Last week 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 corporate housing vs staying in a hotel.
Great question! Of course there is never a simple answer. A year ago I served on the US Advisory Council for ERC / Employee Relocation Council the association for workforce mobility and a current study was presented that stated employees who had bad corporate relocations we 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 as quickly as possible and become productive. 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?
So if you would rather look at the pennies – let’s choose Downtown Denver as an option.
According to the 2013 Corporate Housing Annual Report
1 Bedroom Corporate Housing property = $99.78 per night
2 Bedroom Corporate Housing property = $117.52 per night
3 Bedroom Corporate Housing property = $135.40 per night
I just ran a Google Search for Downtown Denver Hotels and this is what I got:
$113 per night = 3 Star, Embassy Suites
$160 per night = 4 Star, Oxford Hotel
$325 pre night = 5 Star, Four Seasons
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 call you local corporate housing provider to better understand the huge ROI of staying in a corporate housing rental.
While many professionals believe that all corporate housing companies and leasing agents are the same, the truth is that there are unique differences between the three popular types of corporate housing companies.
First, there are “service companies” which rent apartments, furnish and equip them, then offer the apartments as corporate housing rentals.
Second, there are “apartment companies,” which own or manage apartment complexes and may use some of their inventory as furnished corporate housing.
Third, there are “management companies,” which are real estate property management companies that manage properties owned and furnished by individual investors.
A relocated executive with a family and/or pet would probably prefer a unique home in a neighborhood setting, whereas a company may need 20 of the same units located within one apartment complex.
Each type of corporate housing company offers different services and amenities. Asking the right questions of your leasing agent will ensure a more pleasant experience for all:
Rates. What does the monthly rate include? Are there additional fees? Is a discounted rate for signing a longer lease possible? These questions will help a guest enter into a lease agreement with more knowledge and confidence.
Location. Is there a local office or on-site contact should the guest require assistance? If the company does not have a local office, ask how the company handles client requests and property issues.
Services. Is there a 24-hour maintenance service or other property amenities that will make the stay more pleasant?
Accreditation. Is the company a Corporate Housing Providers Association (CHPA) member? CHPA is the trade organization for the industry and requires specific levels of professionalism, excellence, customer service, and etichal standards. Ask whether the leasing agents are Certified Corporate Housing Professionals (CCHP). The CCHP certification means that the corporate housing professional has met 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? Will they offer other available options to accommodate that guest?
Because not all corporate housing management companies and agents are the same, it is important to ask as many questions as you can think of every time. The experienced and quality companies will be able to address all your questions and concerns with ease.