How does a corporate rental differ from a vacation rental? | Think Realty | A Real Estate of Mind

How does a corporate rental differ from a vacation rental?

Kimberly Smith writes on corporate landlord issuesWe are continuing our question and answer guide to help real estate agents and their investor clients understand the ins and outs of corporate housing as an  investment opportunity for their portfolios.

This week we look at corporate rentals vs vacation rentals.

Vacation rentals are typically offered for nightly or weekly stays and are located in tourist hotspots like mountain and beach towns.

3-24-14 House 4 from Linda FB4Vacationers are more interested in perks like beach views and hot tubs, while corporate housing renters are more interested in access to freeways and proximity to city centers.

Remember, location matters if you want to attract a corporate rental tenant vs. a vacation rental tenant.

Vacation rentals will also charge a premium because of the weekly lease term; however the high turnover and sometimes occupancy can often outweigh the benefits of “earning” a higher rate.

Vacation rentals have a much higher “Grief per Dollar” as properties must be cleaned, prepped and leased dozens of times each year.

Corporate renters generally stay for 3 months or longer and they aren’t trying to fit a dozen Spring Break college kids in your property.

Visit Kimberly’s website here.

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