A Look into Corporate Apartments and Why to Invest in them
Some companies find it challenging to determine the accommodation to pick for their employees while on a business trip. Many have limited options and are likely to choose a hotel since it is the norm. Employers need to consider their worker’s comfort when picking accommodation.
Corporate Apartments and their Uses
Corporate apartments are fully-furnished houses for renting in the short or medium term. Unlike hotel rooms, they have more amenities to make the experience better. They have functional kitchens with essential equipment and a laundry area. The apartments are growing popular with corporates, and you can find them anywhere in your destination city.
Despite previously targeting travelers, corporate apartments get different types of clients. It is an attractive plan for people who need accommodation for a few weeks and more. Here are some everyday users of the houses;
- Expats who need temporary housing when relocating to a new place.
- Construction or manufacturing managers on a short-term project.
- Renewable energy and gas explorers on a mission.
- Healthcare workers on a temporary job posting.
- Film producers and crew when shooting at a location.
Different professionals traveling to a new city for work prefer corporate houses to hotel rooms. It includes IT experts, technicians, consultants, agents, and interns. Still, you can rent when on an adventure or if you want to have a retreat for the team.
Is it the Right Investment?
Statistics show that corporate apartments are in demand throughout the year and the houses have over 90% occupancy percentage. However, other properties receive a lower rate in bookings. Below are some reasons you should consider investing in the sector;
It is common to find stubborn or arrogant customers seeking accommodation in hotel rooms. Also, some clients will damage the amenities and refuse to pay for them. However, you get premium clients if you invest in corporate houses. The room users are usually professionals, with the company making reservations. You can trust corporates to pay the rental costs without fail. The type of clients at corporate apartments are well-manered and will not damage the amenities.
Although three months is when you can rent a corporate house, it is higher than other options like Airbnb and lodgings. You will have few clients in a year for the former if clients spend the maximum time. It translates to fewer maintenance exercises to prepare the house for a new tenant.
Returns on Investments
Corporate apartments are lucrative, and companies will seek accommodation for their employees at the same place when visiting a specific location frequently. The engagements are long-term and will assure you revenue from the continuous business. It is uncommon for corporates to change accommodation for workers when the services are satisfactory.
The Final Thoughts
Corporate apartments differ depending on their location, people visiting the town, and businesses in the area. The service providers are more profitable if they have tenants throughout the seasons. Consider the market prices to set your charges and to compete with rivals.