Investing in Corporate Let Properties

Without doubt, the most exciting and lucrative rental market for buy to let properties in recent years has been the Corporate Let market.? The most successful property investors are now using the short term corporate let rental model to dictate their property investment strategy.? Here are some key considerations for any buy to let investor:

?·?Renting to corporations / companies dramatically reduces the risk of non-payment

·?Renting to corporations / companies dramatically reduces the upkeep costs and maintenance of your property

·?Most corporations prefer to pay extra on a short term let / serviced accommodation basis to give them more flexibility and a fully managed solution

·??Corporations usually either book direct with a known partner or through a relocation / corporate travel agent.

·??Relocation and corporate travel agents only book through established management companies like Residential Estates

·??Most corporations prefer short term let apartments to hotels due to flexibility, availability and a lower total cost (meals, laundry etc)

·?Investors who buy property through Residential Estates, and have them also manage the property on corporate lets see an average NET yield of over 12% and an ROI of over 35%

?As one of the most experienced and established corporate let operators / managing agents in the UK, Residential Estates also source investment opportunities and offer them to investors, in areas where their large corporate partners find it difficult to find short term let solutions for their business requirements.? These can include corporate relocations, special events, training courses, site visitors, mobile workers etc.? This is a very large market which has many barriers of entry.? One fact which will demonstrate this better than any is that Residential Estates current occupancy rate on short term let apartments is over 87% across all properties across the UK.? More than 95% of this business comes from corporate travellers with only 3% coming from Air BNB and Booking.com, the two largest leisure / tourism let companies in the UK.

?If you buy a property from Residential Estates, which is suitable for corporate short term lets, it is listed globally on over 150 of the leading travel and accommodation websites, However, 95% of the business comes from just 3 websites / companies who will not deal with individual investors / property managers.

?Our business model is growing stronger and stronger every day, and the prices of our investors properties continues to increase along with the amazing returns which they generate, so now is most definitely the time to invest in order to maximise your returns.? We don’t generally take on properties that we don’t sell as they are not targeted towards our corporate clients.? Additionally, many leases do not allow for short term lets and there are some on-site management companies that we just won’t work with. ?Also, most third-party sourced properties are simply not appropriate for corporate use.

?By investing in one of our carefully selected properties, you can expect a fully hands-off investment, ongoing management and support, multiple rental options and a healthy and achievable exit strategy.

?We are bringing on new corporate let property investment opportunities regularly.? Many you will never see as they are off-market and sold direct to our own investors (usually to existing owners who are achieving high returns with us).? We currently have opportunities in Aberdeen, Doncaster, Bristol, Rotherham, Wakefield, Hull and Preston.? Please remember that the best locations are not always the obvious ones.? Many locations are over-saturated and the three most important measures are occupancy rate, ADR (Average Daily Rate) and the purchase price.? These will generally determine the strength of the opportunity.

To book a specialist one-to-one call with myself and Residential Estates to discuss the opportunities we have, and what opportunities may be open over the next 6 months, please message or call me direct.

?A full understanding of this market / opportunity will maximise what you can achieve from property investment.? It is very difficult for me to achieve this with you by throwing dozens of emails at you, so those willing to invest a small amount of time to fully understand the massive potential here will benefit the most.

Article written by James Davis, Residential Estates.