5 Corporate Housing Industry Statistics of 2016 and What They Mean For Your Business
The corporate housing industry landscape is ever changing. If you do not stay at the top of your game, you will miss the signs on where the industry is headed. This could lead to a significant loss of income in the near future.
It is imperative therefore, that you watch out for the corporate housing industry trends. One way of doing so is paying heed to the findings of the annual CorporateHousingbyOwner.com (CHBO) survey. You should study those findings in order to gain insight on how to run a corporate housing business.
The 2016 CHBO real estate corporate housing survey report is eye opening. It serves as a guide on what you should expect in 2016 and possibly beyond that. Here are several corporate housing industry trends based on statistics from the report, as well as their implications for your business:
1. 60% Of Corporate Housing Owners Stated That Their Tenants Had Stayed For 3 Months Or Longer.
In addition to the 60% of corporate housing owners with tenants who stayed for 3 months or longer, another 15% of owners reported having tenants who stayed for a year or longer.
What these statistics mean is that there is a higher tendency for corporate housing tenants to stay for much longer than 3 months. It is imperative therefore that you adapt your properties to accommodate people who intend to stay for much longer. Your marketing efforts should also be geared toward these kinds of tenants.
For example, you could consider offering discounts for contracts that last for at least 3 months or more. The longer your tenants stay in your properties, the lower your vacancy rate will be. This is good for business.
2. Airbnb Beat HomeAway As the Most Used Marketing Platform As Well As Source of Renters
Airbnb is a platform with limitless potential. The platform has over 2 million listings, 640,000 hosts, or thereabouts and about 60 million users. Boggles the mind, doesn’t it?
So, when research shows that Airbnb has beaten HomeAway, it is for a good reason. It’s therefore in your best interest to ensure that you market your corporate housing on the platform. Be sure to specify that you rent out your properties for months, not days. The right tenants will find you. Don’t worry about that.
Just to hedge your bets though, be sure to market your property on HomeAway and Craiglist. Based on the CHBO report, the latter online platform gained traction in 2015 when the survey was done. This trend is likely to continue, so take advantage of Craiglist.
3. Only 38% of Corporate Housing Owners Accept Pets Now, Which Is Down From 50% In 2011
Some people are attached to their pets. After all for many people, pets are members of the family. Think of these people as potential tenants who will pay you well to keep their family together.
With less people being willing to house pets, you should definitely do the opposite. Adapt your corporate housing and make it suitable for pets and pet owners alike. By doing so, you will be able to make your property appealing to those who intend to stay for longer with their pets by their side.
The law of demand and supply applies here. With lower supply of pet-friendly housing, and more demand for it, you will be able to command higher prices for your homes. You can then laugh all the way to the bank.
4. 44% of Property Owners Have Used Real-Time Booking Reservations Platforms And 57% Accept Some Form of Credit Card Payments
Automation is the way to go — there is no doubt about that. Real-time reservations done online can save you plenty in terms of time, effort and money. It is important therefore for you to consider using a software product that will allow you to list your properties on popular sites like Airbnb and still automate your bookings. Doing so will reduce the amount of time you will have to spend actively managing your properties when you could be finding new ones to invest in.
MasterCard, Visa, and Paypal are the most popular payment methods used by corporate housing owners and clients. Find a way to incorporate these payment methods within your real-time reservation platform of choice. In addition, explore other payment options that will be convenient to your potential clients.
Remember, the more convenient you make your booking and payment processes, the more likely you are to attract and retain customers. Follow the money!
5. 45% of Corporate Housing Renters Are Relocation Renters
Relocation is hard on everyone especially divorcees. Since 20% of relocation renters are moving because of divorce and want a temporary place to stay, make their lives comfortable. They will never forget you if you do that for them when they need comfort most.
Take time to market to the relocation renters. Position your properties as the go-to place for temporary housing. Offer as many of the comforts of home as possible.
The above are just some of the trends that emerged from the 7th annual CHBO real estate corporate housing survey. Be sure to take note of the report and use the information you garner to operate your real estate business in the most profitable way possible.
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