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How to Start a Corporate Housing Business Even If You Have No Experience

How to Start a Corporate Housing Business

A corporate housing business offers fully furnished temporary housing solutions primarily tailored to corporate clients, professionals, and travelers needing accommodations for extended periods.

These residences typically include apartments, condominiums, or houses equipped with amenities such as furniture, kitchen appliances, utilities, and internet access.

Corporate housing appeals to business travelers, relocating employees, and individuals seeking a home-like atmosphere during extended stays, offering more space and comfort compared to hotels.

According to a report by Allied Market Research, the global corporate housing market was valued at $35.4 billion in 2020 and is projected to reach $50.9 billion by 2027, with a compound annual growth rate (CAGR) of 5.4% during the forecast period.

Steps on How to Start a Corporate Housing Business

  1. Conduct Market Research

Conducting market research for a corporate housing business involves several key steps. First, you need to start by clearly outlining what you aim to achieve with the market research. Identify key questions you need answers to, such as target demographics, preferred locations, pricing expectations, etc.

Next, you are expected to determine the demographics and psychographics of your target audience. This may include business travelers, corporate relocations, interns, or vacationers needing long-term stays.

Study existing corporate housing providers in your target areas. Analyze their offerings, pricing, occupancy rates, customer reviews, and any gaps in services they may have.

Conduct surveys or interviews with potential customers to gather insights into their preferences, needs, and pain points.

This can be done through online surveys, focus groups, or one-on-one interviews. Assess the demand for corporate housing in specific locations.

Factors to consider include proximity to business centers, transportation options, local amenities, and rental market dynamics.

Evaluate the financial viability of your corporate housing business. Determine potential revenue streams, operating expenses, and projected occupancy rates to assess profitability.

Lastly, develop a marketing strategy based on your research findings. Identify the most effective channels to reach your target audience and promote your corporate housing business.

a. Who is the Target Market for Corporate Housing Business?
  • Professionals who frequently travel for work and require temporary accommodations for extended periods.
  • Employees who are relocating for job assignments or projects and need temporary housing until they find a permanent residence.
  • Individuals on short-term assignments or contracts who need housing solutions for the duration of their project.
  • Students or young professionals participating in internships, training programs, or educational exchanges who need housing for a few months to a year.
  • Families undergoing relocation or transition phases, such as home renovations or insurance-related displacements, who seek furnished housing options.
  • Government employees, military personnel, or contractors who require accommodations during official assignments or deployments.
  • Doctors, nurses, and other healthcare professionals on temporary assignments, rotations, or locum tenens placements who need housing near medical facilities.
  • Travelers seeking long-term accommodations for leisure purposes, such as extended vacations or seasonal stays.
b. Is Corporate Housing Business a Profitable Business?

Yes, the corporate housing business can be profitable. The global market was valued at $35.4 billion in 2020, projected to reach $50.9 billion by 2027 with a 5.4% CAGR.

Factors like increased business travel and demand for flexible accommodations contribute to its profitability. However, success depends on factors such as location, target market, competitive offerings, and effective management strategies.

c. Are There Existing Niches in the Industry?

No, there are no existing niches when it comes to the corporate housing business.

d. Who are the Major Competitors?
  • Oakwood
  • National Corporate Housing
  • BridgeStreet
  • Furnished Quarters
  • Stay Alfred
  • Premier Corporate Housing
  • ExecuStay
  • Compass Corporate Housing
  • Blueground
  • Zeus Living
  • Churchill Living
  • HomeSuite
  • Corporate Housing Associates
  • SuiteAmerica
  • AKA
  • AvenueWest
  • WaterWalk
  • Landing
  • V-Suites
  • Synergy Global Housing.
e. Are There County or State Regulations or Zoning Laws for Corporate Housing Business?

In the United States, regulations and zoning laws for corporate housing businesses vary by county and state. Zoning laws typically dictate the permitted land use for properties, including whether they can be used for residential, commercial, or mixed purposes.

Corporate housing, which falls under temporary lodging or short-term rentals, may face zoning restrictions in certain areas.

Some municipalities have specific ordinances or regulations governing short-term rentals to address concerns such as noise, parking, and neighborhood disruption.

