market Predictions: What to Expect in 2017 (and Beyond),” Zillow’s Senior Economist, Dr. Skylar Olsen, predicts 5 rental trends for 2017:
- Overall Rental rate appreciation will stabilize this year. While the overall United States rental rate appreciation is staying around 1.5%, many West Coast metropolitan cities (Seattle, Portland, San Francisco and surrounding Bay Area, San Diego and Denver) won’t see their rental rate appreciation yet below 5%. Overall, there is more rental inventory available which is a large contributing factor to rental rates slowing down.
According to Apartment List, Inc. and their February 2017 rent report, rents increased slightly this month nationwide after four months of rental rate decreases. In 2016, the rental rate was significantly lower and did level off from the dramatic increases in 2014 and 2015.
2. Homeownership Rate will increase slowly as Millennial’s get older. Many people have shifted to renting instead of buying since 2006. But, as Millennial’s get older and make more money, they feel that buying a home is an integral part of their personal freedom. Don’t worry, this shift is going to be gradual and over time so rental vacancies should not be affected yet.
3. Many renters are now being pushed to the suburbs. The Baby Boomers are looking to downsize from their larger homes, perhaps in the suburbs, and move to smaller homes in more walk-able neighborhoods. As a result, there is less inventory available in the urban areas and higher rental rates since there is not enough supply to meet the demand. More people are now looking to surrounding cities and suburbs to find lower rents and more options. Because of this shift, some of the fastest growing rental rates in the nation are in smaller cities and suburbs outside of the Nation’s most expensive metropolises.
4. New home costs will increase due to rising construction costs. Most new home builders are moving their focus on high-end homes since the cost of construction and land is on the rise. This means that more people will still be forced to rent since the average person will not be able to afford the new home prices currently being offered.
Source: The Zillow Group Report
5. Interests rates will increase. Over the past couple of months, interests rates have already begun to increase due to the change in administration. If they continue to rise over the course of this year, individuals and families who might have been considering buying will instead remain in rentals until the rates go back down.
Overall, the cost of rent has started to mellow out a bit but there are still some major factors that are playing into the current rental market nationwide and why we most likely won’t be seeing any major decreases anytime soon.
Luckily, the majority of all AvenueWest Managed Corporate Housing‘s rental properties aren’t affected by the major rental rate hikes impacting apartment communities since our properties are privately owned. Rent like a local in one of our beautifully furnished or unfurnished properties. Call us today 1-800-928-1592.
Here are the nation’s 100 largest markets and their median rental rates and percent changes from Apartment Source, Inc.:
|City||Median 1BD||Median 2BD||M/M Price Change||Y/Y Price Change|
|San Francisco, CA||$3,420||$4,610||0.6%||-1.5%|
|New York, NY||$3,220||$4,110||-0.1%||1.0%|
|Jersey City, NJ||$2,540||$2,900||1.2%||2.1%|
|Los Angeles, CA||$1,870||$2,600||-0.1%||0.5%|
|San Jose, CA||$2,110||$2,600||0.3%||-1.4%|
|San Diego, CA||$1,530||$2,000||0.1%||1.9%|
|Long Beach, CA||$1,390||$2,000||0.8%||6.1%|
|Santa Ana, CA||$1,550||$1,870||0.8%||-1.5%|
|Fort Lauderdale, FL||$1,300||$1,700||-0.3%||2.2%|
|New Orleans, LA||$1,400||$1,600||0.0%||1.0%|
|St. Petersburg, FL||$890||$1,300||0.7%||2.4%|
|St. Paul, MN||$950||$1,200||0.6%||3.0%|
|Fort Worth, TX||$950||$1,170||0.3%||2.8%|
|Virginia Beach, VA||$900||$1,150||0.1%||3.2%|
|Corpus Christi, TX||$830||$1,020||-0.2%||-0.3%|
|San Antonio, TX||$850||$1,010||-0.2%||0.3%|
|St. Louis, MO||$830||$1,000||0.8%||0.5%|
|Colorado Springs, CO||$810||$1,000||-0.3%||4.9%|
|Baton Rouge, LA||$990||$1,000||0.4%||2.6%|
|Salt Lake City, UT||$790||$990||-0.2%||1.5%|
|Las Vegas, NV||$830||$980||0.1%||4.7%|
|San Bernardino, CA||$750||$950||0.1%||0.5%|
|Grand Rapids, MI||$810||$940||-0.1%||1.5%|
|Kansas City, MO||$780||$850||-0.6%||-0.9%|
|Des Moines, IA||$880||$840||0.1%||-2.5%|
|El Paso, TX||$620||$800||0.1%||0.6%|
|Little Rock, AR||$690||$800||0.6%||3.8%|
|Oklahoma City, OK||$650||$780||-0.2%||2.2%|
|Fort Wayne, IN||$490||$600||-0.9%||0.7%|
In the January 2017 addition of Mobility Magazine, Michael Krasman, the CEO and Co-Founder of Urbanbound, which provides relocation management software, discusses the 3 main data metrics that companies should be using to identify whether or not their relocation program is successful.
