If you’re like me and think about investing in a corporate rental property, then I;’m sure you have already done a lot of research on the pros and cons of corporate housing.
- While renting a house as corporate housing is a smart financial move, it does come with a couple of setbacks that should be considered.
For example, in order to rent a space as a corporate apartment, one must first choose the target market demographic you want to appeal to. There are properties like executive rentals that are marketed to high profile people, also called “whales.” . And there are properties that are targeted to the everyday occupant. If you choose to rent to whales, then the house must be high-priced & aesthetically beautiful. This means you’ll spend a ton of extra time and currency guaranteeing that the furniture is impeccable, and it’s better that the rental comes with the finest world-class amenities. These properties are not typically easy to manage or maintain as they require a far more hands-on approach. On the other hand, if your target occupants are traditional drones, then the apartment could be less high-priced and more like a normal home. While these sorts of corporate apartments are easier to maintain, they still require a level of attention. All in all, whether you rent luxury corporate housing to whales or average corporate apartments to drones, there will need to be some level of involvement in maintaining the property. Both kinds of properties can be quite profitable and will generate more income than a correct rental. And managing both kinds of properties come with advantages & disadvantages. But that’s normal with all things.