In addition to zoning laws, corporate housing businesses may need to comply with state and local regulations related to lodging, hospitality, and business licensing.

These regulations can cover aspects such as safety standards, occupancy limits, tax requirements, and health inspections. For example, some states require short-term rental operators to collect and remit occupancy taxes.

Overall, corporate housing operators must navigate a complex regulatory landscape that varies significantly from one jurisdiction to another.

Staying informed about local laws and actively engaging with regulators and community stakeholders can help ensure compliance and smooth operation of corporate housing businesses.

f. Is There a Franchise for Corporate Housing Business?

No, there are no franchise opportunities for corporate housing businesses.

g. What Do You Need to Start a Corporate Housing Business?
  • Business Plan
  • Legal Entity (LLC, Corporation, etc.)
  • Financing or Investment Capital
  • Property Acquisition or Leasing
  • Furnishings and Amenities
  • Licensing and Permits
  • Insurance (Property, Liability, etc.)
  • Marketing and Branding Strategy
  • Operational Processes and Systems
  • Customer Service and Support Infrastructure.
  1. Choose a Memorable Business Name

When looking to start a business, before you can begin to file the necessary documents with the constituted authorities or start your website, it is necessary that you come up with a name that you will be recognized with.

It is essential that the name you come up with can easily be pronounced, is unique and easily memorable. Some of the catchy business name ideas suitable for a corporate housing business are;

Creative Corporate Housing Name ideas
  • John Parker® Corporate Housing Company, Inc.
  • Rowe Yorke™ Corporate Housing Company, LLC
  • Golden Gates© Corporate Housing Company, Inc.
  • White House® Corporate Housing Company, Inc.
  • Silver Townhouse® Corporate Housing Company, LLC
  • Liberty Lodge™ Corporate Housing Company, Inc.
  • Mike Dean® Corporate Housing Company, Inc.
  • Clutter Berg™ Corporate Housing Company, LLC
  • Carl Williams© Corporate Housing Company, Inc.
  • Five Points® Corporate Housing Company, Inc.
  • Denver Group® Corporate Housing Company, Inc.
  • Ben Malow™ Corporate Housing Company, Inc.
  • John Smith™ Corporate Housing Company, LLC
  • Kate Milton® Corporate Housing Company, Inc.
  • Victoria Street® Corporate Housing Company, Inc.
  • Six and Ten© Corporate Housing Company, Inc.
  • West Coast® Corporate Housing Company, Inc.
  • North Pole© Corporate Housing Company, LLC
  • East Coast® Corporate Housing Company, Inc.
  • Harmony Group® Corporate Housing Company, Inc.
  1. Register Your Business

a. What Type of Business Structure is Best for Corporate Housing Business?

The ideal business structure for a corporate housing business is determined by a variety of factors, including the size of the company, the number of owners, the level of personal liability the owners are ready to accept, and the tax consequences of the various business structures.

However, we normally recommend that you start the business with minimal liability. An LLC is a hybrid corporate form that provides the flexibility of a partnership while also providing its owners with limited liability protection.

An LLC can have one or more owners, and the owners are not personally accountable for the debts or liabilities of the business. This business form is frequently used for small to medium-sized organizations.

b. Steps to Form an LLC
  • Choose a Name for Your LLC.
  • File Articles of Organization.
  • Choose a registered agent.
  • Decide on member vs. manager management.
  • Create an LLC operating agreement.
  • Comply with other tax and regulatory requirements.
  • File annual reports.
c. What Type of License is Needed to Open a Corporate Housing Business?
  • Business License
  • Occupancy Permit
  • Short-Term Rental License
  • Zoning Permit
  • Health Department Permit
  • Tax Registration (Sales, Lodging, etc.)
  • Fire Safety Inspection Certificate
  • Building Code Compliance Certificate
  • Real Estate License (if involved in property management or leasing)
  • Homeowners Association (HOA) Approval (if applicable).
d. What Type of Certification is Needed to Open a Corporate Housing Business?
  • Certified Corporate Housing Professional (CCHP)
  • Certified Apartment Manager (CAM)
  • Certified Property Manager (CPM)
  • Certified Hospitality Sales Professional (CHSP).
e. What Documents are Needed to Open a Corporate Housing Business?
  • Business Plan
  • Articles of Incorporation or Organization
  • Operating Agreement (for LLC)
  • Tax Identification Number (EIN)
  • Business License
  • Lease Agreements (if leasing properties)
  • Property Insurance Policies
  • Liability Insurance Policies
  • Employment Agreements (if hiring staff)
  • Marketing Materials (brochures, website content, etc.)
  • Financial Statements (balance sheet, income statement, cash flow statement)
  • Budget and Financial Projections
  • Vendor Contracts (furniture suppliers, maintenance services, etc.)
  • Safety and Compliance Documents (fire inspection reports, health department permits)
  • Client Contracts or Agreements.
f. Do You Need a Trademark, Copyright, or Patent?

