Furnished executive rentals cater to business professionals, corporate travellers, and relocating employees, offering a premium home experience. This niche market, though often overlooked, enjoys consistent demand and presents a valuable opportunity for real estate investors to diversify their portfolios.
What Are Furnished Executive Rentals?
Furnished executive rentals are residential properties fully equipped with furniture, appliances, kitchenware, linens, and utilities, designed for short to medium-term stays. These rentals provide a turnkey solution for corporate clients needing temporary housing, making them attractive for business travellers and relocating employees.
Rentals offering key amenities are ideal for professionals working long hours.
Rental Lengths and Tenant Types
Short-term leases, typically ranging from one to 28 days, cater to business travellers on temporary assignments, consultants working on short-term projects, professionals attending training programs or conferences, and executives in interim roles. These leases are ideal for professionals who need temporary accommodation without the commitment of a longer stay.
Medium-term leases, which last from one to 11 months, serve the needs of employees relocating for work who require temporary housing while searching for a permanent residence. They are also suitable for project-based workers on assignments lasting several months and professionals on extended business trips or secondments. This lease length offers the flexibility needed for longer – but still temporary – stays.
Long-term leases, extending beyond 12 months, are perfect for senior executives on long-term assignments, employees on extended international relocations, and professionals who prefer the convenience of a fully furnished home for an extended period. These leases provide stability and comfort for tenants requiring longer-term accommodations.
Furnished executive rentals are also popular in the entertainment industry, providing housing for film and television production crews while filming. Properties near production studios or common filming locations will see higher demand. The convenience of a fully furnished rental allows film crews to focus on their work without worrying about housing logistics.
Benefits
Investing in furnished executive rentals offers several benefits. Firstly, these properties command higher rental rates due to the added convenience and amenities, significantly increasing revenue potential for investors. This makes them a lucrative option for those looking to maximize their rental income.
Additionally, corporate clients and business professionals are typically reliable, responsible, and financially stable, leading to fewer issues with rent collection and property maintenance. Attracting high-quality tenants ensures a steady income stream and reduces the likelihood of problematic tenant situations.
Furthermore, the flexibility of furnished rentals allows property owners to avoid the complications of long-term tenancies. This simplifies the process of vacating units when needed, responding quickly to market changes, performing maintenance, and selecting the best tenants. This vacancy control is a crucial advantage, providing investors with the ability to manage their properties more effectively.
Challenges
Despite the benefits, there are considerations to be aware of. Setting up a furnished executive rental requires an upfront investment in high-quality furniture, appliances, and other essentials. Investors need to carefully budget and consider the return on investment to ensure profitability. Certain features, like a modern kitchen, tend to offer a higher ROI, so careful planning can ensure money is used effectively.
Furnished rentals also require regular maintenance and updates to keep the property appealing to tenants. Wear and tear on furniture and appliances needs to be addressed to meet the high expectations of tenants. Partnering with a property management company experienced in executive, furnished properties can help maintain standards and manage these challenges effectively.
Managing a furnished executive rental involves effective marketing and efficient property management tailored to the right audience. This can be time-consuming and may require specialized skills. Investors must be prepared to invest time and effort into managing these properties or consider hiring professionals to handle these tasks.
Executive furnished property management companies offer comprehensive services for these types of rentals. These services include tenant screening and compliance support, furnishing solutions – from purchasing to set up – and regular maintenance, repairs, replacements, as well as cleaning. These companies can also market the rentals effectively through various platforms to reach potential tenants and maintain high occupancy rates.
Investors should select a company with extensive experience in managing furnished executive rentals. The property management service should offer a comprehensive range of services to meet all needs. Clear and open communication is essential, with regular updates on the property’s status and responsiveness to any concerns or queries.
Investing in furnished executive rentals allows real estate investors to capitalize on a niche market with consistent demand, high rental income potential, and opportunities for portfolio diversification. By understanding the benefits and challenges, and leveraging professional property management services, investors can maximize their returns and expand their real estate investment portfolios effectively. This niche offers a unique and profitable avenue for those looking to enhance their real estate investments.
Marco Property Management offers over 20 years of property management experience, ensuring owners’ properties are cared for as if they were their own. Their extensive network and advanced platform provide seamless tenant placement, rent collection, and maintenance services.
For property owners interested in opportunities to supplement their income, Marco Property Management manages longer stays and facilitates leases to their clients in the film industry. They offer furnishing services and manage beautifully furnished homes for 28 days or more but less than a year, ideal for the needs of executive relocations and the film industry. For exceptional accommodation solutions, contact >Marco Property Management.
Ben Ghebrezghi is the General Manager of Marco Property Management. He has a Business Administration and Management degree from the University of Guelph-Humber and is an accomplished property manager with experience in commercial, condominium, and residential real estate. Marco Property Management offers furnishing services with two-week delivery and setup and a bespoke design process. It provides customizable design packages and handles everything from setup to cleanup to ensure picture-perfect and move-in-ready spaces.
As part of its response to Canada’s ongoing housing challenges, the federal government has added another 12 new properties to the Canada Public Land Bank,...
As part of its response to Canada’s ongoing housing challenges, the federal government has added another 12 new properties to the Canada Public Land Bank,...
