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%|
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
Traveling to Denver for business? Or perhaps you are relocating and want to try living in a particular neighborhood prior to settling down. Whatever your reason is for coming to beautiful Denver, let the local AvenueWest Managed Corporate Housing office find the perfect fully furnished rental for your needs.
This month, we are featuring a very unique and beautiful all-inclusive property in the heart of downtown Denver, within walking distance to tons of restaurants, coffee shops, boutiques, the Pepsi Center, Denver Performing Arts Complex, the Convention Center, Union Station, Museum of Contemporary Art and so much more!
Bike rentals are right around the corner and the Cherry Creek bike path is at the end of the street. Confluence park is 1/4 mile away.
This 1,600 square foot 2BD/2.5BA downtown Denver town home boasts high-end functionality and features including:
- Main floor is open concept with 11 foot ceilings and floor to ceiling windows
- Maple floors
- Sub Zero refrigerator, Miele dishwasher and oven, and stainless steal countertops
- Master bedroom has a king bed, sitting room and office, private balcony and a large flat screen TV.
- Bathrooms have Kohler fixtures and white stone floors and both have a tub and shower
- Separate laundry room next to 2nd bedroom upstairs
- 2 covered parking spaces in adjoining garage
Along with the great property features included above, all AvenueWest Denver rentals include high-speed wireless internet, expanded basic cable, domestic long distance, capped utilities (gas/electric), water, trash, linens and towels, housewares, and furnishings all for $5,500/month. There is also a one-time, non-refundable departure cleaning fee of $350. Maid Service can be added for an additional fee.
Click here to see more pictures and details of this charming town home or call us 303-825-0000 to reserve this beautiful property today! 🙂
Corporate Housing is Not Part of the Shared Economy and CHBO has the Data to Prove it – CHBO Launches 7th Annual CHBO Corporate Housing Real Estate Survey
As smart investors look to diversify their real estate and investment portfolios more property owners are turning to monthly corporate housing rentals as the best way to adhere to real estate rental laws, minimize time needed to manage a property and maximizing rental income opportunities.
DENVER, Nov. 15th, 2015 – Corporate Housing rentals have been an essential lodging solution for more than half a century and should not be inadvertently lumped into the new trends and restrictions of today’s “shared economy” and CHBO has the data to prove it. For the 7th year CHBO is launching the CHBO Corporate Housing Real Estate Survey to document the trends, standards and needs for this monthly furnished lodging solution.
Successful corporate housing property owners and managers have found that investment and management trends reported in the CHBO Corporate Housing Real Estate Report are essential tools for their financial success. Did you know that 2 out of 3 corporate housing landlords say their tenants stayed on average 3 months or longer? CHBO also found that last year 17% of the properties were rented for a year or longer.
The 7th annual CHBO Corporate Housing Real Estate Survey will provide insights into:
- Pricing trends for monthly, furnished corporate housing
- Average security deposit fees charged by corporate housing landlords
- Required length of stays in the monthly corporate housing rental marketplace
- Pet policies for furnished housing
- Predictions and corporate housing landlords sentiments about the future
The survey is broken into 8 main sections: Property Owners – Who, What, Where, Why and When; Outlook and Profitability; Rental Rates; Property Management Trends; Rental Properties; Tenants; Pets and Marketing Trends.
Independent property owners and managers of corporate housing rentals are invited to complete the survey online. Data is being collected through December 15, 2015 and findings will be reported on January 15th, 2016. The 2015 CHBO Corporate Housing Real Estate Report is offered FREE to all survey participants.
“CHBO Members continue to ask for more facts and figures to make them the most profitable corporate housing providers. The CHBO Team continues to hear from our members about how much this information allows them to make the right choices when it comes to investing in, marketing and managing their corporate housing rentals,” says Kimberly Smith, co-founder and CEO of CHBO.