For a corporate housing business, obtaining trademarks, copyrights, or patents depends on the specific aspects of the business. Trademarks protect brand names, logos, and slogans associated with the business, ensuring they are not used by competitors.

Copyrights safeguard original creative works like website content, marketing materials, or software developed for the business.

Patents, on the other hand, protect inventions or unique processes related to the business, such as proprietary technology for managing bookings or innovative furnishing designs.

While not mandatory, securing these intellectual property protections can offer legal recourse against infringement and enhance the business’s value and market position.

  1. Cost Analysis and Budgeting

a. How Much Does It Cost to Start a Corporate Housing Business?

The cost to start a corporate housing business varies widely depending on factors like location, property acquisition, furnishings, and marketing.

Estimates suggest it can range from $1.5 million to $10 million or more, with expenses including property leases or purchases, furnishing and amenities, licensing and permits, and marketing.

b. What are the Costs Involved in Starting a Corporate Housing Business?
  • Legal and administrative costs (the cost of obtaining business licenses and permits, registering the business, and consulting with attorneys and accountants): $7,500
  • Staffing costs: $65,000
  • Property Acquisition and Furnishing: $1.5 million
  • Marketing and advertising costs: $3,000
  • Insurance costs: $6,800
  • Miscellaneous Expenses: $5,000.
c. What Factors Determine the Cost of Opening a Corporate Housing Business?
  • The size of the corporate housing business
  • The choice of location
  • The required licenses and permits
  • The cost of hiring and paying a business consultant and attorney
  • The cost of branding, promotion, and marketing of the corporate housing business
  • The cost of furnishing and equipping the corporate housing business office
  • The cost of the insurance policy covers
  • The cost of registering the business
  • Source of your supplies and ongoing expenses
  • The cost of recruiting and training your staff
  • The cost of the purchase and customizing of uniforms, shoes, and caps for your employees
  • The cost for the grand opening of the corporate housing business.
d. Do You Need to Build a Facility? If YES, How Much Will It Cost?

It is not necessary to build a new facility for your corporate housing business, especially if you choose to operate from a leased facility. But, if you have the required finance, it will pay you to build your own facility.

e. What are the Ongoing Expenses of a Corporate Housing Business?
  • Property Lease or Mortgage Payments
  • Property Maintenance and Repairs
  • Utilities (Electricity, Water, Gas)
  • Security System Maintenance and Monitoring
  • Insurance Premiums (Property, Liability, etc.)
  • Property Taxes
  • Marketing and Advertising Costs
  • Staff Salaries and Benefits
  • Software and Technology Expenses (e.g., online booking systems)
  • Pest Control and Facility Cleaning Costs
  • Miscellaneous costs.
f. What is the Average Salary of your Staff?
  • Facility Manager – $75,000 per year
  • Accountant – $56,000 per year
  • Sales and Marketing Manager – $40,000 per year
  • Compliance and Safety Officer – $38,000 per year
  • Administrative Staff – $34,000 per year
  • Customer Service Representative – $33,000 per year
  • Security Guard – $35,000 per year.
g. How Do You Get Funding to Start a Corporate Housing Business?
  • Raising money from personal savings and sale of personal stocks and properties
  • Raising money from investors and business partners
  • Sell shares to interested investors
  • Applying for a loan from your bank/banks
  • Pitching your business idea and applying for business grants and seed funding from the government, donor organizations, and angel investors
  • Source for soft loans from your family members and friends.
  1. Write a Business Plan

a. Executive Summary

Clutter Berg™ Corporate Housing Company, LLC is a premier provider of upscale corporate housing solutions located in San Francisco, California.

