Many of you might wonder if your furnished vacation rental could also be marketed as a corporate rental. It’s a good question and shows you’re thinking about ways to maximize your exposure and income.
Here are some telltale signs that your vacation rental might be a good corporate rental too:
Location, Location, Location: Is the location of your vacation rental near a large city, big business, hospital, theater, university, or event center? If so, your vacation rental can easily double as a corporate rental. Corporate housing is typically used by traveling business professionals, relocated families, visiting doctors and nurses, and those traveling for medical treatments. The perfect vacation and corporate towns include cities such as Orlando, Las Vegas and Atlanta, which serve as both business meccas and vacation hot spots. On the flip side, if your rental property is located in a niche ski village or cozy beach town, it’s likely more appealing as a vacation rental.
Seasonal Trends: Season can often dictate whether your furnished rental property would be more profitable as a corporate or vacation rental. During peak travel seasons in your area, perhaps you can ask a higher rental rate from vacationers. However, if large conference comes to town, like the Consumer Electronic’s Show in Vegas, you might want to reserve the property for a corporate client to maximize your rental income.
Rules and Regulations: Always consider local laws and regulations when deciding how to market your property. Some cities like Chicago, Austin and New York do not allow for nightly or weekly rentals, which are typical for a vacation period of time. In these cities, consider marketing your property solely as a corporate rental, which typically require a minimum stay of 30 days. Other regulations that might impact how you market your property might include city ordinances and home owner association rules too.
Pain Per Dollar: If you’re like me, you might want to have a renter stay for at least a month, after all, you know the great effort and investment required to turn over a property between tenants. If you want less “pain per dollar,” consider offering your rental home solely as a corporate rental with a minimum stay of 30 days. This means you’ll be turning the property over less and will have less grief per dollar.
Pre-Bookings: Vacationers like to book their properties month’s in advance of a stay, which means your property won’t be available to someone who approaches you for a long-term stay. For a corporate rental, we generally recommend booking no more than a month out so you are available to someone for a long-term booking. This is something to consider as you choose between marketing your property as a vacation or corporate rental.
Remember, you don’t have to choose whether to market your property one way or another. You can do both depending on seasonal trends, location and your tolerance for pain (pain per dollar).
This is a guest post by Kimberly Smith, the founder of CorporateHousingbyOwner.com, a website that connects individuals who own furnished rentals with those in need for corporate housing or furnished apartments. She is also a writer for the CHBO blog, “Corporate Housing Chat” and real estate investor.