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What is the #1 question answered every day by ExecuStay Midwest sales reps?
Do you know the answer…
Who said, “How much does a corporate apartment cost?”
You are the WINNER!!
Now, let’s make it a little harder. What is the most common follow-up question?
You guessed it. “WHY does it cost so much?”
If those same questions have been swimming around inside your head, then today is your lucky day! We’re going to dive in there and find the answers to those burning questions.
Burning Question #1: How Much Does A Corporate Apartment Cost?
The easy answer is that it costs on average, about $150 per day. There you go. Now you know, right?
Not so fast! You didn’t think it would be that easy, did you?
I knew it. You’re a smart cookie!
Okay, so actually even though the average is around $150 per day, the REAL answer is that it varies… a LOT! There are a bunch of factors that go into the daily rate of a corporate apartment such as location, amenities, quality, and service.
I know what you’re thinking… “thanks for nothing. I still don’t know how much corporate housing will cost for ME!”
Well, sit up, sharpen your pencil, and pay attention. You’re about to learn the ins and outs of how corporate housing providers set their prices. Because we’re going to answer…
Burning Question #2: WHY Does A Corporate Apartment Cost So Much?
Chapter 1 - Location
(Pictured: One Cardinal Way/St. Louis Pool Overlooking Busch Stadium)
I mean, you don’t expect to pay the same rate for a corporate apartment in Miami that you pay in Springfield, Missouri do you?
The cost of living in a particular area plays a big role in the cost of your corporate apartment. Typically, your provider rents the apartment. And that rent amount is going to be one of the biggest influencers in the rate.
And don’t just think about one city versus the next. You also need to consider the neighborhood.
You will almost always pay more for a downtown location as opposed to something a little further out.
Sure, sure, this all makes sense. But let me throw you for a little loop. What happens when you need a corporate apartment in a small town out in western Nebraska?
The cost of living is low. Housing costs seem reasonable. So why is my corporate apartment still expensive?
In this situation, supply and demand plays a huge role in determining the rate. Think about it.
The corporate housing provider will have to take out a 6-12 month lease. You stay for 3 months. How many other travelers are looking for an apartment in that same remote location? How far will the furniture company have to go to deliver to Tiny Town, Nebraska?
I'm just going to say it... there is a better chance of finding Big Foot than another renter for your apartment after you leave. So the price has to go up to cover the cost of the rent and utilities.
Add to that the expense of having furniture delivered from several hours away, and you can see how the price just keeps rising.
Suddenly, that cheap apartment is now costing big bucks!
Chapter 2 - Amenities
Is a pool a must-have at your corporate apartment?
What about a resort-style saltwater pool with zero entry, private cabanas, and a bartender on duty every weekend?
Do you need a fitness room in your apartment community?
Or do you need a 24-hour fitness center with a yoga studio, Peloton bikes, Fitness of Demand Classes, and a massage studio?
Are you picking up what I’m throwing down here? There are amenities, and then there are A-MEN-I-TIES! I know you aren't surprised to learn that the second kind is going to cost more.
But seriously, when you are traveling for an extended period, you probably deserve those fancy amenities, am I right??
Some other fun amenities you might find in an apartment, which may or may not affect the price (okay they probably will) are things like:
- In-Home Laundry
- High-End Appliances
- Granite or Quartz Countertops
- Wine Fridge
- Dog Park
- Golf Privileges
- High-Quality Furnishings
- Security Gates
- Security Staff
Luxury apartment communities are coming up with new amenities to add all the time!
Chapter 3 - Quality
Most corporate apartments are located in luxury apartment communities. But that is certainly not a hard and fast rule.
Sometimes, to provide a lower-cost option, a corporate housing provider will use a more mature property, or maybe one without all the bells and whistles.
In a newer luxury apartment, you can expect an open floor plan, a generously sized kitchen, and plenty of closet space. And with that modern layout, you will get a modern price tag.
But, when you’re in a somewhat older apartment, you might find a small galley kitchen and less storage space. This will usually mean that you can also expect a lower rate.
You could also lower your rate by looking at smaller apartments. Or perhaps the parking situation is less than ideal. The place you choose could be in need of updates on flooring, paint colors, or cabinetry. Maybe the furniture package is more basic or the apartment comes with only the essential housewares.
All these compromises you are willing to take on the quality of your corporate apartment could help you get toa lower price point.
Chapter 4 - Service
Let me just start this section by saying that when you use a well-established corporate housing company you can expect to pay a little more.
Here’s why. They’ve been around long enough to know what things cost, and they’re big enough to have plenty of staff to take good care of their guests.
Let me explain.
Running your own corporate housing company probably sounds easy and like it would be a lot of fun. All you have to do is rent an apartment, find a couch and a bed, and BAM! You are a corporate housing provider.
And sure, that happens. Many people find a great deal on a corporate apartment renting from a one-person show. But with so many moving parts, having a full team of professionals taking care of you will put you at ease throughout your stay.
Think about it…
- Your Internet goes out.
- An important package doesn't arrive.
- You get locked out of your apartment.
- Someone is parking in your designated space.
- Your upstairs neighbor has a yappy dog that never sleeps.
Who is going to help you?
When you stay with an established company like ExecuStay, someone is available 24/7 to help you through any issues that come up.
Consider what you expect to see when you move into your new corporate apartment.
- A spotless apartment.
- A starter pack of things like toilet paper, shampoo, and bath soap.
- Working light bulbs.
- Heating and AC that is in working order.
A professional company will have housekeepers and inspectors on staff. Their job is to make sure your apartment is sparkling clean and that everything is in working order when you arrive.
Besides the guest-facing staff, a company like ExecuStay also has crew members working behind the scenes. They help to make sure you are comfortable and cared for while staying with them.
With all these people working to make your home away from home just right, you can see how that last factor, service, comes into play. You can also see why you might pay a little more to have this level of service. Because some things, like your peace of mind, are just worth paying a little extra for.
Putting It All Together
There are a lot of reasons people use corporate housing— long-term work assignments, corporate relocation, or between homes. No matter the situation, having a comfortable, clean, and safe place to call home is important.
With different situations though, come different priorities. By knowing the variables that go into pricing corporate housing, you can make informed choices to get the best value for YOU.
Which things are most important to you? Is a swanky downtown location on your must-have list? How about those high-end amenities?
Maybe you are willing to drive a bit further to save a few dollars. In that case, a suburban location might be the right choice!
Or maybe you’re placing a construction crew who only need a place to sleep a few nights a week while they complete a job. In that case, amenities and style might not be important at all.
No matter the reason for your stay in a corporate apartment, ExecuStay Midwest can help you find the best fit for your needs and budget. By considering location, amenities, quality, and service, you now know how to get the best corporate apartment for your budget.
Still have questions? Give us a call! Or check out some of our other articles to learn more about corporate housing.