Our company is dedicated to offering luxurious and fully furnished accommodations tailored to meet the needs of business travelers, corporate relocations, and individuals seeking extended stays in the dynamic San Francisco Bay Area.

San Francisco is a vibrant hub for business, technology, and innovation, attracting a steady influx of corporate travelers, professionals, and executives in need of temporary housing solutions.

With the limited availability of quality corporate housing options in the city, Clutter Berg™ aims to capture a significant share of this lucrative market by delivering unparalleled luxury, convenience, and value to our clients.

Clutter Berg™ Corporate Housing Company, LLC is well positioned to become the premier choice for discerning travelers seeking exceptional accommodations in San Francisco.

With our commitment to excellence, attention to detail, and dedication to customer satisfaction, we are confident in our ability to redefine the corporate housing experience and establish a reputation as a trusted industry leader in the Bay Area.

b. Products and Service

Clutter Berg™ offers a wide range of meticulously curated corporate housing options, including spacious apartments, condominiums, and townhomes, equipped with premium furnishings, modern amenities, and convenient access to key business districts and attractions in San Francisco.

Key Features:
  • Luxurious Furnishings: Each of our units is elegantly furnished with high-quality furniture, bedding, and decor to create a sophisticated and comfortable living environment.
  • Comprehensive Amenities: Our properties feature state-of-the-art amenities such as fully equipped kitchens, in-unit laundry facilities, high-speed internet, and access to fitness centers and recreational areas.
  • Prime Locations: Located in desirable neighborhoods throughout San Francisco, our corporate housing options offer proximity to major corporate offices, public transportation, dining, shopping, and entertainment venues.
  • Personalized Services: Our dedicated team provides personalized concierge services, including 24/7 customer support, housekeeping, maintenance, and assistance with local recommendations and reservations.
c. Mission Statement

At Clutter Berg™ Corporate Housing Company, LLC, our mission is to elevate the corporate housing experience by providing unparalleled comfort, convenience, and personalized service to every guest.

We are committed to delivering meticulously curated accommodations that feel like home, fostering a sense of belonging and relaxation for business travelers and corporate relocations alike.

Through attention to detail, innovation, and genuine hospitality, we strive to exceed expectations and create memorable stays that inspire loyalty and trust.

Vision Statement:

Our vision at Clutter Berg™ Corporate Housing Company, LLC is to be the premier provider of luxury corporate housing solutions, setting the standard for excellence in the industry. We envision a future where our brand is synonymous with sophistication, reliability, and unparalleled hospitality.

d. Goals and Objectives

Clutter Berg™ Corporate Housing Company, LLC aims to become the premier provider of upscale corporate housing solutions in San Francisco and beyond.

Our objectives include ensuring customer satisfaction, expanding our property portfolio, achieving operational excellence, promoting sustainability, fostering employee development, forging strategic partnerships, embracing technology, ensuring financial stability, and engaging with our local communities.

e. Organizational Structure
  • Chief Executive Officer (Owner)
  • Facility Manager
  • Accountant
  • Sales and Marketing Manager
  • Compliance and Safety Officer
  • Administrative Staff
  • Customer Service Representative
  • Security Guard.

Marketing Plan

a. SWOT Analysis
  • Prime Locations: Strategic positioning in desirable neighborhoods of San Francisco.
  • Luxury Accommodations: High-quality, fully furnished properties with premium amenities.
  • Personalized Service: Dedicated customer support and concierge services for guests.
  • Strong Branding: Distinctive brand identity and reputation for excellence in the industry.
  • Limited Property Portfolio: Relatively small portfolio compared to larger competitors.
  • High Operating Costs: Expenses associated with maintaining luxury accommodations and personalized services.
  • Dependence on Local Market: Vulnerability to fluctuations in the local economy and tourism industry.
  • Limited Brand Awareness: Challenges in reaching the target audience due to the competitive market.
  • Market Expansion: Opportunity to expand into new markets beyond San Francisco.
  • Diversification of Offerings: Introducing new types of accommodations or additional services to attract a broader clientele.
  • Partnerships and Collaborations: Forming strategic alliances with corporate clients, travel agencies, and relocation companies.
  • Technological Integration: Implementing innovative technologies to enhance guest experiences and operational efficiency.
  • Economic Uncertainty: Potential impact of economic downturns or market instability on travel and hospitality industry.
  • Competitive Landscape: Presence of established competitors and the emergence of new entrants in the corporate housing market.
  • Regulatory Challenges: Compliance with evolving regulations and licensing requirements for short-term rentals.
  • External Disruptions: Risks posed by natural disasters, pandemics, or other unforeseen events affecting travel and tourism.
b. How Do Corporate Housing Businesses Make Money?

