Have you ever thought about diversifying your property portfolio?
Or have you wondered how to maximise your rental returns?
According to a recent report from April 2023, 55% of renters still prefer to sign their lease physically, indicating a strong preference for a personal touch in the rental market.
Corporate accommodation is more than just another buzzword in the property market. It’s a growing trend reshaping how landlords think about their properties and tenants.
But what exactly does it entail, and why is it becoming so popular?
Let’s dive in and explore the world of corporate accommodation for landlords.
- Corporate accommodation provides unparalleled flexibility and convenience tailored for new build developers.
With evolving housing trends, Pluxa is a pioneer in offering top-notch corporate accommodation solutions.
10 Advantages of Corporate Accommodation for Landlords
Corporate accommodation stands out as a beacon of opportunity in the ever-evolving world of property rentals.
Let’s delve into the top advantages that make corporate housing a game-changer for landlords.
1. Higher Rental Returns
Offering corporate accommodation isn’t just about renting out a space; it’s about delivering an experience. This premium service allows landlords to charge higher rates. Not only do you benefit from increased revenue, but the consistent demand ensures this is a manageable advantage.
Furthermore, businesses often have budgets for such accommodations, ensuring timely payments. It means a steady cash flow without the usual rental hassles.
2. Stable and Reliable Tenancy
With corporate contracts spanning longer durations, landlords enjoy the luxury of predictability. Gone are the days of erratic tenancies. With corporate clients, you get stability and a consistent flow of income.
These contracts often come with early renewal options, ensuring the property is occupied quickly. Plus, businesses value continuity, making them less likely to shift frequently.
3. Reduced Vacancy Rates
Corporate tenants often commit for extended periods. This commitment translates to fewer vacancies and less downtime for your property. It’s a simple equation: longer tenancies equal more consistent revenue.
Additionally, word-of-mouth referrals from satisfied corporate tenants can reduce your empty property time. A win-win situation for landlords!
4. Enhanced Property Maintenance
Corporate tenants value their company’s reputation. This pride extends to their living conditions. With them, you’re more likely to find your property maintained meticulously, reducing wear and tear in the long run.
Moreover, many corporate agreements include maintenance clauses, ensuring that any wear and tear is addressed promptly. This proactive approach can save landlords significant repair costs in the future.
5. Networking and Business Opportunities
Housing corporate clients isn’t just a rental agreement; it’s a networking goldmine. The interactions can lead to potential business collaborations, investments, or even new ventures. Beyond the immediate rental income, these relationships can open doors to other lucrative opportunities, expanding your business horizons.
6. Flexibility and Customisation
Every business has its nuances. By offering tailored rental packages or flexible terms, you position your property as a top choice, ensuring it’s always in demand. This adaptability can make your property more appealing to a broader range of corporate clients, ensuring that you always have a steady stream of interested tenants.
7. Building Long-Term Relationships
One successful corporate tenancy can lead to another. Companies value reliability, and once they find a landlord who fits the bill, the relationship often extends beyond a single contract. Over time, this trust can lead to referrals, expanding your tenant base without additional marketing efforts.
8. Increased Property Value
Tailoring properties to meet corporate standards often involves upgrades. While benefiting the tenant, these enhancements also add to your property’s market value. Well-maintained properties with modern amenities often fetch a higher resale value, ensuring a profitable exit strategy.
9. Diversified Tenant Portfolio
Never put all your eggs in one basket. By including corporate clients, you diversify your tenant portfolio, reducing risks and ensuring a balanced income stream. The diversification can act as a safety net, ensuring that market fluctuations in one segment don’t drastically affect your overall rental income.
10. Positive Reputation and Reviews
A satisfied corporate client can be your best advertiser. Their positive feedback, especially in today’s digital age, can significantly elevate your property’s market standing. In an era where online reviews can make or break a business, positive testimonials from corporate clients can set you apart from the competition.
Landlord benefits of corporate housing extend beyond just monetary gains. It’s about building relationships, enhancing reputation, and ensuring a sustainable future in the rental market.
With so much on offer, it’s clear why more landlords are leaning towards corporate accommodation. But what does the future hold? Let’s journey ahead and see how you can join this rising trend.
The Future of Corporate Accommodation and How to Get Started
As we’ve explored, the benefits of diving into this niche are manifold, from higher rental returns to building long-lasting relationships with reputable corporate clients.
But how can you, as a landlord, tap into this goldmine? The answer lies in partnering with the right platform. Pluxa stands out as a beacon in this realm.
Offering a range of luxurious and affordable serviced apartments in Birmingham and beyond, Pluxa ensures that landlords and corporate clients find their perfect match.
Our commitment to quality, as evident from their elegantly designed apartments and top-notch amenities, makes them a preferred choice for many.
Moreover, with rave reviews from business travellers, long-stay travellers, and corporate clients, it’s clear that Pluxa understands the nuances of the corporate accommodation market. We not only provide the space but also the experience, ensuring that every stay feels like home.
So, if you’re a landlord in the UK looking to venture into corporate accommodation, there’s no better time than now. And with Pluxa by your side, you’re not just offering a property but an experience.
Why should landlords consider offering corporate accommodation for their properties?
Corporate accommodation is more than just a trend; it’s a response to the evolving needs of the modern business world. By offering such accommodations, landlords can tap into a lucrative market segment, ensuring higher rental returns, longer tenancies, and a steady stream of reputable tenants.
How can corporate accommodation lead to higher rental returns for landlords?
It’s all about understanding the value proposition. Corporate tenants seek properties that blend home-like comfort and hotel-like amenities. They’re often willing to pay more for properties that fit this bill. Additionally, corporate contracts tend to be longer, reducing vacancies and ensuring a consistent income stream.