Cost Metrics. What is the actual cost of the employee’s relocation not the total cost of the entire relocation program. A company should understand the break down of their annual relocation budget based on each individual employee’s policy, assignment location, length of stay, etc.
Valuable Supplier Network Data. Using metrics to compare your vendors in terms of cost, employee satisfaction, and regions served will create company benchmarks that will determine which suppliers remain in a company’s supply chain moving forward.
Employee Insights. The overall success of any company’s relocation program can be directly tied to their employees’ performance at work. If an employee is satisfied with their relocation, then their quality of work should not be affected. Every company should track their retention and turn over rates: how long are the relocated employees staying with the company during and/or after their assignement(s)? Were they satisfied with the suppliers used and services provided during their relocation? What challenges did they face? These are crucial insights that will help any company make any necessary changes to their relocation programs moving forward and share this information with their future transferees.
Tracking key data metrics relating to a company’s relocation program will dramatically improve the overall success of the program and in turn, the satisfaction, retention, and performance of each transferred employee. After all, a happy employee is a productive employee.
Millennials are a hot topic right now and have been for the past couple of years with the changing landscape revolving around Millennials in the workforce, talent management, and mobility.
In the November/December 2016 addition of Workforce Magazine, in the article titled “Mobility Needs a Makeover,” Millennials are recognized as great candidates for global assignments since their relocation packages typically cost less than the “older, more encumbered peers.” According to George Bates, the Senior Vice President of Global Marketing and Sales for Graebel:
…Today’s businesses have a lot of reasons for relocating employees, and many of them have figured out that younger staff don’t need the same level of support…Younger employees are more open to the adventure that comes with an oversees assignment, and are often willing to voluntarily go with few if any additional perks. ‘They are young and hungry and eager to learn about a new culture.’ Inviting young, highly skilled employees to voluntarily relocate for a challenging work assignment has been a growing trend…for the past few years…It’s one of the many strategies mobility experts are using to cut the cost and complexity of relocation assignments, while adding value for employees. ‘There is a pervasive assumption among this generation that if they want a strong career, they need this kind of experience.’
According to a study compiled by Brookfield Global Relocation Services, 11% of the employees taking relo assignments are ages 20-29 and when mobility and talent management are combined, the number increases to 22%. Companies are really focusing on getting younger employees into their global leadership roles.
The relocation industry is shifting because of this growing trend of sending younger employees on assignments. More relocation packages are being offered now based on the needs of the company and the value of the employee. Younger employees are also typically easier to relocate since they don’t usually have kids and families to relocate, and since most Millennials rent instead of own, no property managers to find. Millennials are craving these experiences and in exchange, aren’t necessarily looking for higher salaries and benefits to accompany their relocations.
Temporary housing is a large portion of relocation services. According to the 2014 Gen-Y Housing Survey conducted by the Urban Land Institute and UDR, there were some very interesting findings regarding what Millennials are looking for in their accommodations:
These figures represent what Millennial respondents chose in regards to housing. It is from the 2014 Gen Y and Housing Survey compiled by the Urban Land Institute and UDR.
So which cities are millennials relocating to here in the United States?
- Atlanta, GA
- Pittsburg, PA
- Memphis, TN
- Boston, MA
- Austin, TX
- San Diego, CA
- Seattle, WA
- Houston, TX
- Denver, CO
- Charlotte, NC
Good news, we have full-service, local offices in 4 out of these 10 cities and can assist our millennials with short-term, fully furnished temporary housing while they get settled into their new city. All of our properties include the features that are important to the Millennial respondents and even more!
For all of your relocation needs, your local AvenueWest Managed Corporate Housing office is at your service, providing exclusive residential properties including single-family homes, town homes, condos, and apartments. All offices are licensed real estate brokerages and can help you find your perfect home once you are settled. Most of our offices can also help with unfurnished rentals as well.
We are local and know the cities and neighborhoods our properties are located. Plus, we have properties not just in major cities, but in the surrounding suburbs as well.
Submit a housing request, Search for a Real Property in our actual database, or give us a call today 1-800-928-1592 and a local representative will be able to answer all of your questions. You can also Message us on Facebook or Tweet us on Twitter