Hi,
Has anyone had any experience working with corporate housing. I live in the center (Capitol Hill) of DC and am looking to convert a townhouse into 3 separate units. Each unit could be rented to visiting businessmen for short term stays (3 months max).
The building is a block from the metro and could pull in a substantial income if done properly.
I have not noticed any posts on this topic, but it could truly be a lucrative market for certain urban areas. I am just looking for people who may be involved in this area.
I appreciate your help!
This would be like renting hotel rooms…in the DC area, a three-plex can generate pretty good cashflow on its own.
Who would be responsible for cleaning? Linen? Furniture? Etc…?
The big problem is payment (they will want to pay with corporate/government credit cards!) and constant churn and advertsing to keep it full…
Just my initial thoughts…
Keith
companies are famous for not paying their bills on time (not sure about US Gubermint) so you will need to spend timeon collections for sure.
also, if people stay less than 30 days, you might have pay “hotel taxes” and follow local codes related to hotels.
I’m sure there is money to made doing it, but it probably fairly time consuming as well.
Hi,
I do appreciate the help. I remember a previous post stating you had lived and invested in the DC area, Keith. You know the Hill area and I’m sure can see the profit potential.
I’m looking for minimum of three month stays, the state department clientele would be great tenants. To be honest it is not unreasonable to expect to make around 4k-4.5 a month off a one bedroom unit!
Do you think direct deposit could work in this situation, or paypal? I’m wondering what other services would be desirable, maybe things like high-speed internet access and a roof deck.
I wish I had 10 of these townhouses…thats gentrification for you.
Thats interesting. A company i consult for just tried renting corp housing in DC for people coming to work with FEMA during hurricanes.
The rates were through the roof. It turned out to be cheaper to stay in a hotel in DC. Actually Radisson suites were cheaper with pretty much the same setup.
Here’s some things to consider.
You will need daily maid service.
proximity to restuarants and stores.
wouldn’t hurt to stock some things for use, with a charge of course.
and surprisingly a big thing is cable adn internet. I have stayed in corp housing with no tv/cable or internet. Left and got a hotel after a couple of days.
Good luck