For better or worse, we can all agree that COVID-19 has universally transformed how we think about the future. The uncertainty of up-and-coming markets has thrown a wrench into plans for rental property investors everywhere. While consumers’ inclination to book short-term vacation rentals was on its way to all-time high for 2020, those projections have become susceptible to costly booking cancellations caused by travel restrictions and stay at home ordinances. Now is the time to carefully reassess your property investment options, and to see if you would be better off transitioning your short-term or long-term rental into an Executive Rental.
Understanding today’s consumer demands will be key to help you feel more confident about making the best decision when faced with volatile market circumstances. Let’s start by answering some of the key questions that come to mind as you consider your options for investing in Executive Rentals in lieu of Short-term or Long-term rentals.
Unlike short-term rentals, Executive Rentals (also referred to as "Corporate Rentals") are rental properties that offer a perfect solution for guests looking to stay for 30 days or more.This is a great alternative to long-term rentals, which often have lengthier vacancy rates tied to annual or multi-annual lease agreements.
The market demand for Executive Rentals is driven by consumers in need of a convenient turnkey living arrangement that allows month-to-month, or quarterly flexibility. These renters tend to seek the amenities hotels and vacation rentals cannot typically provide for an extended period of time. Another demand gap are the renters who avoid commitment to lease agreements that rarely cater to their intermittent stay and move-in-ready needs.
While this temporary booking arrangement may sound risky at first, there is actually a significant demographic that falls into this specific category. Executive Rentals work particularly well for business professionals requiring temporary placements like traveling nurses, or remote employees, for example. As a matter of fact, we have been seeing that there has been an increasing rate of remote-workers who are actively seeking executive rentals for a change of scenery in light of quarantine boredom.
Ideal locations are subject to each tenants’ personal preference when looking for temporary living arrangements. Some prioritize locations walking distance to work, while others prefer more removed scenic landscapes. Rental properties located near medical facilities can be perfect for travel nurses looking for temporary housing. If you own a property in downtown Savannah you’re in a high-demand area for remote staycationers and the movie industry. From picturesque settings and top-notch dining, to a short drive to Tybee Island, you have plenty to offer.
With Executive Rentals, your initial start-up costs will be centered on providing a fully-furnished living space for a month or more. Covering essential living amenities with work functionality in mind, will be critical when marketing your rental.
To answer the question, the cost of fully-furnishing a rental will vary depending on the size of your executive rental. For a smaller, 1-bedroom apartment or studio, we estimate your cost to range from $1500-$3000, while a 2-3 bedroom space can range from $5,000-$10,000 from start to finish. As you plan your budget, we recommend you keep the life cycle of your furnishings in mind. Since tenants would be staying there for an extended period of time, there is a higher likelihood that more wear and tear will occur overtime. To decrease the risk of damaged property, you can always set a security deposit that can be collected upon booking.
On the other hand, if you are already operating a short-term rental property, then your expenses for an Executive Rental upkeep will be significantly decreased.
Working with a professional property manager makes a huge difference as managing an Executive Rental or short-term rental can quickly become overwhelming. Knowing how to price competitively by staying on top of market trends amid COVID-19 is and will continue to be challenging to say the least.
This is especially true if you are also planning on managing guest inquiries, keeping the calendar up to date, having maintenance staff and subcontractors at the ready, managing on-call professional cleaners, keeping up with time-consuming accounting, maintaining city and state certifications, etc.
As you can see, the list goes on and on and these are just some of the basic functionalities that professional property managers can provide to save you time as you optimize your revenue. Case and point, finding a professional property manager you can entrust to handle all of the above, whether it is for your short-term rental or an Executive Rental will pay dividends in the long-run.
For more information on how to get started with Executive Rentals, email us at firstname.lastname@example.org or contact us directly at 912-800-1321.