What are the advantages and disadvantages of corporate housing?
If you’re like me and thinking about investing in a corporate rental property, by now you have done some research on the pros and cons of corporate housing.
While renting a property as corporate housing is financially beneficial, it does come with some drawbacks that need to be considered.
For example, in order to rent a space as a corporate apartment, one must first decide the target market you would like to appeal to. There are properties like executive rentals that are marketed to high profile people. And there are properties that are targeted to the everyday renter. If you choose to rent to high profile clients, then the property must be luxurious as well as aesthetically beautiful. This means you’ll spend time and money to guarantee that the furnishing is impeccable, and it’s better that the rental comes with a lot of world-class amenities. These properties are not always easy to manage or maintain as they require a more hands-on approach. On the other hand, if your target renters are traditional workers, then the apartment could be less luxurious and more like a normal home. While these corporate apartments are easier to maintain, they still require their own level of attention. All in all, whether you rent luxury corporate housing or average corporate apartments, there will need to be some level of involvement in maintaining the property. Both styles of properties can be very profitable and will generate more income than a regular rental. And managing both styles of properties come with advantages as well as disadvantages. But that’s normal with just about everything.