How Simple Houses Can Make You $2k-$3k/Month Through Corporate Rentals

By - Monday, June 17, 2024

Are you seeking a profitable way to establish a consistent revenue stream without the inconvenience of frequently accommodating transient guests? Mid-term rental arbitrage could be an ideal alternative for you. By leasing simple yet cozy homes for corporate clients, you have the potential to generate a monthly income ranging from $2,000 to $3,000 per home. Here's how it works and why it's an excellent investment strategy:


What does the term "mid-term rental arbitrage" mean? 
Mid-term rental arbitrage involves the process of renting a property and then subleasing it to corporate clients for durations ranging from 3 to 6 months. This technique is especially attractive to firms that need temporary accommodations for employees on assignment, consultants, or staff members who are relocating. In contrast to vacation rentals, which experience frequent turnover, mid-term rentals provide stability and attract tenants of higher quality. 

What is the reason for targeting corporate clients? 
Increased market pricing: Corporate clients are willing to pay higher rates for well-maintained, furnished properties that offer a suitable living environment for their staff. This implies that you have the ability to set higher prices compared to conventional long-term rental options. 

Reliable Payments: In general, companies have developed procedures for managing housing bills, guaranteeing punctual payments. This mitigates the possibility of late or overlooked rental payments, ensuring a more consistent and predictable cash flow for you. 

Property maintenance: Corporate clients typically exhibit superior care of rental properties in comparison to short-term vacationers. By reducing the number of turnovers and increasing the duration of stays, there is a decrease in the amount of damage and deterioration to your property, and companies typically uphold a higher level of cleanliness. 

Mid-term rentals offer significant advantages compared to vacation rentals. 

Hosting Responsibilities Minimized: Unlike holiday rentals, which require the regular handling of check-ins, check-outs, and cleanings every few days, mid-term rentals involve fewer frequent turnovers. It also means that you dedicate less time to property management and more time to other aspects of your business.

Reduced maintenance expenses: As the number of guests decreases, there is less need for frequent cleaning and repairs. Implementing this can substantially decrease your operational expenses, thereby enhancing your profit margins. 

Reduced Risk of Property Damage: Vacation rentals have the potential to attract gatherings and aggressive visitors, which can result in property damage and increased expenses for repairs. Typically, mid-term business clients show more care for the property, thus decreasing the possibility of any damage occurring. 

An Introduction to Mid-Term Rental Arbitrage 
Search for appropriate real estate options: Search for residences in sought-after suburban areas that are in proximity to corporate headquarters, commercial complexes, or transportation centers. Steer clear of city centers and homes subject to Homeowners Association (HOA) regulations, as these factors can complicate your rental approach. In our program, we always adhere to the three H's: hospitals, highways, and hotels.

Furnish the property: Corporate clients anticipate a fully furnished home. Investing around $5,000–$10,000 in high-quality furnishings will increase the appeal of your property to prospective tenants. Ensure that the property possesses all the necessary conveniences to provide a comfortable living environment. 

Market Your Rental: Utilize channels that specifically target corporate housing requirements, such as Airbnb for Work, VRBO, or dedicated corporate housing websites. In our nearly ten years of experience in this industry, we have compiled a list of the top resources with minimal competition, and at the same time, we have cultivated a network of personal connections through our years of experience.
Emphasize the advantages of your property, such as its prime location, wide amenities, and suitability for medium-term stays. 

Ensure that you take care of the property by employing a reliable maintenance staff to address any necessary repairs, as well as a cleaning team for monthly cleaning tasks. This guarantees that your property remains in its optimal condition, ensuring the satisfaction of your business clients and their willingness to extend their lease.

In conclusion 

​Mid-term rental arbitrage presents a highly profitable prospect to generate a monthly income ranging from $2,000 to $3,000 with less inconvenience as compared to holiday rentals. By prioritizing corporate clients, you can benefit from regular and reliable payments, improved property maintenance, and decreased managerial duties. Your simple properties can transform into a reliable revenue stream by adopting an effective strategy, enabling you to achieve financial stability and expansion within the rental market.

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