Pros and cons of corporate accommodation vs short term holiday rentals
Airbnb. Booking.com. Stayz. Expedia. Let’s be real, short term letting in Australia is big business, and many property investors have reaped the rewards of the sharing economy by turning their properties from low yield long term rental income plays to turbo charged holiday letting properties on a wild rollercoaster of fluctuating nightly rates and occupancy stats.
Most property investors think it’s one or the other. Column A or Column B. A simple binary choice, albeit complicated by the myriad of options within each (especially Colum B, with self-managed vs outsourced, year round or holiday periods).
There is another option, although it is unavailable to many and difficult to come by; Corporate Accommodation. Typically the reserve of the serviced apartment players such as Meriton and Quest, some lucky property owners dabbling in short term holiday letting get the occasional corporate client their way, booked by an independent employee or a budget conscious EA who wanted something different so ventured onto Airbnb to try and grab a bargain. These are usually the dream tenants, happy to pay more for a better standard (as long as it’s within their travel budget!) and usually respectful and quiet due to either busy work schedules or fear of retribution from the company footing the bill should anything go wrong.
So how does the average property investor make their nest egg available only to these types of clients, who will pay more and be respectful without running the risk of opening up their doors to a group of partying backpackers? Airbnb certainly punishes the discerning host for being selective, with their algorythims heavily favouring those who allow instant booking, and penalising those who dare cancel.
Urban Rest Apartments is offering high-quality property-owning individuals the opportunity to open their doors exclusively to corporate clients, typically for bookings of 6 to 8 weeks, generating higher income and lower risk for your property. By quality controlling every property that is included in our platform and managing the guest experience end to end to ensure it meets the standard of a 5 star hotel, we have been able to sign up a host of corporate clients, many of which as their exclusive provider of medium to long term accommodation.
Is there a caveat? Sure there is. We won’t get you the eye-watering prices for that one off weekend like Mardi Gras or an Ashes game where travellers are willing to sell their soul for a place to sleep. But over the long term (and to be honest probably over the short term), we’ll deliver higher steady returns by taking in longer term corporate bookings with much lower risk to your property (and reputation with your neighbours). Our average booking length is 45 nights, with many of our clients looking for fully furnished properties for periods ranging from 3 to 12 months. Our average returns for our clients are 50-80% above the long term rates they were quoted on their properties (after our fees!). Although with a portfolio wide occupancy rate above 90% due to the demand for our quality products, it’s really not that surprising.
I’m not here to bash the competition, short term booking platforms fill an incredible void for people wanting to generate some extra income from their homes during peak seasons or while absent and have generated a huge amount of additional value to both the tourism economy as well as to individual home owners.
But while traditional short term vacation rental managers post your property across the existing channels and sit back and hope someone picks yours out from among a crowded space, we actively go chasing our clients, offering corporates hotel standard accommodation with the space and amenities of a full sized apartment or house at a cost lower than any of the traditional serviced accommodation players.
Urban Rest Apartments is different. We don’t use traditional channels. We ARE the channel. We’re connecting corporates directly with individual property owners, by making sure that executives get the quality they require and that property owners get the returns they deserve.
If you think your property might be suitable for own platform, get in touch at firstname.lastname@example.org today and one of our representatives will contact you as soon as possible to carry out an initial screen and see if you can get on track to maximise your properties potential.