Things You Should Know About Corporate Housing

1. Things You Should Know About Corporate Housing

2. Synopsis 1. Investing in Corporate Housing 2. Corporate Housing and Its Uses 3. Benefits of Corporate Housing and Tax Issues 4. Who Can Benefit from Corporate Housing Units? 5. Find Out How Interns Can Benefit from Corporate Housing 6. Corporate Housing and Business Expansion

3. Investing in Corporate Housing • Renting out corporate housing differs from other renting opportunities. The investor comes into the property expecting to spend a lot more to make the space completely livable. The corporate housing renting spaces are lent out to corporations and other large businesses. Because of this, the investor makes the space as up to date as possible. He will also fully furnish the space, because these stays won’t typically be as long. They will be on a more month to month basis rather than yearly. • While the investor may come to the start of the project with more out of pocket money typically they will end up with more money in pocket in the long run, depending on a few details. The investor has to do a lot of research to determine where to invest into a property. Not everywhere will be beneficial for corporate housing. The investor has to determine where corporations or business may want to expand. Large cities are typically a good bet as well as expanding areas around the country. Once this is determined, it is up to the investor to market their property. It is important to create great business relationships. Often times, a corporation will continue to use the same corporate housing again and again, because it cuts back on time and is simply easier. An investor wants a couple of corporations to do this. It guarantees good tenants and a steady cash inflow. • Investors also understand that they can charge more for corporate housing than they can for typical renting because of the clientele they reach and the fully furnished space they offer. Something else to keep in mind as an investor, however, is the other services that corporations will be expecting during their stay. They will most likely expect a cleaning service of some sort and dry cleaning. They will also want to know about the area and what is offered for them (dining, entertainment, etc). While this will cost more for the investor, it pays off in the ending price corporations are willing to pay.

4. Corporate Housing and Its Uses • In the past these corporate housing spaces have only been available to the elite corporations. It has been extended to those in the medical field that may need to temporary relocate based on a special medical case or for long term care for specific patients. Government officials also use these. Some officials may not fully live in the capital, but rather travel there when they are needed. They can stay in these corporate housing spaces instead of hotels. Lately, celebrities have chosen to use corporate housing as well to lessen the amount of paparazzi. It keeps them a little more hidden. There are other jobs that may deem corporate housing necessary as well. Sometimes a company simply has a large ongoing project with either another company or a branch campus. The business will then send its employees to the area temporarily to complete the project. Also, a corporation may simply be opening a new branch of its business. They will relocate a lead employee to the new area to oversee the start up and to help train new leadership for that branch. • In more recent years, corporate housing has been extended beyond only corporate use. The increase in natural disasters has left many families stranded and without a home or any of their things. The government and even some insurance companies have made deals with corporate housing owners to use their spaces. The stranded families have been able to stay in these corporate housing spaces for a set amount of time while they look for options of starting over their home. Many people have questioned this decision stating these families have not necessarily lost jobs, so they should be able to simply rent an apartment of some sort until they can figure out a new home. What these people do not realize is that these families not only lost their homes, but also their furniture, appliances, etc. It is not such an easy fix. Some of these families are also too large for a simple extended stay hotel. Also pets sometimes present a problem for these extended stay places, as well.

5. Benefits of Corporate Housing and Tax Issues • These corporate houses are fully furnished unlike other rental properties and have all the basic utilities for a comfortable living. These houses have fully equipped kitchens and functional bathrooms. • Unlike the hotel rooms, these corporate houses are as comfortable as your own home. You can enjoy your privacy and live in your own way. Nobody is there to interrupt you in the name of room service. For extended stays, being able to live in a home-like environment will certainly be a productivity booster. • These corporate houses supply you with all the required utilities be it internet service or local cable. You get washing machines, television, refrigerator, and other required electronics pre-installed in these houses. The houses also have sufficient stock of bed sheets and bath towels which can be changed as required. • Staying in a corporate house instead of a hotel is quite cost-effective. Despite all the available facilities, the rental charges of corporate houses are lower than that of hotel rooms. In addition, you can also save your money spent on food, as you have to dine out or order your meals daily while living in a hotel. On the other hand, you can cook your healthy meals easily at home due to fully equipped kitchens in corporate houses.