Real estate investing is back and the trends are showing more real estate growth potential. As smart investors look to diversify their real estate and investment portfolios more property owners are turning to monthly corporate housing rentals as the best way to adhere to real estate rental laws, minimize time needed to manage a property and maximizing rental income opportunities.
The results of this survey will be used to develop the 2015 CHBO Corporate Housing Real Estate Report, which will provide corporate housing landlords, real estate professionals, real estate investors and property managers needed data, emerging trends and insights about everything from how to better promote rental properties, to how to improve the way they furnish and market their rental properties. Historically, responses were received from property owners across the United States and around the world.
About CorporateHousingbyOwner.com (CHBO)
CorporateHousingbyOwner.com is the number one marketplace for furnished corporate housing rentals. CHBO was founded in 2006 out of a need to connect private homeowners and real estate investors offering furnished, short-term rentals with corporate housing seekers such as traveling executives, relocated professionals, traveling nurses, actors, athletes and more. Today CHBO servers the larger Corporate Housing – Extended Stay Lodging market. CHBO also offers individual homeowners and investors tools to manage a corporate housing property themselves as well as help them market their property to a mass audience turning to corporate housing to fulfill their housing needs. Please visit www.CorporateHousingbyOwner.com for more information.
New Owners Grow AvenueWest Denver Managed Corporate Housing Franchise; Growth on New Franchisees’ Minds
Since 2001, Angela Healy worked for AvenueWest Corporate Housing in Denver – helping founders, Kimberly and Eric Smith, manage their financials and run the day-to-day operations. Angela was pivotal in helping AvenueWest grow and find success over the years – including early on in the business when the company took a financial hit in the failing economy. Over the years, Angela helped the Smiths create the AvenueWest Managed Corporate Housing Franchise model and even assisted with the on-boarding of the franchisee team in Colorado Springs.
Along the way, Angela learned that Kimberly and Eric’s long-term plans were to eventually franchise the Denver market.
“When I told Tim [my husband] that AvenueWest Denver was available for purchase as a franchise, he said, ‘Have you ever thought of us buying Denver?’ I’d been working in the business for so long that it made sense that I would be the perfect successor,” says Angela. “The best part was that my husband had always wanted to own a business – so it was truly the right fit for us to do together.”
Kimberly says that Angela was a natural fit to take over the business given her experience and deep corporate housing knowledge.
“Between her strong corporate housing background experience and Tim’s impressive business acumen and entrepreneurial desires, Eric and I knew they were the right team to take over the Denver market,” says Kimberly.
AvenueWest Denver Changes Hands
In 2010, the Healys officially purchased the AvenueWest Denver franchise, thus beginning their journey as corporate housing entrepreneurs.
After taking over AvenueWest Denver, the Healys became iron-focused on their mission: To match those seeking corporate housing in Denver with those offering furnished, short-term rental properties.
“We are lucky to live in Denver as we get to cater to a variety of people in need of corporate housing, from business professionals and traveling consultants to relocating employees, traveling healthcare professionals, on-assignment military personnel, traveling theater companies and more,” says Tim.
The State of Denver’s Corporate Housing Market
Angela and Tim add that Denver is traditionally a high-demand market for corporate housing, and they don’t see that changing anytime soon.
“While we are currently seeing a lot of clients sell their properties because it’s a hot seller’s market, at the same time we are adding new clients who are looking for a competitive advantage when it comes to managing and marketing their unique furnished properties available for rent,” says Angela.
One of the ways Angela and Tim say they maintain steady inventory throughout market fluctuations is by offering great customer service, competitive pricing, unique properties, and win-win partnerships with those who own properties in desirable locations.
“We manage about 30 properties in The Spire (891 14th St. Denver), an upscale condo community in downtown Denver that offers panoramic views of the city and resort-style amenities. We are able to offer these properties to discerning individuals and groups who want to experience Denver’s culture and vibrant downtown scene while traveling to the Mile High City,” says Tim.
