Furnished executive rentals cater to business professionals, corporate travellers, and relocating employees. In addition to providing a “premium home” experience for travellers, they are also rented and used as a tailored backdrop in the entertainment industry for filming. It is a niche market that is often overlooked but maintains consistent demand.
For real estate professionals, understanding this niche market and leveraging professional property management services can enhance their service offerings and portfolio.
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 who need temporary housing, making them an attractive option for business travellers and relocating employees.
Length of Rental and Tenant Types
Furnished executive rentals, commonly associated with medium-term leases, bridge the gap between short hotel stays and traditional rentals. These leases typically range from three to six months, though shorter or longer terms are possible based on the tenant’s specific assignment or relocation needs. The overall demand for executive rentals in a specific market and the availability of similar properties will impact the frequency and length of rentals, as well as rates.
Short-Term Leases (1 to 28 days)
Depending on where you live, you may likely need a license. Short-term rentals cater to:
- Business travellers on temporary assignments.
- Consultants working on short-term projects.
- Professionals attending training programs or conferences.
- Executives in interim or transitional roles.
Medium-Term Leases (1 to 11 months)
Medium-term rentals fill the needs of:
- Employees relocating for work who need temporary housing while searching for a permanent residence.
- Project-based workers on assignments lasting several months.
- Professionals on extended business trips or secondments.
Long-Term Leases (12 months and ongoing)
Long-term rentals are ideal for:
- Senior executives on long-term assignments.
- Employees on extended international relocations.
- Professionals who prefer the convenience of a fully furnished home for an extended period.
Leases for Film Crews
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. Lease lengths can vary significantly.
- The convenience of a fully furnished rental allows film crews to focus on their work without worrying about housing logistics. Rentals offering key amenities are ideal for professionals working long hours.
- Areas with high demand, such as Toronto, which consistently attracts numerous major film and television productions, will experience more frequent leases and higher rental rates.
Benefits of Offering Furnished Executive Rentals
Real estate professionals can advise clients who own suitable properties and are interested in renting about the various benefits of choosing this niche.
Higher Rental Income
Furnished executive rentals command higher rental rates due to the added convenience and amenities provided to tenants, significantly increasing revenue potential for real estate professionals.
Attracting High-Quality Tenants
Corporate clients and business professionals are typically reliable, responsible, and financially stable, leading to fewer issues with rent collection and property maintenance.
Vacancy Control
Having vacancy control allows property owners to avoid the complications of long-term tenancies. This flexibility simplifies the process of vacating units when needed, ensuring owners can respond quickly to market changes, perform maintenance, and select the best tenants without being locked into restrictive lease agreements.
Challenges of Furnished Executive Rentals
Initial Investment
Setting up a furnished executive rental requires a significant upfront investment in high-quality furniture, appliances, and other essentials. Real estate professionals need to carefully budget and consider the return on investment.
Maintenance and Upkeep
Furnished rentals require regular maintenance and updates to keep the property appealing to tenants. Frequent tenant turnover can lead to increased wear and tear on furniture and appliances. A partnership with a property management company that has experience in executive, furnished properties can help ensure everything is kept to an adequate standard.
Marketing and Management
Successfully managing a furnished executive rental involves effective marketing and efficient property management, specifically tailored to the right audience. This can be time-consuming and may require specialized skills.
Leveraging Professional Property Management Services
In addition to tenant screening, compliance support, and other standard services provided by general property management, a company specializing in furnished executive rentals can offer comprehensive furnishing solutions. This includes everything from purchasing furniture to fully setting up the property.
These specialty services also take care of regular maintenance and updates, ensuring the property remains in top condition. They handle repairs, replacements, and cleaning, providing a hassle-free experience.
They also have the expertise and connections to market furnished executive rentals effectively. They use various platforms, including corporate housing websites and relocation services, to reach potential tenants and maintain high occupancy rates.
Partnering with the Right Property Management Service
Partner with a property management service with extensive experience in managing furnished executive rentals. Check their reputation through reviews, references, and industry credentials. Ensure it offers a comprehensive range of services, including furnishing, maintenance, marketing, tenant screening, and legal compliance.
Additionally, choose a property management service that maintains clear and open communication. They should provide regular updates on the property’s status and be responsive to any concerns or queries.
Expand Your Real Estate Service Offerings
Real estate professionals should keep these types of rentals in mind when guiding clients. By partnering with or referring professional property management services that are experienced in this niche, realtors can enhance their service offerings, providing better client service and increasing their scope.
About the Author
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 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 owners interested in opportunities to supplement their Airbnb income, Marco Property Management manages longer stays and facilitates leases to their clients in the film industry for the rest of the year. They manage longer beautifully furnished homes for 28 days or more but less than a year, ideal for the needs of executive relocations and the film industry while they work on a project. For exceptional accommodation solutions, contact Marco Property Management.
- How to Market Furnished Executive Rentals to Corporate Clients - August 28, 2024
- The Benefits of Partnering with a Professional Furnishing Service - August 28, 2024
- Everything You Need to Know About Furnished Executive Rentals - August 2, 2024