6. Benefits of Corporate Housing and Tax Issues • While the concept of corporate housing has its benefits, it is natural to have questions regarding your taxes. If your stay at the corporate house is due to a fringe benefit by your employer, it is considered as a part of your income and is subject to tax deduction. If you are staying there during the period of relocation, you have to bear the tax. • If you are traveling for the purpose of business and have to stay there as part of your work regime, like if you are a project manager and are staying at premises within the area to supervise company`s upcoming project, the staying cost is excluded from your income and is nontaxable. People from civil service, government, education, and construction companies can benefit from this exception of a tax deduction. • Another exception from tax deduction is that if you have to stay at the corporate house for a long duration like a year or two then your house allowance will be deducted from your salary and this cost of staying at the corporate house will be included in business expenses and you don't have to pay the tax. So, be sure to consider these tax related issues when opting for corporate housing.

7. Who Can Benefit from Corporate Housing Units?  Medical researchers, nurses and health care officials who are traveling for some project or training  People from the entertainment industry like artists, directors, producers, and behind the stage crew who are traveling for shoots and recordings  Traveling workers and researchers from energy and fuel department  Consultants and corporate counselors staying for a series of seminars or training workshops  Temporarily reposted government and military employees  Project managers and engineers of construction companies for ongoing projects  Auditors, bankers, and other finance personnel traveling for auditing and other official tasks  Programmers and IT specialists from technology departments

8. Find Out How Interns Can Benefit from Corporate Housing • Corporate houses often grab the attention of interns for their residential issues and they are the most frequent users of this housing facility. • If you are a graduate or undergraduate and want to explore the cooperative world and attain the firsthand experience of working environments, you should decide to explore various opportunities that often require relocating and staying in new cities and towns. The biggest concern of these struggling interns is to find a safe and affordable housing that is in close proximity of their workplace. This residential issue turns out to be the greatest obstacle in their way and often make them stick with less-than-perfect housing options. • Many companies and firms are well aware of this major concern of internees and facilitate their future employees by offering them these corporate houses. The employer often bears complete or a major part of the housing cost to attract the fresh graduates looking for better career opportunities. This strategy helps them in getting the brightest and capable employees for their firms as these interns of today opt for a permanent job after their internship in the same firm.

9. Corporate Housing and Business Expansion • Corporate housing may be the executive suite of a hotel, the top floor of an apartment building, or at rare times may actually be a single family home. The space comes fully furnished with furniture, appliances, towels, bed sheets, toiletries, a fully functional kitchen etc. The majority of the time, other services are included. There is usually a cleaning service, a dry cleaning service, and maintenance services on hand. This allows for the employee for a quick and easy move and transition to the new temporary location. The business sending them does not want to waste time and money on the employee having to search for a place to stay and then also have to wait for them to move and settle in. Not to mention, those costs add up quickly, especially when moving to a new state. The corporate housing speeds up the process and everything is already there waiting. The employee can move in and get right to work in the new branch location. • This sort of temporary housing also gives large businesses other options. Sometimes the ideal employee to send for the project is not alone. The employee may have a family or even pets. As silly as it seems and so minute to think about, the employee has to consider what to do with his furry friend if he will be out of town for an extended period of time. Boarding is expensive and not fair to the anima if it will be for a long stay. Corporate housing will, most of the time, allow for animals while extended stay hotels may not. The other consideration is family. It is unlikely that an employee will want to leave his family home alone for more than just a short time. Corporate housing ranges in sizes and very often accommodate the employee’s family, as well.

10. For more details, please visit: kansascitycorporatehousing.com/corporate-housing-kansas-city 844-816-1218 info@kansascitycorporatehousing.com Two Pershing Square 2300 S. Main Suite 900-A Kansas City, MO 64108