Maintaining Building Integrity With Corporate Housing

Any homeowner, or homeowners association knows that having empty or foreclosed properties in your building brings down the value of the remainder. Allowing those empty properties to become corporate rentals, or giving the tenants the ability to turn them into rentals can retain the integrity of the building and maintain values.

Many HOAs frown upon rentals. They are viewed as second-class properties and work to restrict them as much as possible. In a fair real estate market, this idealism is fine as it doesn’t restrict movement or values much and there is always a buyer around the corner.

This market is completely different and will always be so from now on. Renters are now the pre-eminent client, and corporate rentals are one of the few growth areas in real estate. Any HOA who doesn’t embrace the rental property is now not being fair to their tenants.

The old ways are gone. The drive to own a home is at its lowest and will take decades to recover. The American dream of the single family home with white picket fence is still there, but now we rent it, we don’t own it. The rental market is keeping the real estate market alive. Company rentals, or corporate lets are the life behind that.

Those HOAs who prohibit short-term rentals or renters are forcing foreclosures and lowering the value of their buildings. Allowing properties to be rented out to companies who want high quality accommodation for employees is a great way to maintain the building and prevent empty lots.

There are three main benefits for corporate housing.

One. Corporate renters can help keep occupancy rates high while offering few, if any, of the downsides rental properties can have. Most corporate renters pay good money, lease to high quality renters and generally use building managers to maintain the property. A well-maintained property not only provides benefits for the individual unit, but for the building at large.

Two. Three short-term renters create less wear and tear on a unit and the building than a longer term one. Long-term renters will move furniture in and out, may make changes they shouldn’t and will soon treat the property as their own. A corporate renter generally lives from a suitcase or two and changes nothing.

Three. Corporate renters are generally professionals. They are often slightly older, have families at home and responsible jobs. This is the perfect rental client for any kind of property. They aren’t likely to be party animals and are more likely to be responsible, courteous and respectful of their surroundings.

Allowing short-term lets for corporate rentals should be encouraged in every building that is suitable. Empty properties not only look bad, they are prone to decay, vandalism and lower the overall ambience and value of the building.

Everyone has had to alter their view as to what our real estate market looks like since 2008, HOAs have to do that too. If they are to serve their clients well, they have to consider the wider picture and consider allowing corporate rentals to keep the building afloat.