A Closer Look at Chicago Corporate Rentals And Why Invest Now
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Chicago Corporate Rentals
Corporations need to think about deciding how to house employees sent on extended business trips. No matter how comfortable hotels are, they're costly in the long run and cannot replace the feel of a home.
This has given rise to something known as corporate housing, which is deemed a suitable alternative for short-term housing for employees.
However, corporate housing includes any housing that offers fully furnished units for 30+ day stays for professionals, students, vacationers, and people requiring short-term rentals.
Although these units sometimes have slightly higher fees, they're well-stocked and often include a full kitchen, maid service, washer and dryer, and amenities located centrally to make commuting convenient.
Let's look closer at temporary housing rentals to understand if they're worth your time and investment.
Why Corporate Rentals?
Market Opportunity
Surveys have revealed that nearly 19% of the landlords offering corporate housing rentals relish an annual occupancy rate of 94%.
An additional 16% of the landlords had an occupancy rate of 89%, while about 9% commanded a 100% occupancy rate annually.
Since most properties were in the 70% to 100% bracket of occupancy rate, the numbers are pretty astonishing compared to the global rental market.
Client Type
A key challenge when handling tenants in traditional rental properties is balancing the unique issues with the different backgrounds. There are many chances of you finding tenants who make unreasonable complaints and demands, pay late, or cannot take good care of the property.
These concerns are minimized with corporate apartment management, as the clients are usually reputable and professional organizations.
The associates or employees who occupy the units know that their behavior reflects on the company.
Treating the property poorly or damaging anything could cost them their job. Plus, they're well-organized, with payments being hassle-free and on time. All these attributes can help lower repair and maintenance costs, making you more profitable.
Here are five top professions and candidates that commonly use corporate rentals:
- Business travelers: Business travelers, such as executives, consultants, and sales representatives, are among the top candidates for corporate rentals. These professionals may need to frequently travel for work and require a temporary residence that offers a comfortable and convenient living space.
- Relocating employees: Companies often use corporate rentals to house employees who are relocating for work. These employees may need a temporary residence while they search for a more permanent housing solution.
- Film and entertainment industry professionals: The film and entertainment industry often uses corporate rentals to house actors, directors, and other crew members during filming. These rentals provide a comfortable and convenient living space for the duration of the project.
- Healthcare professionals: Healthcare professionals, such as traveling nurses and doctors, may require temporary housing as they move between hospitals and healthcare facilities.
- International travelers: International travelers, such as diplomats or foreign business professionals, may use corporate rentals as a convenient option for extended stays in a new country.
Chicago Corporate Rentals Market: Attractive Investment Opportunity
Short-term corporate housing apartments in Chicago, aka corporate leasing apartments, are becoming increasingly popular options for business professionals. These short-term furnished rentals provide a convenient and comfortable alternative to traditional hotels and long-term rental apartments.
As a result, the corporate rental market in Chicago is thriving and presents an attractive investment opportunity for landlords.
Chicago is one of the largest business hubs in the United States and attracts many business professionals who require temporary housing solutions. This has created a strong demand for corporate rentals in the city, making it a lucrative investment opportunity for landlords.
Corporate Housing Providers Association (CHPA) data shows Chicago is among the top 10 U.S. cities for corporate rental demand.
Chicago Corporate Rentals: Market Is Booming
Investing in corporate rentals in Chicago offers several advantages for landlords. Here are three (3).
First: Chicago corporate rentals command higher rental rates than traditional long-term rentals due to their convenience and furnished status. These rentals provide tenants with all necessary amenities, including high-speed internet, cable TV, and kitchen appliances, which make them more desirable for short-term stays. This means landlords can generate higher rental income from their properties.
Second: Chicago corporate rentals have lower vacancy rates than traditional rentals. This is because there is a consistent demand for short-term rentals, especially in urban areas where businesses are often located. This means landlords can avoid the costs and hassle of frequent tenant turnover.
Third: Chicago corporate rentals have longer rental terms, which means landlords can avoid the costs associated with marketing and advertising their properties to new tenants. Corporate rentals typically attract tenants looking for a temporary housing solution for a few months or a year rather than those looking for a long-term home.
Maximize Revenue with Smarter Corporate Housing Rental Strategies
Are you considering investing in short-term rentals or multi-family properties?
Interested in exploring the benefits of corporate housing over traditional rentals? Look no further than our expert consulting services.
Inter Properties, Inc specializes in short-term rental investments, corporate housing rentals, multi-family property investing, commercial real estate management, and facilitating buying or selling properties for international buyers.
With our industry expertise and personalized approach, we can help you maximize your profits and minimize your risks in today's competitive real estate market.
Are you looking for a corporate housing rental agency? Let's talk!
