We 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.
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.