Large organizations often hold or manage their own corporate apartments for individuals who are working or visiting a local office. This may include job candidates, employees, contractors, and other important guests. These staff accommodations provide a “home away from home”. Used as an alternative to other types of housing (hotels, Airbnb, etc.) corporate apartments are a convenient way to provide a safe and consistent corporate housing solution.
If a company owns a corporate apartment, they will manage it and make all arrangements for their approved tenants. This includes adjusting dates and any special requirements. While corporate housing companies operate on short-term leases with a minimum stay of 30 days, an owned corporate apartment has guests for however long or short as rent is generally not paid nor subject to local renting laws. In many cases, a trip may last only a few nights while others may be months-long. Rather than seeking out hotels for the former and corporate housing or a conventional apartment for the latter, a self-managed corporate apartment allows the company to have a fixed address year-round near the office. This also means less hassle for the tenant or candidate staying over who won’t need to pay any costs upfront like a deposit and other paperwork like a credit check. When self-managing a corporate apartment, the employer is in charge of check-in and check-out times, among other tenant conditions.
Self-managed and owned corporate apartments come with all the responsibilities of furnished housing, from decorating and maintenance to security and utilities. This requires more amenities than a standard hotel chain. Guests, such as employees, expect more than just the basics but to have an equipped living space for professional success while away. They are looking for all the things that remind them of home too. For example:
Owning or managing corporate apartments means having the necessary personnel and supplies readily available. It’s up to you to maintain a high-quality, positive experience. This is an added cost to the company to hire and maintain a full-time staff to coordinate logistics and to outsource cleaning and maintenance as necessary.
There are many reasons why organizations choose to use corporate apartments rather than booking all guests into hotel rooms. For a long-term stay, the savings that come with staying in an apartment over a hotel can be significant. According to Statista, the average current daily rate for all hotels in the U.S. is $134.52. At 30 days, this adds up to over $4000. While of course, it varies by locality and neighborhood, corporate housing will typically reduce costs and make for a more pleasant stay for employees.
Corporate apartments are a major plus when it comes to competing for top talent. Since many companies are recruiting across the country and globally, candidates will travel from other locations and need a move-in ready, safe place to stay while they are interviewing and considering a job offer. Companies such as Amazon, Boeing, Disney, Microsoft and many others are already using staff accommodation for their potential and existing employees.
Relocating employees from one region to another is much simpler with corporate housing. On short notice, they can move into a corporate apartment and stay for an indefinite period of time (until he or she finds suitable housing in the area). This is part of the employee relocation package, and the company picks up the tab. This is especially helpful in cities where it can be difficult to find rentals or homes for a duration of only a few months.
It can be a big responsibility to own or self-manage any corporate housing. The property itself may not be rented out 100% of the time. Regardless, they still need to be maintained, cleaned, and kept secure. Then, when they are being rented there are the various landlord responsibilities to consider. Certain organizations may not have the infrastructure to manage the daily tasks associated with operating an apartment and dealing with a steady churn of tenants. If major repairs, tenant problems, or an emergency occurs, it takes people and resources away from other business needs.
An alternative to owning and self-managing corporate apartments is to find a partner that can take over. For example, Blueground, a real estate tech company which rents out fully-furnished, equipped and serviced corporate apartments. They lease them to a range of professionals for one month, one year or even longer. Take the hassle out of managing things on your own and leave it in the hands of capable professionals who understand the unique needs of corporate renters. This can result in lower housing expenses (by renting on a “per month basis”) and a reduced strain on your relocation specialist or office manager. Most importantly, Blueground will make your employees’ business trip or relocation more pleasant and efficient thanks to its app integration and premium furnishings.
Owning corporate apartments does not need to be a stressful experience. With the right resources, it can be a convenient way to provide housing to your business guests and employees.