There's no doubt the Portland, Oregon market is hot right now and there are tens of thousands of people moving to the city each year. We run across a lot of people that are moving up from California or down from Seattle that are in need of housing. We recently purchased a four-plex which needed a light rehab. It's a fantastic location and the place oozes with charm. We decided that we wanted to experiment and have decided to turn the units into short term corporate rentals (30 days or more) that are fully furnished.
We are just now starting to see the light at the end of the tunnel after completing the rehab and now the furnishing. What I have picked up so far is that furnishing units is NOT cheap. I'm ready to get things things up and performing and I was curious if anyone out there doing corporate rentals could share some inside tips and tricks on how to get your units filled up.
I can't say that I have any experience with this concept. I've read about it of course. It would make a great case study if you don't mind sharing. I'd love to hear your story. There's not alot posted in the portland area. Just a thought. Take care
@Neal Collins I was under contract on a 7 unit property where several of the units were short term furnished rentals. The owner had 50+ units in the same town at various locations that were mostly furnished short term rentals. The deal ended up falling apart but we chatted quite a bit throughout the process.
His marketing tactic was to simply list on Craigslist and have a website....that's it! He said that there was limited competition and he never had trouble leasing a unit. The website is shortstayok.com
Keep us all posted on how your project goes as I, like others, are very interested to see how this goes.
@Neal Collins , Another option, if you can't fill all units with corporate, would be to rent any vacant units as vacation rentals . . . that is if you are in a decent location to Downtown.
I'm not sure if this applies to your area but I have found the manufacturing facilities and nuclear plant have scheduled shut downs for maintenance and often time bring specialized crews in to preform the work. I know Duke Energy has maintenance shutdowns where the corporation rents housing on a monthly basis each year. Just another avenue to fill the vacancy
Best of luck!!
I'm not sure if its taboo here on BP, but have you thought of AirBNB or VRBO? I know AirBNB gets a solid amount of professional traffic.
Otherwise, I agree with the website idea along with craigslist, and you might also reach out to area recruiters. They often help setup new moves with temporary housing and could fill some of your vacancies.
@David C. undefined I'm more than willing to share the story behind the rentals. Better yet, if you ever want to come check them out they are on the east side close in.
@Randy Johnston We're toying with the ideas of vacation rentals, however, zoning code is a bit restrictive in PDX for multiple units in a building going to rentals under 30 days. We're going to keep our minds open though.
@Grant Fosheim Glad to hear that it worked for someone else! We had some ads up on Craigslist but it was during the rehab stage and so the pictures posted were renderings. We're finally at a point where we have photos and can start hitting CL a bit more diligently. Thanks for sharing and sorry to hear that the deal didn't go through on that complex.
@Travis Lloyd Great idea about area recruiters! Thanks.
This is indeed a subject that is of significant interest to me. We have some coastal properties that I was thinking about doing the same thing with albeit a bit differently. My concept was to try and locate (perhaps the local recruiter idea is worthy) one local company in the tech or bio med/chem field as they are very pervasive in this market.
I would then work with them on a more exclusive basis in order to better maintain a more qualitative and responsible single tenant who would perhaps be more diligent inasmuch as they would be the exclusive lessee/renter.
I'm a little dubious about multiple renters because of local vacation rental ordinances and restrictions. However, leasing to one major corporation who would in turn make our properties available to their employees, clients or guests would circumvent any short term vacation rental concerns I think.
@Neal Collins Another thought somewhat in line with the recruiters idea is to go to some of the major companies in your area who do have corporate traffic in and out, and talk to the HR department. HR is usually who would handle reservations for out of town business accommodations.
If you have the time to do this I would definitely give it a go. Just pop in with a small packet you can give them, include Pictures of your units, Rates, Minimum stay time, and an easy way to contact you. Give them a brief speech about the service you provide, and get on down the road. If you can establish a relationship with just one or two of them you will never need to worry about vacancy again.
@John Arendsen I've been told by a couple other people that do corporate rentals in other cities that all it takes is one good corporate client to foot the monthly bill and you're set. I think it's a great strategy and will really start targeting corporations in the method @Kevin Harrison mentioned (which is awesome by the way. Thank you for the binder idea!)