Maximize rental profits by balancing corporate and vacation tenants

(ARA) - Real estate agent Diana Schenker of Scottsdale, Ariz., owns two furnished properties that she offers as both corporate and vacation rentals, depending on the time of the year.

"There are many vacationers in Scottsdale in the winter months because of the mild weather here, so my property makes a perfect vacation rental for anyone looking to get away from winter for a few weeks," she says. "During the rest of the year I market my property to Scottsdale's growing business community."

Many landlords of furnished rental properties share a similar experience to Schenker, as they often market their furnished rental properties as both a vacation and corporate rental.

Landlords don't have to choose between marketing their property as a vacation or corporate rental, says Kimberly Smith, the founder of CorporateHousingbyOwner.com, a website that markets individually-owned furnished properties. Rather, landlords of furnished properties can service both markets and capitalize on seasonal and economic trends.

"It makes perfect sense for properties to be marketed as both a vacation and corporate rental so landlords can maximize their occupancy year-round. It depends on the season, geographic area and timely events as to whether the property should be a corporate or vacation offering," she says.

She adds that areas like Orlando, Los Angeles, Phoenix, San Francisco and Las Vegas are perfect examples of cities that are frequented by both vacationers and corporate travelers. Furnished corporate housing properties in those areas could be marketed as a vacation rental during holidays and as a corporate rental during the busy convention and expo season.

Jennifer Cooling of Annandale, N.J. says that she only markets her home as a corporate rental because she prefers longer-term renters and scheduling weekly renters between longer-stay corporate renters can be tough.

"Normally vacationers are looking to rent for a week or two and they want to reserve time well in advance. Corporate rentals work on a first-come basis and rent for longer time periods, so it's not ideal to schedule a weekly rental for months out when you don't know who you might capture as a corporate tenant for a long-term stay," she says.

Smith of CorporateHousingbyOwner.com says that Cooling's strategy is a wise one because booking a weekly vacation rental too far in advance can cause more harm than good.

"We all know that people usually plan their vacations several months in advance. That means if you schedule a vacationer to stay in your property too far in advance, you may disqualify yourself from being able to accommodate someone who wants to rent your home between now and then . . . and beyond," she says.

Plus, she says, weekly renters can cost more money in the long run.

"Landlords should keep in mind the true cost of nightly and weekly rentals. Higher turnover can lead to more paperwork, more cleaning and more wear and tear on a home, all of which can quickly eat up your property's income potential," she says.

Smith adds that landlords should be on the look out for key trends in their area, which can affect how they market their property.

Debbie Hartman, the owner of a little cottage in the foothills of the Wasatch Mountains, in Salt Lake City, says what's going on in the area dictates how she markets her home.

"I've had great success renting out my cottage to business visitors to the area. That said, I'm always on the look-out for trends and events affecting our city. When the Olympics were held in Salt Lake City a few years back, I was able to rent out my cottage as a vacation rental, which proved to be quite lucrative for us," she says.

She says, however, that longer-term tenants are the best because they stay longer and create less wear on her cottage. "We've had corporate tenants stay with us for two full years. There was no fuss and we got our full asking price. It doesn't get better than that."

Courtesy of ARAcontent