Identifying the Differences between Short-Term Unit Rentals and Corporate Housing - Corporate Housing’s True Value for Corporate Travelers, Companies & Communities

Some communities, including local municipalities and large cities, have had growing concerns about the disruption created to their community from the constant rotating guests of short-term vacation rental units available from share economy websites. Because of these concerns, legislation is being created to prevent further community disruption. That same legislation may inadvertently have a negative impact for other related rental industries like corporate housing, which hosts a business-related clientele for longer stays. Most communities have no issue with corporate housing units, being professionally-managed and well-maintained.

In order to express the clear differences between a short-term vacation rental and corporate housing furnished apartments, let’s look at a comparison of the two.

CORPORATE HOUSING

• Professionally-managed Units
• Professionally vetted clients
• Professional, business-to-business model

CORPORATE HOUSING VALUE FOR BUSINESSES
Corporate housing serves a valuable and specific need and is a fundamental part of many businesses’ operations
Housing options specifically suited for employment/business-related purposes with a focus on a temporary stay keep your employees on the track to success

CORPORATE HOUSING VALUE FOR GUESTS - WORK-LIFE BALANCE
Corporate Housing is an important comfort to employees, interns and others that work and live in transition.
A consistent process for guest experience cultivates more engaged and focused employees, thus helping employers achieve their business goals

CORPORATE HOUSING BENEFIT FOR THE COMMUNITY

• Less boarding house-like feeling for nearby neighbors
• Cooperates with local communities
• Dependable rental income
• Tenants comprised of vetted professionals and their families
• Closely managed residences

WHO USES CORPORATE HOUSING?

• Individuals, military personnel, and corporations
• Relocated employees
• Consultants
• Employees in training
• Interns

Other clients include:

• Medical professionals
• Film and entertainment crews
• Patients receiving specialized care away from home and their family
• People displaced by fire or natural disaster, among others.

WHAT IS INCLUDED IN CORPORATE HOUSING PRICING
Occupancy tax and other financial obligations, as required
Assurance unit property managers are abiding all appropriate tax codes
Assurance property is compliant with property zoning laws

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ABOUT SHORT-TERM RENTALS

• Inconsistent and unregulated
• Self-managed
• Not properly vetted
• Online shopping, vacation-centric clients
• Peer to Peer Platform, Consumer to Consumer Share Economy

CHALLENGES OF SHORT-TERM UNITS

• Short-term units may not be familiar with tax laws and regulations
• Short-term units have a high rate of tax collection issues common for self-managed property owners
• Short-term units are unregulated and unmeasured for health and safety codes
• Self-managed units may or may not adhere to apartment community lease restrictions and other local regulations, in other words, illegally renting out unbeknownst to the guest.

CONCERNS FROM THE COMMUNITY

• Short-term units function differently in communities mainly comprised of long term renters. Here are the major concerns:
• A revolving door of different guests with very short stays
• Over-occupancy of a unit
• Ill-behaved guests unaware of community rules
• Large gatherings
• No criminal background checks
• General lack of guest accountability 

 

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