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Smart Marketing By Partnering With Corporate Housing Companies

Smart Marketing By Partnering With Corporate Housing Companies

Forming an excellent relationship with Corporate Housing Providers (CHPs) is a smart alliance because of how valuable a partner you can gain to lease up your property and keep it that way.  There are approximately 61,280 corporate housing units occupied every day paying one billion dollars in annual rent.  This is a huge revenue stream to tap into!

I recently attended a meeting with other area corporate housing providers and property owners and managers.  The reason for the meeting was to encourage better communication between these two groups and some very interesting points and ideas were shared.  Here are 5 great reasons why partnering with a CHP is a smart move for those who own/rent apartment properties.

1.)      Working with corporate housing is easy!

 ®      Working with corporate housing is less work.  Because CHPs are in similar businesses, they can expedite the leasing process and cut down on your workload, which means you have more time for other things.  CHPs sign leases on a daily basis and don’t require the additional time that is typically spent on walking through a lease with an individual prospective renter.   Additionally, CHPs rents are always paid on time, which means no three-day notices and chasing down rental payments.

Make more money with corporate housing

 ®      CHPs typically pay market rent and in many cases pay a premium for shorter term leases.  Although often asking for deposits to be waived, they do pay administrative fees, which means leasing agents still receive their commission and the leases are still “on the books” for bonuses.

®      **Here’s an inside secret**  CHPs will target and market the communities that are easiest to work with!

®      There are many times that a CHP will start with a short term lease and those leases will keep extending, starting at 3 months and turning into 2 and 3 year leases! 

3.)     Make turn cleans easier and less expensive

®      As a rule, CHPs, like any other resident, are always responsible for any damages beyond normal wear and tear.  Many CHPs send in housekeepers after vacating a unit to do a turn clean, so turn costs are very low or nonexistent.

®      Turn clean costs are also something that you can request or negotiate for with a CHP upfront, which would negate any loss on a turn clean.

 CHPs take care of paying taxes on short term leases

®      For example, in the state of Florida, any lease under 181 days requires that state and local taxes be collected.*  CHPs will provide the apartment properties that we work with a tax resale certificate, which means the property has no liability to pay taxes on these short term leases. 

       5.)  CHPs screen their residents

®      The CHP will provide the apartment community with, at the minimum, the guests’ name and contact information.  If any property requires a resident screening, make sure you add that to the checklist when working with CHPs.  Most CHPs are happy to provide this information and pay for the costs associated with the screening. 

CHPs look for properties that offer a few different things:

1.)     --Well maintained properties in good locations.

2.)     --3 month lease terms - what some properties prefer is that the CHP sign a 12 month lease      with a 90 day minimum commitment with a 30 day notice requirement.

3.)     --A property with a good maintenance staff so that resident issues are handled promptly.

 

It is a great idea to get to know the local CHPs.  Pick up the phone and give them a call!  CHPs can be one of your strongest partners, making your life easier and helping to keep your apartment community full. 

* This varies by state, so check with your state tax collector to see what the liabilities are.

About the author:  Patrick “PT” Collins is an expert in corporate housing and is the Vice President of Business Development for Avenida Suites.  PT is very passionate about Corporate Housing and is the owner of the largest group on LinkedIn for Corporate Housing Professionals.  For more information, contact him at This email address is being protected from spambots. You need JavaScript enabled to view it.

 

 
This comment was minimized by the moderator on the site

I THINK CORPORATE LEASING IS A GREAT WAY TO GO. IT PROVIDES STABILITY AND PRICE CONTROLS TO THE CORPORATE SPONSOR, AND RENTAL INCOME TO THE PROPERTY OWNER/MANAGER.
A WIN/WIN.

  EILEEN SCHWARTZ

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