Why You Should Get Going with Corporate Rentals

I asked Al Williamson if it’s too late for AirBNB for corporate rentals or even in general, as it is already pretty popular.

Here’s what he said…

AL WILLAIMSON:
Landlords have always had the ability to woo business travelers to their rentals.

But now that online travel agencies such as Airbnb, HomeAway, and TripAdvisor have gone mainstream, it’s easier than ever.

Let’s define a corporate rental as a dwelling that’s leased directly to a company or a business traveler who has a housing allowance. If a company is paying for the rental, and not the tenant, then it’s a corporate rental.

When a company pays their employees or contractors to work remotely, then that tenant:
1 – Will behave and not embarrass their employer
2 – Will have a binary attitude towards your rates. Either they are within their allowance or they aren’t.

These two characteristics make business travelers the most lucrative and ideal people for your rentals.

The Opportunity:
Business travelers find that with short-term corporate rentals, they are able to afford more home-like conveniences for less. They are able to cook healthier, have more privacy, and have a richer travel experience when they don’t stay at a hotel.

That’s why the trend in corporate housing is spiking. Especially when a traveler is on an assignment for 30 days or longer.

Extended stay business travelers actively search for houses and apartments to live in. Many want to live in neighborhoods and not off freeway offramps.

Now, is it possible that you could furnish a rental to accommodate corporate travelers? Could you earn hotel-size money instead of market rents?

Most certainly!

How Much Can You Make?

The Government Services Administrations (gsa.gov) maintains a list of daily hotel rates for various cities throughout the United States. Their website presents per diem housing rates for each calendar month.

If you’re trying to decide if a corporate rental would be profitable, then look up the GSA per diem rate for your city and work with that number.

For example, the GSA per diem hotel/lodging rates for Sacramento, CA is $91.00 per night (assuming a 30-day stay). That’s $2,730 per month.

Assuming a 70% occupancy, if you have a one-bedroom corporate rental in Sacramento, you could reasonably expect to earn a maximum of $1,911 per month.

NOTE: My Sacramento corporate rentals actually rent for $1,860 per month. When I accept pets, and charge a $50/month pet fee, I’m still a more affordable choice.

The next step is to calculate the difference between your expected corporate rental earnings and your local market rent.

For example, the going rents for a one-bedroom apartment in Sacramento is $950 per month. This means that you could make $910 extra each month ($1,860 – $950) if you converted a traditional rental into a corporate rental.

That’s a LOT of money!

Of course, you’ll need to pay for the electricity and other monthly expenses associated with a corporate rental, but even after paying those expenses, the additional net income is fantastic.

Help Making a Decision:
Extended stay hotels have been around for decades. They’re a part of a mature industry. By focusing on extended stay, and not nightly stay, you can take month-to-month landlording to new heights.

Corporations behind Extended Stay America and Residence Inn by Marriott use a lot of sophisticated financial models and institutional knowledge to decide where to place their +$10M hotels. So, if there’s an extend stay hotel is near you, then you should accept that as proof that your extended stay corporate rental will be wildly successful.

I’ll talk more about all this at my upcoming Traction REIA events:

#1.  IN-PERSON: Washington DC Main Monthly Meeting

TOPIC: “How to Create a Profitable Extended Stay AirBNB within 30 Days Using None of Your Own Money”
SPEAKER: Al Williamson

Thursday April 21st IN-PERSON
Hilton Garden Inn Tysons Corner
8301 Boone Blvd
Vienna, VA 22182
6pm to 9pm

Click here to RSVP

#2.  Washington DC IN-PERSON: Full Day Training Event with Al Williamson

TOPIC:
“How to Generate Passive AirBNB Income with or without owning rentals so you can retire in 2 years”

Saturday April 23rd IN-PERSON
Hilton Garden Inn Tysons Corner
8301 Boone Blvd
Vienna, VA 22182
9am to 4pm

Get your ticket now

#3.  IN-PERSON: Tampa Main Monthly Meeting

TOPIC: “How to Create a Profitable Extended Stay AirBNB within 30 Days Using None of Your Own Money”
SPEAKER: Al Williamson

Thursday April 28th IN-PERSON
Holiday Inn Tampa Westshore
700 North Westshore Blvd
Tampa, FL 33609
6pm to 9pm

Click here to RSVP

#4.  IN-PERSON: Sarasota Main Monthly Luncheon

TOPIC: “Supercharging your rentals with Extended-Stay AirBNB”
SPEAKER: Al Williamson

Friday April 29th IN-PERSON

Gecko’s Grill & Pub
Clark Road & Honore Ave
5585 Palmer Crossing Circle
Sarasota, FL 34233

12Noon to 2pm

Click here to RSVP

#5.  TAMPA/SARASOTA: Full Day Training Event with Al Williamson

TOPIC:
“How to Generate Passive AirBNB Income with or without owning rentals so you can retire in 2 years”

Saturday April 30th IN-PERSON
Courtyard by Marriott Sarasota/Lakewood Ranch
8305 Tourist Center Dr.
Sarasota, FL 34201
9am to 4pm

Get your ticket now

Tom Zeeb
President
Traction REIA
Washington DC | Tampa | Sarasota | Online

Traction REIA:
12+ Year Recipient of the National REIA “Honors of Merit”
and the “Award of Excellence”
For Best Real Estate Investor Association!

HEAR WHAT OTHERS ARE SAYING…

“Tom Zeeb has the formula for success.  You just need to follow what he says.”
– David McGrady

“The best help from Tom was the negotiation techniques & tactics. His Bootcamp got me on track.”
– Ryne Lambert

“I used your marketing. I used your contract. I got the deal and got it done.”
– Danisha Byrd

“I’m so happy today, I am about to do my first rehab property all thanks to you.”
– Eric Nkemtaji

“I implemented what was shown. I just started doing it & BAM! my first deal came in.”
– Godfrey De La Rosa

“I started implementing exactly what you said, used your contract, & signed the deal up!”
– Dominic Mason

Ready To Move Your Real Estate Investing Forward, Faster?

Our TRACTION CONTROL program may be a fit for you. Just click below & submit the form on the next page and we’ll contact you.