Corporate Leases: Are they worth it?

Question

I was wondering if anyone is making a decent dime on corporate housing. We just bought our primary 4/3.5 in a nice gated community about 20 min outside the hustle and bustle. Tbh it's probably more than we needed but the numbers worked out, especially with the near zero interest rate we got in March ($1800/mo).

I'm looking to make my first BRRRR purchase here in a few months and have really been looking into house hacking meaning we'd move out of here and into there. Obviously we've only paid down about $11k of our mortgage so selling it right now wouldn't make dollars and sense.

I've been thinking about possibly turning our home into unfurnished corporate housing that I'd manage myself or use a company to get my foot in the door. I have no idea what that entails but it's a HUGE industry here in Houston because of our local economies. Any thoughts, suggestions, dire warnings?

Kristyn Grimes · Answer

Hi Michael,

so that's a really great point to use the DUNS number. I vaguely recall having to look those up way back in the day when I started working with international firms to see whether or not they had a decent enough rating for us to do business with. That's a great point!. I'll also need to look up the market average and probably find some more folks who do the corporate leasing here in Houston. It's inevitable that every time I post a question about something there's 10 other avenues I didn't think about. I guess that's why we're all here.  Thanks again!

Michael Robbins · Answer

@Kristyn Grimes Do corporate rentals do better there?  Better than the general market?  Here in Vegas if a corporation is looking to rent I require a D-U-N-S number.  I have had fellow property managers fall victim to fake corporations taking out a lease.

Kristyn Grimes · Answer

Thank you so much, Patricia! Since I'm not really well connected in the HR department for the oil and gas folks around here I figured that would be my biggest obstacle. Thanks again!

Patricia Steiner · Answer

Covid has sent a lot of people home.  And, corporate housing is generally furnished to allow someone to come into a new city and go to work immediately.  You would need to network with HR professionals in your market for referrals since they generally are the ones who arrange for those contracts.

Do your homework...it would not be the play I would make.