Landlords have always had the ability to woo business travelers to their rentals. 

But now that online travel agencies such as Airbnb, HomeAway, and TripAdvisor have gone mainstream, it’s easier than ever!

Let’s define a corporate rental as dwelling that’s lease directly to a company or a business traveler who has a housing allowance. If a company is paying for the rental, and not the tenant, then it’s a corporate rental. 

When a company pays their employees or contractors to work remotely, then that tenant: 1 – Will behave and not embarrass their employer

2 – Will have a binary attitude towards your rates. Either they are within their allowance, or they aren’t.

These two characteristics make business travelers the most lucrative and ideal people for your rentals.

The Opportunity

Business travelers find that with short-term corporate rentals, they are able to afford more home-like conveniences for less. They are able to cook healthier, have more privacy, and have a richer travel experience when they don’t stay at a hotel.

That’s why the trend in corporate housing is spiking. Especially when a traveler is on an assignment for 30 days or longer.

Extended stay business travelers actively search for houses and apartments to live in. Many want to live in neighborhoods and not off freeway offramps.

Now, is it possible that you could furnish a rental to accommodate corporate travelers? Could you earn hotel- ... Read More…

I don’t want to be a buzz kill…

…but there’s too much mushy thinking in the short-stay space. 

So much so that I see short-stay landlords acting like home-sharers — and having a lot of fun doing so.

However, if you check their bottom lines, you’ll see they aren’t doing much better than passive landlords. And doing extra work without capturing extra income is not the way to run a for-profit business.

As a foaming-at-the-mouth Airbnb-er since 2011, one who is both a provider and user with stays all over the United States, let me offer a bit of structure.

Three Short-stay Business Models 

You need to be crystal clear about which type of short-stay business you’re operating.

The table below summarizes the financial goals of the three models

Each business model has its own unique mode of operation, expected level of service, and

acceptable rate of return. You’ll notice, however, that only short-stay landlords have profit as a goal.

So, if you’re a home sharer or vacation rental provider, you can stop reading here. What follows is not intended for you (although you might find it interesting — so keep reading). 

If you’re a landlord considering a short-stay business, you should follow these “do’s” and

“don’ts” to avoid costly mistakes and become more profitable than a typical landlord.

The following is for rental owners that choose to provi ... Read More…