Investor · Denver, CO · Member since 2016 · 32 posts · 5 votes
Hi!
I am wondering if we should switch a long term property to a corporate rental. I wouldn't call it luxury inside, but it could easily be reno-d to be higher end. We own the building and there are long term units inside. I know corporate rentals make more $$, but how vacant are they?
Has anyone done this in Denver? The place is a 2 BR and 1 bath condo, in a great walkable area.
@Bill S. is right. My wife and I do corporate rentals with a few spaces in Denver and are about to partner with some other folks to buy a few more. I definitely got some of our initial inspiration from @Micki M. said, the occupancy rate is going to depend on your location. You say in you're in a walkable area? Where exactly in Denver? That's going to be huge. After that, the biggest factors are your furniture, the staging of the space, and good photos. Do all of those and be in a good neighborhood and you're going to have no problem getting booked.
To give you an idea, my and my wife own two small spaces in Capitol Hill.
One is an 800sf 1-bedroom unit rented for $1,900. I think we'd be getting $1,300-$1,400 as an unfurnished long-term rental.
The other is a 350sf studio rented for $1,700. I think we'd get $1,000 as an unfurnished long-term rental.
I once had two weeks vacancy on the 1-bedroom, which was largely due to laziness on my part. The studio is always full. I would buy studios all day for this reason. The 1-bedroom doesn't seem to draw much more. A 2-bedroom, though, might be another bump in revenue.
Rental Property Investor · Arlington, TX · Member since 2016 · 706 posts · 611 votes
9y
Hello Cameron!
Vacancy depends on the economy of your area or how close you are to a hospital. Traveling nurses are your biggest target when it comes to corporate rentals. I've been doing corporate rentals for about 6 months and I'm always either getting an inquiry or have a tenant. I currently have a tenant until November but have 3 people that want to book as soon as my tenant checks out. You can get really good tenants by posting your rental on CHBO, Airbnb, and Homeaway. On Airbnb and Homeaway just remember to put your minimum night stay to 30 days and you will get more people inquiring about your rental on a long term basis. Most of my inquiries come from CHBO though. These are more reliable tenants anyway because they are usually the traveling nurses or insurance companies calling to put one of their clients in your rental. A 2br 1 bath condo could be a cash cow in your area. 2br 1 bath go for about $2500 - $3000/mo in my area.
Rental Property Investor · Denver, CO · Member since 2013 · 4k+ posts · 2k+ votes
9y
@Cameron K. I know some folks have done or are doing corporate rentals. @James Carlson is currently doing them. @Micki M. has done it in another area and has written a book about his experience.
@Bill S. is right. My wife and I do corporate rentals with a few spaces in Denver and are about to partner with some other folks to buy a few more. I definitely got some of our initial inspiration from @Micki M. said, the occupancy rate is going to depend on your location. You say in you're in a walkable area? Where exactly in Denver? That's going to be huge. After that, the biggest factors are your furniture, the staging of the space, and good photos. Do all of those and be in a good neighborhood and you're going to have no problem getting booked.
To give you an idea, my and my wife own two small spaces in Capitol Hill.
One is an 800sf 1-bedroom unit rented for $1,900. I think we'd be getting $1,300-$1,400 as an unfurnished long-term rental.
The other is a 350sf studio rented for $1,700. I think we'd get $1,000 as an unfurnished long-term rental.
I once had two weeks vacancy on the 1-bedroom, which was largely due to laziness on my part. The studio is always full. I would buy studios all day for this reason. The 1-bedroom doesn't seem to draw much more. A 2-bedroom, though, might be another bump in revenue.
Investor · Denver, CO · Member since 2016 · 32 posts · 5 votes
9y
The condo is in Lower Highlands just a few blocks from Linger restaurant. Long term rent is $1800. Not sure if it's going to make much more than that on corporate. I'm prepared for the upfront costs of setting it up. Do you think corporate requires updates like granite counters, and stainless? Also wondering if there is a need for 2 BR corporate rentals with most guests not willing to share space. I can see how the studio and 1BR would fly well!