What Percentage (%) Discount of Rental Rate Offered for Longer-Term Lease?
You’ve made the decision that you want your corporate housing to be offered at a discount for a long term lease, but now what? Making the decision to offer a discount is only part of what you need to do. You also need to consider how large the discount will be and when it will be put into place. In order to choose the right option, it might be good to look at data from other people and their corporate rental lease.
When to Put in Place a Corporate Housing Discount
In most cases, a corporate rental lease will offer a discount at three months, six months, nine months, or a year. Sometimes there might be a discount for each, that’s up to you to decide. The 2019 Corporate Housing Real Estate Report looks at whether people choose to add a discount for long term stays. It also takes a look at what the amount of the discount actually is. If you want to implement a discount, you can use this data to decide what level of discount is the best choice.
Most Common Choice of Discount
Of those who offer a discount on their rentals, you might be surprised to find that the most common amount is under 5%. It might seem that this wouldn’t be much of a push to renters to choose your housing option, but it’s working for a lot of people. It goes to show that sometimes the amount is less important than the availability of a discount. People feel as if you care about their time when you offer something for a longer stay.
The next highest bracket is 5% to 9% with 19% of respondents choosing this level of discount. This is a 1% difference from 2017 rates at 18%. Only 8% of people choose a 10% to 14% discount, while 2% choose a discount from 15% to 19%, and 2% choose a discount even more substantial than that.
Is it time to put into place a discount for your corporate housing? That’s up to you. Based on the data from the report, 52% of the people who responded do while 48% don’t bother with it. If you feel that it might help you make higher profits and keep people in your space longer, a discount is a good option to make that happen.