Corporate housing businesses generate revenue through rental income from leasing furnished properties to corporate clients, business travelers, and individuals needing temporary accommodations.

Additional sources of income may include fees for extra services such as housekeeping, maintenance, and concierge services. Some businesses also earn commissions through partnerships with relocation companies or travel agencies.

c. Payment Options
  • Credit Card Payments
  • Cash
  • Bank Transfers
  • Checks
  • Electronic Funds Transfer (EFT)
  • Payment Platforms (PayPal, Square, etc.)
  • Mobile Payment Apps.
d. Sales & Advertising Strategies
  • Utilize a user-friendly website with online booking capabilities. Implement digital marketing strategies such as search engine optimization (SEO), social media advertising, and targeted online campaigns to reach potential customers.
  • Attract new customers and encourage repeat business by offering special promotions, discounts for long-term rentals, or referral incentives. Create limited-time offers to drive urgency and boost sales.
  • Forge partnerships with local businesses, real estate agencies, or relocation services to expand your reach. Engage with the community through sponsorships, local events, or charitable initiatives to enhance brand visibility and goodwill.
  • Optimize your online presence for local search by ensuring accurate business information on Google My Business and other online directories. This improves visibility when potential customers search for corporate housing solutions in your area.
  • Invest in clear and attractive signage at your corporate housing facility to capture the attention of passersby. Ensure that the physical appearance of your facility is well-maintained, as a clean and secure environment contributes to customer trust.
  • Establish a referral program where existing customers receive incentives for referring new clients. Word-of-mouth recommendations can be powerful in attracting customers to your corporate housing business.
  • Showcase your corporate housing facility with high-quality photographs and virtual tours on your website. Visual representations create a positive impression and help potential customers understand the quality and security of your corporate housing.

Financial Projection

a. How Much Should You Charge for Your Product/Service?
  • Studio/One-Bedroom Apartment: $2,000 – $4,000 per month
  • Two-bedroom apartment: $3,000 – $6,000 per month
  • Three-bedroom apartment/House: $4,000 – $8,000 per month
  • Luxury Properties: $6,000 – $15,000+ per month.

It is important to note that these rates typically include utilities, internet, and furnishings. Additionally, prices may vary significantly between urban centers like New York City or San Francisco and smaller cities or suburban areas.

Specialized or high-demand locations may command higher rates, while longer-term leases may offer discounted pricing.

b. How Much Profit Do Corporate Housing Business Owners Make a Year?

The annual profit for corporate housing business owners can vary widely depending on factors such as location, occupancy rates, property expenses, and operational efficiency.

On average, owners may expect to earn anywhere from $50,000 to $200,000 or more per year after accounting for expenses and overhead costs.

c. What Factors Determine the Amount of Profit to Be Made?
  • Location
  • Occupancy Rates
  • Property Expenses
  • Rental Rates
  • Operational Efficiency
  • Economic Conditions
  • Marketing and Customer Retention.
d. What is the Profit Margin of a Corporate Housing Business?

The profit margin of a corporate housing business typically ranges from 10% to 20%, depending on factors such as location, occupancy rates, operational efficiency, and overhead costs. Efficiently managed businesses may achieve higher profit margins.

