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.
Whatever the reason for coming to Phoenix this fall, AvenueWest Phoenix has beautiful, exclusive properties that will meet your furnished temporary housing needs. Check out their most recent addition:
This 1BD/1.5BA single story family home offers 1,400 square feet, a 2 car garage plus 2 additional covered parking spots, access to the adjacent horse facility, upscale finishes, and a washer/dryer.
Contact AvenueWest Phoenix for more information and to book this fabulous property: 602.753.2412 or Phoenix@avenuewest.com.
**Additional terms and conditions for AvenueWest Phoenix properties:
All properties require a one-time $250 non-refundable cleaning fee. If pets are permitted, a one-time, non-refundable pet fee of $300/per pet is required. In lieu of a refundable security deposit, we offer an Accidental Rental Damage Insurance for $69 every 90 days which covers renters up to $3,000 worth of damages for every 90 days in the unit. Otherwise, a refundable security deposit equal to one month rent is required. Rental tax does apply in all of our units – Scottsdale is 1.65% and Phoenix is 2%. Minimum lease term of 30 days required. All housewares, linens, towels, expanded basic cable (Premium channels can be made available for an additional cost), high speed wireless internet, water, sewage, and electric/gas (capped) are included in the monthly rental rate. We offer additional services, like maid service, for an additional fee. Full, non-refundable 30-day monthly rent payable in advance of move in. Non-refundable if tenant does not move in, although we will refund if we are able to re-rent the unit.
There are so many fun-filled outdoor activities to do in Cambridge, MA. If you are planning on staying here this year, whether for business or pleasure, make sure to check out all of theses exciting outdoor activities in the nearby area. Here are the best five:
The Freedom Trail
The Freedom Trail, running throughout downtown Boston, is a must-see. Be sure to visit Paul Revere’s House, Boston Common and the Bunker Hill Monument. You will also be taken through some of Boston’s most exciting areas such as Faneuil Hall and Government Center, both featuring tons of local eateries, outdoor parks and great souvenir shopping.
Kayaking on the Charles River
See spectacualar views of the city of Boston while enjoying the beauty of the Charles River. Get a firsthand view of the river by renting a kayak or a canoe. Charles River Kayak & Canoe is located right in Kendal Square.
Harvard Square is a bustling intersection filled with great restaurants, shopping, and outdoor eating areas. Plus, Harvard University is one of the oldest and most prestigious universities in the world. The university has acres of beautiful grounds and rows of historic buildings and museums including the Harvard Museum of Natural History and the Harvard Art Museum.
The Esplanade is one of Boston’s most famous parks featuring stunning views of the Charles River and the city as a whole. Pack a lunch and you’ll have the ultimate summer afternoon enjoying the great views and wonders of Esplanade Park.
The Minutemen Bikeway
Starting in Bedford, MA and running all the way down to Cambridge, the Minutemen Bikeway features endless discoveries. This historic landmark takes you on a tour of where the American Revolution began. Visitors can rent a bike in multiple places along the trail using Hubway, a cheap service that rents out bikes all over the city.
If adventure is your thing, you can definitely get out for some great exercise, dine on some great local food, or casually take in the sights. There are so many great things to do here in the “City of Squares.” So get out and enjoy the sites!
This article has been provided courtesy of CorporateStay. They offers short term or long term furnished apartments and rentals throughout the Metro Boston area, including Cambridge, Harvard Square, Davis Square, Porter Square, Kendall Square and more! If you are staying for business, school, or pleasure, CorporateStay has exactly what you need to stay comfortably.
DENVER, Aug. 4, 2015 – AvenueWest Corporate Housing, a trusted name in Denver’s corporate housing market for almost 15 years, today announces that demand for corporate housing in Denver remains high despite the hot seller’s market.
“While we are currently seeing a lot of clients sell their properties to take advantage of the seller’s market, we also are seeing high demand for corporate housing,” says Angela Healy, co-owner of AvenueWest Corporate Housing in Denver. “I believe a real opportunity exists for individual homeowners to earn residual income by offering their furnished homes to our high-end corporate housing clientele.”
Tim Healy, who co-owns the AvenueWest Denver franchise with his wife, Angela, adds that demand for corporate housing in Denver remains high because business travelers, traveling healthcare professionals, traveling theater performers and on-assignment military professionals continue to visit and do business in Denver.
