BRIAN FERDINAND: FOR LANDLORDS, AIRBNB AND CORPORATE HOUSING COULDN’T BE MORE DIFFERENT
You’re interested in being a landlord and renting out property for brief periods of time in Los Angeles in the near future. However, you might be having a hard time figuring out how to go about doing this. What are your options, and which one is the best one? Brian Ferdinand, the managing partner of CorpHousing Group, recently outlined two unique short-term rental options—Airbnb and corporate housing— in an article and explained which one may be best for your needs.
THE CURRENT TRAVEL SITUATION
According to Brian Ferdinand, the Great Lockdown in Spring 2020 impacted Los Angeles in a major way. Many attractions, including Rodeo Drive and Universal CityWalk, had to close down. As a result, the number of visitors both by car and by air plummeted. This, of course, led to a sharp decline in hotel room bookings and luxury apartment rentals.
Now, travel has more or less returned, so visitation has slowly recovered. This means that now couldn’t be a better time to start renting out properties to short-term travelers. The properties you offer for rent now may generate a sizable return on your investment during the upcoming holiday season or the coming spring and summer seasons a few months away.
AIRBNB AND CORPORATE HOUSING
When it comes to short-term rental options, the Airbnb model may be one of the first solutions to come to mind. But before you go that route, it’s critical that you understand some of the challenges that come with Airbnb.
The policies that this company has in place for renting a home or an apartment without a background check has unfortunately sparked a prevalence of house parties. In light of this, Airbnb in July 2020 decided to introduce restrictions when it came to renting people under 25 years old. The company has also been more aggressive about citing rentals that fail to comply with its rules. However, the fact that people can still rent Airbnb homes without having to undergo background checks leaves you as a landlord open to potentially costly and negligent behaviors.
However, with corporate housing, you don’t have to deal with these challenges. That’s because corporate housing companies typically do perform background checks, which sets them apart in this industry. In addition, as a corporate housing firm owner, you have greater control over how you handle your property, as you don’t have to comply with a third party’s constantly shifting regulations (as is the case with Airbnb).