We often have clients asking us about how to get cash-flow positive rentals. It's very hard to do in the metro DC area. There is one exception, though, that I've found works really, really well: rent your unit to a corporate tenant. Here's how it works:
Rent Your Unit to a Corporate Tenant
- You have to offer a fully furnished unit, including dishes, towels, etc. (not hard - just visit Ikea and get the basics).
- You have to be willing to do short-term rentals (3 months+)
- You have to pay all the utilities, cable, etc.
- Your unit probably needs to be near Metro and be no bigger than 2 BR (1 BR's are preferred)
If you can cover these 4 items, then you'll very likely be able to land a corporate tenant.
There is often a waiting list for these types of units, so getting a tenant doesn't tend to be very difficult. Although the term can be as little as 3 months, it's often longer - 6 months to a year.Corporate tenants are great for a number of reasons:
- They pay about 30% more than an average tenant. Most corporations authorize up to $3,000/month for a 1 BR rental. Usually you can only rent a 1 BR in downtown DC for $1,800 to $2,000/month.
- They take good care of your unit: Since these are generally executives for large corporations that are living in the units, they often work late and are traveling much of the time. This means little wear & tear on your unit
- They pay their rent on time: Since the corporation is basically paying the rent (usually they give the executive a certain sum, for rent, and the executive then pays you), the tenant is very unlikely to default.
We work with a very established corporate housing provider in DC who usually has a waiting list for these types of clients. If you'd like us to introduce you, just contact us right now.