When you hear the term “corporate housing,” you may immediately think of the types of short-term rentals offered by platforms such as Airbnb. However, corporate housing is quite different from Airbnb, according to business expert Brian Ferdinand in a recent article. Let’s explore what makes corporate housing a more valuable model compared with Airbnb.
In the recently published article, Brian Ferdinand, the managing partner of SoBeNY and its parent company, CorpHousing Group, emphasizes thatcorporate housing is an industry that is well organized. Rather than being based on a peer-to-peer platform like Airbnb is, corporate housing units are owned by established companies that offer valuable services to people who need temporary housing, including traveling employees and their employers. Corporate housing providers also benefit the local economies in which they operate.
Legislators have recently raised issues about not being able to collect taxes properly when dealing with models like Airbnb. However, the providers of corporate housing stay on top of paying hotel occupancy taxes. In addition, they abide by established tax codes and zoning laws. They additionally follow safety and health codes, as well as local regulations pertaining to minimum-stay restrictions. Thus, they add value to communities rather than detracting from them.
Unlike with Airbnb, where guest turnover tends to be high, corporate housing generally doesn’t experience frequent guest changes. That’s because corporate housing provides typically require their guests to stay with them for at least 30 days. In fact, the average corporate housing stay is actually a little more than three months. This is much longer than the six-night average stay for Airbnb rentals. The longer stays associated with corporate housing translate into more stability for neighbors and thus a more secure situation for local neighborhoods.
In addition, the clientele associated with corporate housing tend to be of a higher caliber compared with those linked to Airbnb.
Airbnb clients are usually short-term vacationers. Unfortunately, this model has a tendency to attract bad behavior, as guests are poorly vetted. In addition, Airbnb homes can easily draw large gatherings, with property owners frequently dealing with over-occupancy issues. On the contrary, corporate housing clients are often professionals who are undergoing training, attending conferences, or moving with their families to other cities. Because they are staying in their rented units for work-related reasons and are also professionally vetted, they are less likely to pose issues for housing providers as well as the local communities they are staying in.