There has been much talk of corporate rentals in the media lately as they have played a significant part in our local real estate market. For those of us in real estate, it’s easy to identify our markets, but for those outside, it isn’t so simple. So let’s cover a basic premise today, what exactly is corporate housing?
Naples Corporate housing or corporate rentals are homes that are leased by or for an employer. It includes housing provided as a perk for permanent staff, as a temporary base for relocating staff or as somewhere to stay for peripatetic staff. They are most often a mixture of furnished apartments, single family homes or estate homes.
It isn’t very often that corporate housing is provided as a perk, as part of a package as it doesn’t really work. Most families prefer to have their own space with which they can do what they like. These kinds of corporate rentals are most often found with smaller businesses or through companies that expect their staff to entertain clients a lot.
Using corporate housing as a temporary base while relocating is one of the most popular uses. Having somewhere secure from which to get used to your new city and somewhere from where you can begin looking for your own home takes a lot of stress out of moving to a new place. It is for this reason that there are often corporate apartments in places where staff move around a lot.
These types of corporate rentals are proving very popular right now as the real estate market stagnates. If someone has to move city for a job and has a house on the market in their old city, it may take months for it to sell. It is beyond most people to be able to support a new home while paying the mortgage on their old one.
This is where a corporate apartment comes in very useful. The employee is able to move to their new city and become productive right away without having to worry too much about having to pay for two homes. Moving can be stressful enough without that!
While it does cost the company money, it is regarded as an investment. A happier, more productive staff member will pay for the outlay in no time at all. Plus, having a corporate rental makes the decision to accept a posting in a new city much easier. If the employee is valued, it’s a simple thing to offer them.
Finally, corporate rentals are useful if a company has a lot of staff who travel. If there are enough people who would use the property, a furnished apartment is cheaper to run than a hotel room or suite. It’s also homelier, offers more amenities and makes the employee feel more comfortable.
Corporate rentals make a lot of sense if the company is large enough, which is why they are doing their bit to help support the real estate market of our country.