Airbnb RentalsInvestment StrategiesAre Corporate Rentals a Good Real Estate Investment Strategy? by Ahmad Shukri May 13, 2018January 27, 2019 by Ahmad Shukri May 13, 2018January 27, 2019According to the Corporate Housing Providers Association, corporate housing earned a revenue of $2.36 billion in 2009 and $2.47 billion in 2010. Corporate rentals have had a significant growth similar to other segments of the real estate industry in the past 20 years. Investing in corporate housing is a widely popular real estate investment strategy that is a low risk investment for the real estate investor.So, what are corporate rentals?Corporate rentals are usually defined by renting out units, apartments, and condos to individuals or corporates. It is considered an alternative to extended hotel stays. The main attraction of corporate housing is the large square footage and the ability to extend the stay. Corporations are exploring this option more in lieu of hotel accommodation.Related: What are Corporate Rentals and Should You Invest in Them?What makes corporate rentals a viable option for real estate investors?Corporate housing is a part of the real estate industry. Any real estate investor would want a part of the corporate rental business; here we will explore the aspects of corporate rentals that appeal to real estate investors and how you can maximize your profit through them:The optimal rental strategy to yield more revenueCorporate rentals are somewhat versatile and flexible. Finding the optimal rental strategy can be done through reviewing the demand in the area on such investment properties, as well as reviewing your property’s aspects and occupancy abilities. Whether short-term rentals or long-term rentals, corporates looking to lease corporate housing are looking for a professional individual to fulfill such a service. In return, rental income for real estate investors tends to be higher than others dealing with individual renters. Corporate rentals need to be well-maintained and equipped with luxurious finishing touches that make a place feel like home.Related: Investing in Real Estate: Long-term Rental Properties Vs. Short-term RentalsBetter tenantsFinding the best tenants for your rental property is the dream of every landlord. It is a long procedure to screen tenants and perform routine check-ups on the investment property. Corporate rentals don’t face such a problem as the landlord deals with the corporation for any issues that may occur, and tenants tend to be quite clean and rent checks are always on time. Choosing to invest in a corporate rental can reduce a lot of costs for finding tenants for the property along with finding sophisticated tenants that will take good care of your rental property.Less overall maintenanceUsually for Airbnb rentals or short-term rentals, the maintenance and follow-up required to make sure the investment property is generating revenue tend to be high. However, corporate rentals attract tenants that tend to take good care of the property and this efficiently reduces maintenance costs.Customizable rentalsCustomizing the rental property to fulfill a specific purpose can be a challenge on its own. However, it can lead to bigger profit margins as the space can be utilized to target your desired tenant. Different property types may affect the type of client that will benefit from it. Corporate rentals can be single family homes or furnished apartments or condos. An investment property can be utilized as a luxury home for executives during long travel assignments or customized to be homier as blue-collar employees prefer a home vibe in their daily environment.Another lucrative option is dealing with insurance companies for displaced families for an extended period. This last option can create a high rental income on its own as insurance companies tend to lease for long periods at a time.How can you spread the word of your corporate rentals?This is an important step in owning corporate rentals. You need to list all the services that your space can provide and take many photos of your investment properties to make sure your clients can get a view of what you have to offer. Send offers and information about your real estate property both through emails and mail to corporates and companies that you think can use such services. Additionally, make sure to list your properties online on corporate housing websites such as corporatehousingbyowner.com and corporatehousing.com.Large-scale construction companies are often looking for corporate housing for their labor. Make sure to include as many as you can in your emails and advertisements.Related: 7 things to Know Before Renting out a House as an Investment PropertyThe downside of corporate rentalsDemanding tenantsTenants in corporate rentals are not afraid to make demands, which can automatically raise your rental expenses. It is important to make sure that all provided services and home facilities are fully functioning and up to standard. VIP clients are not afraid of asking for services at any house; so be ready for any unplanned events.Rental demand fluctuationThe rental demand for corporate rentals fluctuates along with the economy. You might have seasons or years fully booked, but find yourself unable to make monthly payments in other seasons. This is the nature of the rental market and it’s your duty as both a real estate investor and as a landlord to ensure the bills are paid in both the high seasons and the low ones too. This is similar to Airbnb rentals as they tend to be seasonal and connected to the travel sector.Related: 5 Challenges of Owning an Airbnb Rental and How to Overcome ThemHigher costsThe costs of running a corporate rental are higher than running any other type of rentals. This is due to the need for constant marketing, cleaning and maintenance costs.Both the real estate market and the rental market have lucrative opportunities that real estate investors can make use of. Making money in real estate is attainable through finding the best use for each investment property and channeling it to generate profit. Corporate rentals are a significant part of the real estate investment business, and anyone can utilize his/her properties for this purpose.To start your 14-day free trial with Mashvisor and subscribe to our services with a 20% discount after, click here. Start Your Investment Property Search! START FREE TRIAL 0FacebookTwitterGoogle +PinterestLinkedin Ahmad ShukriAhmad is Content Writer at Mashvisor with a degree in marketing. He enjoys writing about everything related to real estate and especially the top markets for investment properties. Previous Post How to Calculate Cap Rate for Rental Properties Most Efficiently Next Post How to Find the Best Investment Property for the Maximum Return Related Posts 7 Ways to Increase Your Vacation Rental Bookings Passive Real Estate Investing Without Professional Property Management – Is It Possible? How to Make Money Flipping Houses – Tips for Maximum Profits What Makes Real Estate Investing a Top Choice for Investors? 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