e. What is the Sales Forecast?
  • First Fiscal Year (FY1): $750,000
  • Second Fiscal Year (FY2): $1.5 million
  • Third Fiscal Year (FY3): $3.5 million
  1. Set Up your Shop/Office

a. How Do You Choose a Perfect Location for Corporate Housing Business?
  • Select areas near major business districts or corporate offices to attract business travelers and corporate clients.
  • Choose locations with convenient access to transportation hubs, highways, and public transit for ease of travel.
  • Choose neighborhoods with nearby amenities such as restaurants, shopping centers, and recreational facilities to enhance the guest experience.
  • Prioritize areas with low crime rates and a reputation for safety to ensure the well-being and peace of mind of guests.
b. What State and City is Best to Open a Corporate Housing Business?
  • Atlanta, Georgia
  • Los Angeles, California
  • Chicago, Illinois
  • Dallas/Fort Worth, Texas
  • Denver, Colorado
  • New York City, New York
  • San Francisco, California
  • Seattle, Washington
  • Las Vegas, Nevada
  • Orlando, Florida.
c. What Equipment is Needed to Operate a Corporate Housing Business?
  • Furniture (beds, sofas, tables, chairs, etc.)
  • Kitchen Appliances (refrigerator, stove, microwave, dishwasher)
  • Cooking Utensils and Dinnerware
  • Linens and Bedding (sheets, pillows, blankets, towels)
  • Electronics (TV, DVD player, Wi-Fi router)
  • Washer and Dryer
  • Cleaning Supplies and Equipment
  • Maintenance Tools (basic repair tools, vacuum cleaner)
  • Safety Equipment (smoke detectors, fire extinguishers)
  • Office Equipment (computers, printers, office furniture)
  • Guest Amenities (toiletries, welcome packages)
  • Key Management System (keyless entry, lockboxes)
  • Security Systems (security cameras, alarm systems)
  • Outdoor Furniture (patio chairs, tables)
  • Decor and Accessories (rugs, curtains, artwork).
  1. Hire Employees

Hiring employees for a new corporate housing business is essential for efficient operations and customer service. Trained staff can handle customer inquiries, maintain security, and ensure the facility’s smooth day-to-day functioning.

Key employees include a facility manager to oversee operations, customer service representatives to assist clients, maintenance personnel for upkeep, and security personnel to monitor the premises.

  1. Launch the Business Proper

Organizing an opening party for a new corporate housing business can be a good way to introduce your business to the community and create awareness about your services. However, whether or not to have an opening party is ultimately a decision that depends on your business and goals.

If you want to go ahead to organize a proper launch for your corporate housing business, then you must make sure to invite members of the community who may be interested in your services.

a. What Makes a Corporate Housing Business Successful?
  • Selecting a strategic and easily accessible location in a high-demand area contributes significantly to a corporate housing business’s success.
  • Implementing robust marketing strategies, both online and offline, to create awareness, attract customers, and differentiate the business from competitors.
  • Ensuring top-notch security with surveillance systems, access controls, and other measures to instill trust and protect your guests.
  • Prioritizing exceptional customer service to build loyalty, garner positive reviews, and encourage word-of-mouth referrals.
  • Streamlining operations, including online booking, payment systems, and efficient facility management, to provide a seamless and hassle-free experience for customers.
b. What Happens During a Typical Day at a Corporate Housing Business?

A typical day at a corporate housing business involves various tasks to ensure smooth operations and guest satisfaction. This includes managing reservations, coordinating check-ins and check-outs, responding to guest inquiries and requests, conducting property inspections, coordinating cleaning and maintenance services, updating listings and marketing materials, handling billing and financial transactions, and addressing any issues or emergencies that arise.

Staff may be required to engage in activities such as property staging and furnishing, inventory management, vendor coordination, and implementing guest amenities and special touches to enhance the guest experience.

c. What Skills and Experience Do You Need to Build a Corporate Housing Business?
  • Skills in strategic planning, financial management, and business operations to ensure the overall success of the corporate housing business.
  • Understanding of real estate principles and market trends to select an ideal location for the corporate housing facility.
  • Skills in marketing strategies, customer acquisition, and sales to attract and retain customers.
  • Strong customer service skills to address inquiries, and concerns, and ensure a positive customer experience.
  • Knowledge of security systems and protocols
  • Familiarity with local zoning laws, permits, and regulations related to storage facilities.
  • Negotiation skills for securing favorable lease agreements, vendor contracts, and other business-related contracts.
  • Competence in using technology for online booking systems, security monitoring, and other operational aspects.
  • Knowledge of facility maintenance to ensure the physical infrastructure remains in optimal condition.
  • Ability to identify and address challenges promptly, whether related to customer concerns, facility maintenance, or operational issues.