Steep Learning Curve
While Tim had little corporate housing experience when he took over AvenueWest Denver in 2011, he says he has since undergone a steep learning curve.
“At first corporate housing was like speaking a foreign language,” he says, “But today it feels like a natural progression in my career and offers me the flexibility I desire to balance my family-life with my professional-life.”
Above all, Tim says that having AvenueWest as the backdrop of their franchise gives them the name recognition and instant trust in the industry.
“Partnering with an award-winning, well-respected name in corporate housing not only brings us high quality referrals, but also helps us solidify relationships with new prospects who have come to know and trust the AvenueWest brand for more than a decade,” says Tim.
Deb Salek, the owner of AvenueWest Northern Colorado, recently had the article “AvenueWest Northern Colorado Offers Turnkey Solutions for Corporate and Transitional Housing” on the Fort Collins Area Chamber of Commerce website:
“With an increased local need for high-quality furnished short-term rentals, AvenueWest Northern Colorado has carved out a niche as a premier provider of full-service corporate and transitional housing in Fort Collins, Loveland, Greeley, Windsor and surrounding communities.
‘AvenueWest offers much more than a hotel stay, but rather a home away from home where you can feel settled and comfortable for your time in the property. We make it as easy as possible for clients. Just bring your suitcase,’ said Deb Salek, AvenueWest Northern Colorado CEO, Broker, and Owner. ‘We provide choices for the traveling professional or relocating individual.’
Todd, as COO and the head of business development, brings his vast experience in sales and customer service to AvenueWest and their clients. Todd, having traveled extensively with his previous career with a Fortune 100 company, fully appreciates the value, convenience and amenities of quality corporate housing.
“Our client companies find that it’s much more convenient to work with one point person to coordinate their business’s short-term furnished housing needs,” said Todd. “They are guaranteed to receive consistent quality and service with every property, and never have to worry about dealing with unknown property owners who may have varying quality standards.”
All AvenueWest properties are move-in ready and feature a full kitchen, fine housewares and furnishings, linens and towels, and other comforts of home. All utilities, phone, cable and internet are already connected when clients move in and are included in one rental payment.
To read the full article, click here. Please visit our website to see all of our beautiful properties located in Fort Collins, Loveland, and Greeley, CO. For more information, contact us directly: 970-797-3099 or via email FortCollins@avenuewest.com.
The Corporate Housing Providers Association (CHPA) has compiled the six most frequently asked questions regarding corporate housing answered by several different corporate housing providers and they have allowed us to post these here:
“While most industries have rebounded and are making strides, the economic downturn created an entire class of new, innovative ventures – the new sharing economy. While local governments and communities continue to struggle with how this new paradigm impacts businesses and communities, business – and global mobility – moves on. Whether you need a ride, someone to care for your pets, or someplace to temporarily stay, how we get what we need, personally and professionally, is changing. In today’s ever-evolving business climate, corporate housing professionals remain a strong resource in the relocation industry.
We asked several corporate housing providers to clarify common questions of guests about what they offer in today’s marketplace…
- The industry average for temporary living is $140 per day. This equates to a $4,200 per month apartment and seems expensive. What comprises the rate?
When seeking quotes for corporate housing, guests are often tempted to compare this lodging option to extended stay hotel rates. While rates may be similar in some markets, they are vastly different in many others. Be sure to analyze that you are comparing like items. Simply comparing daily rate is comparing apples to oranges. Think beyond just a roof and a bed, and include all the items that make a house a home.
Included in the rate are housewares, linens, furniture, electronics, decor and lighting, and a single source for all utilities and customer service oversight. Other common and readily available services are cable television or satellite service, movie options, wireless internet and even local phone service and housekeeping. Corporate housing also includes many upscale amenities and services expected in how we live today as this housing is in a residential setting. Services such as grocery shopping, business centers, fitness centers, car services, and pet-friendly properties are readily available if needed in this temporary space.
