Corporate rentals are filling the gap for some property owners, even as economic setbacks have forced sky-rocketing evictions in the regular tenant market. While offering a possible solution for meeting the mortgage, homeowners need to do their homework before plunging into the rental market, including furnishing the extra amenities that corporate renters expect. See the following article from Housing Predictor for more on this.
The downturn in the housing market is making it hard for many homeowners to sell, and becoming a landlord isn’t for everyone. In the troubled economy a growing number of homeowners are looking for options to pay the monthly mortgage and corporate rentals could be the answer.
Landlords report rising problems with tenants, who can’t afford to pay the rent due to job losses with unemployment rates reaching 30% in the worst hit areas of the country and other problems. Eviction rates are spiraling amid the worst economic downturn since the Great Depression.
Being a landlord comes with all sorts of responsibilities and headaches, not to mention the occasional tenant who moves out without giving notice. Midnight move-outs are rising as embarrassed renters pack-up and move from homes and apartments while neighbors are sleeping.
“Many homeowners turn to the rental market without first researching the market and developing both a management and marketing plan. They quickly realize first-hand just how difficult it can be and how much competition is around,” said Kimberly Smith of Corporate Housing by Owner.com.
Smiths’ website connects homeowners that offer fully furnished short term rentals to corporate renters. Corporate housing renters are typically higher caliber, net worth individuals who are employed looking for a way out of the nightly motel and hotel grind while they’re visiting an area for work.
Elaine Quiroz, president of a Virginia-based corporate housing consulting firm says that anyone looking to convert their home or investment property into a short term furnished rental should take time to consider everything that’s involved.
“Furnished rentals require more upfront costs, and more effort in terms of coordinating turn-over between tenants, as renters typically stay for one month or more and rarely sign 12 month leases,” said Quiroz.
Corporate rentals customarily provide all the conveniences and necessities for a comfortable stay such as a fully equipped kitchen, well appointed bedrooms with linens provided and a laundry room. Some corporate rentals are pet friendly and provide special items to meet the needs of your pet.
Adriane Webb, a real estate investor in the Washington, DC area changed to corporate renting after the bottom of the real estate market fell out in the nation’s capitol. “The changing market conditions became very challenging for us,” said Webb.
“While we did have one property rented, the income earned was not enough to cover other associated expenses like homeowner association fees, leaving us to supplement the difference. Moreover, our second property sat idle with no renter for several months.
“I quickly updated the floors, gave the property a fresh coat of paint, and purchased new furnishings and linens,” said Webb. Within three days of listing the home, Webb booked her first tenant. She then knew corporate rentals were in her future.
This article has been republished from Housing Predictor. You can also view this article at Housing Predictor, a real estate analysis and forecasting site.