“Each of these groups of people require short-term furnished housing during their temporary stays in Denver,” says Tim Healy. “Our goal is to continue to add high-quality properties to our roster so we can meet the needs of these discerning visitors.”
The Healys say they remain iron-focused on their mission to match those seeking corporate housing in Denver with those offering furnished, short-term rental properties.
“We manage about 30 properties at 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 offer these properties to individuals and groups who want to experience Denver’s culture and vibrant downtown scene during their visits,” adds Tim Healy. “The beauty of owning multiple units in one building is that we are able to house groups of people in one location so they can experience Denver together yet have their own private temporary living quarters.”
AvenueWest Corporate Housing is an award-winning name in corporate housing. For more information, visit www.avenuewestfranchise.com
About AvenueWest Corporate Housing – Denver
AvenueWest Corporate Housing in Denver provides unparalleled service and exclusive furnished corporate housing properties available for rent in the Denver metro area, including LODO, South Denver, the Denver Tech Center (DTC), and Broomfield. Angela and Tim Healy purchased the rights to franchise AvenueWest in Denver from Kimberly and Eric Smith, who continue to own and manage AvenueWest Global Franchise. Visit http://denver.avenuewest.com for more information.
For six years, Meghan Hartman’s career was in flux. The Global Financial Crisis ravaged the real estate industry, and Hartman, a former real estate agent, was looking to reinvent herself. Enter AvenueWest Managed Corporate Housing in 2013, and an opportunity to own a local office in Phoenix, AZ.
Ready to take charge of her career, Hartman jumped on this new business venture, with encouragement from her long-time confidant, Mark Vost, who today helps Hartman run the company’s day-to-day operations.
“As I unraveled the AvenueWest brand, I could see what a great fit it was for Meghan, and how her real estate skill-set would be an asset to her running a business like this,” says Vost.
Today, AvenueWest Corporate Housing in Phoenix is a thriving business that not only provides property management services to owners of furnished homes being offered for rent, but also provides high quality, short-term rental properties to those in need of temporary housing. Hartman says her ideal clients include traveling business executives, visiting medical professionals, and insurance companies in need of furnished homes for their displaced clients.
Hartman says AvenueWest Phoenix has experienced steady growth from the start, enabling her to manage seasonal swings.
“Phoenix’s rental season is busy in the winter and quiet in the summer, which can at times be overwhelming or underwhelming,” says Hartman. “We are committed to working hard year round to forge new relationships that strengthen our business so we can persevere through dramatic seasonal swings.”
Hartman says she created a medical professionals division to cater to the ongoing corporate housing needs of visiting medical professionals to Phoenix. “This has provided us with a steady stream of business no matter the season,” she says.
The backbone of AvenueWest Phoenix though, says Hartman, is the AvenueWest business model and corporate support team.
“We would not be able to do corporate housing without AvenueWest. The brand brings instant recognition and respect, not to mention a great deal of leads. We cannot give enough credit to AvenueWest’s global team and concept,” says Vost.
About AvenueWest Phoenix
AvenueWest Phoenix provides unparalleled service and exclusive furnished corporate housing properties available for rent in Paradise Valley, the Biltmore area, Downtown Phoenix, Midtown Phoenix, Scottsdale, Tempe, the Warehouse District, Central Avenue, Camelback Corridor, and Arcadia. Visit http://phoenix.avenuewest.com for more information or give us a call today – 602.753.2412.
Chicago is a very large city, with a significant population of residents, businesses and rental properties. If you’re in the process of deciding to rent out your property, you must ensure that you comply with the city’s laws and ordinances governing what you (and your tenants) can and cannot do. It’s also important to understand that the rules applying to renters who choose to rent furnished apartments don’t necessarily apply to extended stay properties.
If you’re a residential landlord (you’re renting residential property to tenants), then you’re governed by the Chicago Residential Landlord Tenant Ordinance, or RLTO. This ordinance does not govern the following types of properties and situations:
- Owner-occupied buildings with six or fewer units
- Rooming houses, hotels and motels unless rent is monthly and occupancy is 32 days or more
- Employee quarters
- Dorms and shelters for students
- Nonresidential properties
- Owner-occupied condos
- Owner-occupied co-ops
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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.”