When breaking down the cost of corporate housing even further to illustrate how all of the additional costs and expenses are factored into the price of the accommodation, the profit margins are very small and getting smaller as rents continue to increase. Outside of rent, the additional costs can be 50% or more of the total cost.
‘Factoring in all of the housewares and furniture plus the utilities, the net cost is more than double the base rent per month,’ Gavan James, CCHP, President and CEO of Nomad Temporary Housing explains. ‘Finally, they must have staff to administer their business, sell, set-up, clean and service the apartment and factor in vacancy cost for when the apartment is not rented. The net result is ofter a 5% profit margin on that apartment.’
With more square footage, more residential-type amenities, as well as access to all resident functions, corporate housing guests can participate in a community rather than just pass through a transient environment.
2. Why does availability change from day to day?
Availability fluctuations seem mysterious; however, the answer is simple. While there are many options when it comes to hotel choices, availability at apartment communities is at an all-time low across the country. Available inventory is often difficult to locate and once an apartment has been returned to the community, it might not be available to rent again. These communities are looking for long-term renters, so a returned apartment is often immediately re-leased.
‘Units are only offered once the guest gives a formal notice to depart. These notices are received on a daily basis, making those apartments available to the next renter,’ says Jeff Mahoney, Vice President of Global Business Development for Weichert Corporate Housing. ‘It is important to make a timely decision when an apartment is offered, or the apartment may be rented to another guest.’
3. Why can’t we get a volume discount for larger groups such as a summer intern group?
Corporate housing costs for expenses such as rent and utilities are fixed costs. They do not change regardless of the number of units a provider manages at a property. In addition, market forces can make offering discounts difficult, especially in summer months.
‘Apartment rents are higher during the busy summer months. Availability is also at a premium due to higher demand,’ explains Guy Cook, COO of SuiteAmerica. ‘Both of those forces pre-empt flexibility on price, even for large groups.’
Most corporate housing providers agree that given the length of stay and number of accommodations needed, some flexibility may apply. Proper planning and advanced notice can help inform your housing provider so they can review available apartments to offer a creative solution that could save you money.
‘Most companies would like to see their interns have housing at one location,’ says Pam Wade, CCHP, Vice President of Gables Corporate Accommodations and CHPA Chairman of the Board. ‘Strategically, it makes more sense to work with a provider that has inventory in the market the company needs and place the company associates at several locations.’
4. I need a place for a short stay for 30 or 60 days, why should I rent from a corporate housing provider instead of an online host, such as an AirBnB place? They seem cheaper and more hip.
With all the variables that come with relocating, it is often tempting for individuals to use an online marketplace to manage the housing portion of their relocation. As this is how most people are comfortable finding hotel accommodations, using this approach to finding longer-term housing seems like a logical next step. Individual searches for acceptable lodging can be risky and daunting; however, using a corporate housing provider can reduce the stress and liability of trusting strangers.
Corporate housing providers have a great deal of experience in providing everything a relocating individual or family needs. These professionally managed companies have a vested interest in making sure guests have a positive experience as their company’s reputation is at stake. ‘With a Code of Ethics, best practices training and a network of partners to provide a guest with what they need,’ says Samantha Elliott, CCHP, CRP, President of Preferred Corporate Housing, ‘partnering with a professional corporate housing provider alleviates risk.’ Online marketplaces come with more risk.
Security is certainly one of the major concerns for someone new to the area. This includes security of the property as it relates to the location as well as the safety and condition of the property itself. Apartments are zoned for the correct type of occupancy as well as abide by fire and safety codes. When using a personal residence found through an online marketplace, there is no guarantee the accommodation will be safe and secure.
‘Renting a small room in someone’s house or apartment might be fun for a few days,’ say Piper Ayala, CCHP, Vice President of ExecuStay Midwest. ‘But for extended stays, the comfort, convenience and spaciousness of a corporate apartment is a much better fit for corporate travelers.’
