We’re continuing our blog series to share key findings from the 2011 “By Owner” Corporate Housing Report, an annual survey sponsored by CHBO to better understand the “by owner” rental marketplace. The latest report was released in January 2012 based on 2011 trends.
How do you protect your property from potential loss? How do you entice a company or tenant to rent your property when a deposit is required, when these travelers can stay in hotel housing without having to pay those types of fees? It’s essential to understand what the industry standards are – and how to protect yourself without losing a great potential renter.
In 2011, the general trend in the “by owner” community was for an increase in security deposits − especially for deposits greater than one month’s rent.
While only 10% say they do not collect a security deposit, the large majority of landlords do. 31% say they collect one month’s rent as a refundable security deposit, while others collect $100-$500 (22%) and $500-$1000 (26%). These figures are on par with general corporate housing trends. According to a Corporate Housing Providers Association (CHPA) Industry Survey, some full-service, corporate housing companies do not charge security deposits. If they do, the average fee is $646.
Pet Security Deposits
On another note, we are seeing more and more long-term business travelers arriving with pets in tow. In fact, 50% of survey respondents say they accept some type of pet in their corporate rental property. And of those who accept pets, 73.8% say they take pets because it gets their properties rented.
In addition, we asked survey participants how many days their property had rented with a pet. We also asked whether a pet had damaged their property.
- 19.6% of respondents rented their property with a pet for 31 to 90 days;
- 10.7% rented 90 to 180 days; and
- 12.2% rented for 180 to 365 days.
Of these rentals, 6.9% reported “a lot” of damage, 15.8% reported “a little” damage, and the majority reported no damage at all.
According to the 2011 CHPA Industry Survey, the average pet fee for full-service, corporate housing companies is $268, and the average pet deposit is $348. For respondents to the “By Owner” survey, the average, non-refundable, one-time pet fee is $144. (It’s generally applied to a special departure clean needed to eliminate hair and odors). The average pet refundable deposit is $342.
Travel and Deposit Insurance
We believe travel and deposit insurance may be a future trend worth watching. While only 6.8% of respondents said they offer travel and/or deposit insurance, we have a feeling things will dramatically change in this arena in the years to come. CHBO now offers these services to by owner landlords, something new in 2012.
To read more about these results, download the full “By Owner” Corporate Housing Report online at http://www.corporatehousingbyowner.com/pdf/2011_CHBO_Report_FINAL.pdf