Investors are considering where to put their money in today’s market. More and more often those investors are discovering real estate to be the ideal investment. They have discovered so many different options in this category and have studied the market to understand peak times of profit. Options are pretty endless for real estate investors right now. They can buy and flip houses, rent out houses, own small apartment buildings, rent out other spaces, etc. A rising section of real estate investment is corporate housing
Renting out corporate housing differs from other renting opportunities. Typically, when an investor rents out an apartment or other space, they fix what is absolutely necessary, and does some cosmetic touch ups to the space. The renter then comes in with all of their own furnishings on move in day. Also, the lease is typically a yearly term. Corporate housing differs from this in a few ways. The investor comes into the property expecting to spend a lot more to make the space completely livable. The corporate housing renting spaces are lent out to corporations and other large businesses. Because of this, the investor makes the space as up to date as possible. He will also fully furnish the space, because these stays won’t typically be as long. They will be on a more month to month basis rather than yearly.
While the investor may come to the start of the project with more out of pocket money typically they will end up with more money in pocket in the long run, depending on a few details. The investor has to do a lot of research to determine where to invest into a property. Not everywhere will be beneficial for corporate housing. The investor has to determine where corporations or business may want to expand. Large cities are typically a good bet as well as expanding areas around the country. Once this is determined, it is up to the investor to market their property. It is important to create great business relationships. Often times, a corporation will continue to use the same corporate housing again and again, because it cuts back on time and is simply easier. An investor wants a couple of corporations to do this. It guarantees good tenants and a steady cash inflow.
Investors also understand that they can charge more for corporate housing than they can for typical renting because of the clientele they reach and the fully furnished space they offer. Something else to keep in mind as an investor, however, is the other services that corporations will be expecting during their stay. They will most likely expect a cleaning service of some sort and dry cleaning. They will also want to know about the area and what is offered for them (dining, entertainment, etc). While this will cost more for the investor, it pays off in the ending price corporations are willing to pay.
While there are many different options for real estate investors at this time, the growing area seems to be corporate housing. There seems to be a rise in the need for corporate housing and investors are realizing this quickly. Because of the great need, the money is certainly there to be made; that is, if the investor is willing to put in the time, money, and energy to choosing the right place and making it great.