As online marketplaces do not monitor or regulate safety compliance for listings, it is the responsibility of the end user to properly assess the safety and condition of listings. This can be very difficult and time-consuming for guests. There are very few resources available that provide background information or inspection history for listing owners and their properties.
With all the variables that come with relocating, finding knowledgeable expertise to ensure a smooth transition is critical to avoiding an expensive ‘bad’ decision. The majority of individual postings on web aggregator sites do not have experienced mobility professionals to help relocate individuals and families globally. Look for professionals that hold designations from various organizations, including ERC certifications, that reflect their dedication and knowledge in the industry.
Just as relying on online marketplaces can be risky, so can expecting to use extended stay hotels for short-term stays. While there may be some availability, they may not be able to accommodate a guest for the duration of their stay.
‘When comparing corporate housing to hotels, keep in mind that hotels may not be able to offer 30 or 60 consecutive days,’ explains Wade. ‘If there are other events going on in a market (sporting events, conventions, etc.), there may already be weeks or weekends booked months in advance.’
5. Typically, the minimum length of stay in corporate housing is often 30 days, based on local and/or legal restrictions. When and why is a shorter length of stay acceptable? What is the maximum length of stay?
Corporate housing is governed at the local level. Many times, local regulations prohibit stays of less than 30 days. Shorter term stays for less than 30 days may be available where it is legal. Your professional corporate housing provider can advise on this issue on a per market basis. Conversely, guests can frequently stay in corporate housing indefinitely depending on availability, allowing for flexibility for extended assignments.
‘We consistently monitor and stay informed on the local laws and legal restrictions as it relates to the minimum stays in our markets,’ says Billy Cochran, Director of Operations for TP Corporate Lodging. ‘While there are frequently minimum stay requirements, guests can often stay in their accommodation as long as it is available and frequently can extend their stays.’
6. Why do I need to give a 30 day notice to depart a temporary apartment? A hotel does not require this.
A notable difference between hotels and corporate housing is the notice to depart. While hotels typically don’t require any type of notice that a guest is leaving, corporate housing typically requires 30 days’ notice. Corporate housing companies manage their inventory by controlling their vacant apartments. Keeping vacancy low allows them to offer competitive rates, keeping the rates reasonable for guests.
‘An extended stay hotel allows guests to depart without notice; however, they would charge significantly more per day for a comparably sized apartment alternative,’ says James. ‘Corporate housing providers ask for a 30 day notice so they have time to re-rent the apartment and avoid a vacancy.’
With more housing options today than ever before, the answers to these questions are critical to a successful temporary stay. Understanding the reality of today’s marketplace will help set expectations and ensure a smooth transition by alleviating stress. One way to do this is to partner with a qualified corporate housing provider for all of your needs.”
Denver, CO – May 20, 2014 – AvenueWest Global Franchise, a leader in the corporate housing industry announced today that they were recognized in Personal Real Estate Investor Magazine’s Annual Top 50 Real Estate Investment Opinion Makers and Market Leaders Awards.
“Personal Real Estate Investor Magazine/PREI as a leading publication for individual real estate investors has a role to identify individuals and service providers who are helping move our industry forward,” stated the PREI editors.
“This is our second year on the list,” commented Kimberly Smith, the CEO of AvenueWest Global Franchise. “We are honored to join this group of respected industry leaders that are working to establish individual residential investment real estate as a reputable and sound investment opportunity.”
We are looking forward to continued help and service for the individual real estate investor. If you are an investor looking for a full service property management company to manage your portfolio of investment real estate, we are located in Atlanta, GA, Boston, MA, Colorado Springs, CO, Denver, CO, Dallas, TX, Fort Collins, CO & Northern Colorado, Phoenix, AZ, and San Francisco, CA. We can match your property with qualified business travelers, corporate housing clients, individuals, insurance claims, athletes, etc. Contact any of our eight locally owned and operated full property management offices that offer fully furnished residential properties.