Interest in real estate investing has skyrocketed in recent years due to this field’s many benefits. For instance, property investing can generate passive income, leverage, diversification, tax advantages, and stable cash flow. The question is, what specific area of real estate investing should you choose?
Here’s a look at why corporate housing is a smart niche area of real estate investing, according to business aficionado Brian Ferdinand in a recently released article.
THE APPEAL OF CORPORATE HOUSING
Some aspiring real estate investors have chosen to start investing with the help of Airbnb. With this model, they rent out properties to vacationers looking for places to stay for two to three nights, for example.
The problem with this investing model, however, is that if you extensively use Airbnb rentals, this will dilute the luxury experience you’re aiming to provide with your properties.
This can, in turn, end up devaluing your properties over time.
On the flip side, the corporate housing model allows you to house vacationers or business travelers for several weeks at a single time.
This type of longer-term housing is attractive to both professional and leisure travelers because it offers a comfortable “home base” for them when they are away from home, says Brian Ferdinand, who is the managing partner of CorpHousing Group.
In this way, corporate housing offers your guests the enhanced local experiences they crave. As a result, you can be confident that your investment will remain a strong, in-demand one over the long haul.
ADDITIONAL ADVANTAGES OF CORPORATE HOUSING
Yet another reason to invest in corporate housing is that employers who use corporate housing firms typically know all that there is to know about them. Thus, they have experience with dealing with today’s property investors.
This is not always true for individual tenants or constant travelers who use Airbnb, for example. Therefore, if you use Airbnb as an investor, your guests may constantly follow up with you on various matters. Unfortunately, this will take extra effort and time on your part—time and effort that you could be pouring into other investment opportunities.
Overall, a corporate housing investment strategy can help you to boost your property values and generate the cash flow you need to keep running your business and even expand it when the opportunity presents itself. Providing corporate housing is therefore a no-brainer for investors who wish to build their wealth both now and in the years ahead.