How Much Does Corporate Housing Cost? Who Pays?
While relocating to a new city is exciting, trying to find a place to live temporarily before your family and the rest of your belongings arrive can be a reason to be anxious. You also don’t know the area, which can make the home searching process harder.
If you’re not relocating but will be in a city for a long business trip, the cost of hotels, extended-stays or other lodging options can quickly add up, especially if you’re going to be staying for a month or more. On top of that, the eating out for your meals can also add to the costs.
Corporate housing is an ideal solution for both above-mentioned scenarios, especially when you can get units that are fully furnished, are close to the employer’s business, and are more affordable than hotels and extended stays.
How Much Does Corporate Housing Cost?
According to the Corporate Housing Providers Association, the average daily rate in 2015 was $143. Costs for this type of temporary housing, vary greatly, however, ranging between $70-$200 per day.
It is important to note here that corporate housing doesn’t typically charge on a daily or weekly basis, but rather monthly, and you can usually get a better deal this way, since you’ll be staying longer. As we said above, estimates vary, but these furnished apartments can end up costing around 50% less than a hotel or extended stay.
The costs for a corporate apartment also includes all utilities, so that’s one less thing you’ll need to worry about on your stay.
Corporate housing costs vary based on the size of the unit and the market in which the unit is located in. Corporate housing in cities like New York, San Francisco, and Chicago generally are on the high-end with the most expensive costs, while corporate housing in cities such as Des Moines and Tulsa are on the low-end, being the least expensive.
The size and amenities of the corporate housing apartment also affect the costs. Corporate housing units range in size from small studios with a kitchenette to spacious three bedrooms, two bathroom units with a full kitchen. The styles and feel vary from tiny, basic dorm room type apartment to spacious, multi-bedroom units that look and feel like a single-family home.
Amenities can vary, but most include concierge service, laundry services, fitness centers and private parking.
In most cases, the employer will foot the bill for an employee’s temporary housing costs. Insurance companies may also pay for it when it regards homeowners being temporarily displaced due to natural disaster or accident, such as a fire.
Rarely will the employee be asked to pay for his or her long-term, temporary apartment.
Corporate housing is a great option for employers to lessen the anxiety of new employees or traveling executives or freelancers. When they don’t have to worry about furniture, rent, hotels or dining, these employees can better focus on work and be more productive.
When you combine that with the potential savings, this becomes the best option for many companies.
If you’re an employer in Texas or you’re sending an employee there on an extended business trip, Residology can provide high-quality, affordable temporary housing solutions for your employees.