Multifamily Florida - Summer 2011 - (Page 18)

FEATURE Smart Marketing by Partnering With Corporate Housing Companies when we call. Because we are in similar businesses, we can expedite the leasing process and cut down on your workload, which means you have more time for other things. CHPs sign leases on a daily basis and don’t require the additional time that is typically spent on walking through a lease with an individual prospective renter. Additionally, CHPs rents are always paid on time, which means no three-day notices and chasing down rental payments. turn costs are very low or nonexistent. Turn clean costs are also something that you can request or negotiate for with a CHP upfront, which would negate any loss on a turn clean. CHPS TAKE CARE OF PAYING TAXES ON SHORT-TERM LEASES For example, in the state of Florida, any lease under 181 days requires that state and local taxes be collected.* CHPs will provide the apartment properties that we work with a tax resale certificate, which means the property has no liability to pay taxes on these short term leases. by Patrick Collins Avenida Suites F orming an excellent relationship with Corporate Housing Providers (CHPs) is a smart alliance because of how valuable a partner you can gain to lease up your property and keep it that way. There are approximately 61,280 corporate housing units occupied every day, paying one billion dollars in annual rent. This is a huge revenue stream to tap into! As Vice President of Business Development for Avenida Suites, headquartered in Tampa, Florida, I attended a meeting with other area corporate housing providers and property owners and managers. The reason for the meeting was to encourage better communication between these two groups and some very interesting points and ideas were shared. After hearing some of the thoughts from the property management perspective, I put together the top five reasons why partnering with a CHP is a smart move for those who own/rent apartment properties. MAKE MORE MONEY WITH CORPORATE HOUSING CHPs typically pay market rent and, in many cases, pay a premium for shorter term leases. Although we often ask for deposits to be waived, we do pay administrative fees, which means leasing agents still receive their commission and the leases are still “on the books” for bonuses. When good communication occurs between the property and the CHP, and there is a good process in place, it makes for a very beneficial relationship. Corporate housing companies love properties that work with them and the properties will see more leases because of it, which means more revenue for the property. CHPs will target and market the communities that are easiest to work with! Many times, a CHP will start with a short-term lease, and those leases will keep extending, starting at 3 months and turning into 2 and 3 year leases! WE SCREEN OUR RESIDENTS The CHP will provide the apartment community with, at the minimum, the guest’s name and contact information. If any property requires a resident screening, make sure you add that to the checklist when working with CHPs. Most CHPs are happy to provide this information and pay for the costs associated with the screening. From the CHP perspective, we look for properties that offer a few different things: *Well maintained properties in good locations. *Three-month lease terms - some properties prefer that the CHP sign a 12-month lease with a 90 -ay minimum commitment with a 30-day notice requirement. *Capable maintenance staff so that resident issues are handled promptly. MAKE TURN CLEANS EASIER AND LESS EXPENSIVE As a rule, CHPs, like any other resident, are always responsible for any damages beyond normal wear and tear. Many CHPs send in housekeepers after vacating a unit to do a turn clean, so WORKING WITH CORPORATE HOUSING IS EASY! Working with corporate housing takes less work. Apartment communities that work with CHPs on a regular basis love it 18 l MultifamilyFLORIDA l SUMMER 2011 HOW TO CREATE A CHECKLIST FOR WORKING WITH CORPORATE HOUSING COMPANIES There are some very important things to look for in a CHP to ensure that you are continued on page 22

Table of Contents for the Digital Edition of Multifamily Florida - Summer 2011

President Message
Legislative Update
Market Report
In the News
HUD’s Office of Healthcare Programs Making Progress in Delivering Senior Housing and Healthcare Loans More Efficiently
Is It Just Me, Or Does Everyone Seem Angry These Days?
Smart Marketing by Partnering With Corporate Housing Companies
Injuries on Your Property
Product/Service Council Directory

Multifamily Florida - Summer 2011