There is another and completely different side to corporate housing when it comes to finance, Investors. Many corporates or private investment individuals see a whole range of profits to be made from corporate housing. This is because a good return on an investment is not so easy to find these days however, corporate housing apartments, condos etc do provide a long-term investment. Why would corporate housing be a wise investment? Well, according to Kimberly Smith the founder of CHBO (Corporate housing by owner) poor relocation can often lead to problems.
There are schools to be considered for the children when relocating. Families need a harmonious transition when the company they may have been with for 15 years or more, suddenly ships them off lock-stock and barrel to a foreign country. This is why corporates are creating partnerships with corporate housing owners. The transition of a family to foreign soil needs to be a harmonious move. Employees setting up a new workplace or simply relocating to another wing of the company need to be fully satisfied when they are at work with their personal home affairs otherwise they cannot give 100% attention to their new position which may well be a promotion. This causes tension in the workplace so it is an all-important point to be considered.
Global demand for corporate housing is on the increase and in fact increased last year by 11% and revenues were expected to reach over $36 billion by the end of 2018.Is this reason enough for investment? Definitely says Kimberly Smith which is why so many corporates are funding this type of short term housing.
Corporate Housing by Owner launched its 9th annual real estate survey and collected data through until February 2018. The survey incorporated questions/topics such as Landlords at properties, the average required length of stay, pricing trends in various countries and were amazed at the results of this survey. A website was set up to make it easier for individuals to find the ideal temporary place residence. This site: https://stlch.com/ is well worth looking into as it goes into likes and dislikes of a property, size, furnishings and available facilities etc. it would be well worth getting some advice from CHBO before relocating especially family relocation. Amazon have also entered this lucrative market, Crocker-Amazon offer quiet area residential short-term rentals in upmarket suburbs and are also worth a look. These are executive properties for rent with some amazing facilities nearby.
In the end, corporate housing by owner is not just some estate agent or other looking out for some probable cheap accommodation in order to sell a package tour. In fact, if a corporate is involved in the temporary move it will probably be the corporate who does the looking. Insurance companies who have assessors dashing all over the world assessing claims are great users of corporate housing. It definitely pays them to become involved in the purchase of these properties. There is no collecting of rentals for which you need a managing agent requiring a percentage of your tariff. CHBO is definitely a worthwhile investment according to those in the know.