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Choosing the Right Temporary Living Accommodations
Temporary living is a common benefit offered by corporate clients to their relocating employees and is, in many ways, the most personal service line in all of relocation. Temporary living requires travelers to find a transitory home: a place to sleep, eat, shower, work … a place to live.
As such, overall satisfaction often hinges on the days/weeks/months spent in temporary housing. When evaluating various accommodation options to support a temporary living relocation benefit, it is crucial to fully consider the benefits and drawbacks of both apartments and hotels.
Consideration: Cost
Corporate apartments in primary markets, such as New York City, Chicago, Los Angeles, and Seattle are10 to 20 percent less expensive on aggregate, than hotels when comparing the total cost for a one-month rental. That discount range jumps as the length of stay extends, approaching 30 percent when comparing the total cost for a three-month rental.
Hotel reservations longer than one week are primarily subjected to variable pricing (i.e., nightly rates fluctuate from one night to the next and are always reflective of a corporate pricing model). Hotels also look to capitalize on vacation weekends, sporting events, etc., and will not deepen price discounts as the length of stay increases. Corporate apartments, however, trade margin for occupancy, creating an inverse correlation between price levels and length of stay.
Further, hotel reservations often carry significant tax burdens. It is important for savvy decision-makers to consider all-inclusive nightly rates when making cost comparisons across accommodations. Published and marketed baseline hotel rates can be deceptive as taxes are typically not displayed until the final stages of the booking process.
“Higher occupancy drives higher rates as supply is more limited,” notes Henry Gager, VP of Global Operations at CorporateLiving. “Correspondingly, lower occupancy drives lower rates as supply is more abundant. Steeply discounted hotels were commonplace during the first 15months of the pandemic as hotels struggled to stay afloat, but the market place has recalibrated, buoyed by greenlit corporate travel.”
Consideration: Do It Yourself
NEI’s temporary living partners act as travelers’ behind-the-scenes fiduciaries, working on behalf of relocating employees to facilitate, verify, and deliver on the fine details: dates, furnishings, internet, cleanliness … the list goes on! Securing a corporate apartment -- as an individual -- can be a daunting task and, in most rights, it should be. As the saying goes, “The devil is in the details” and without a refined, structured approach, individuals/HR teams may find themselves overwhelmed - not to mention, in for an unpleasant, unbudgeted surprise when they see the final bill.
From security deposits and application fees to credit checks and occupancy forms to connecting utilities and securing renters insurance, the rental process gets complicated quickly. Utilizing the services of a seasoned, vetted housing vendor simplifies and streamlines the temporary living process and allows individual travelers to have access to furnished accommodation options that they would not have otherwise.
Consideration: Qualities
Corporate apartments provide travelers with a myriad of qualitative advantages when compared to hotels, square footage being chief among them. Standard hotel rooms, particularly in high traffic markets, such as San Francisco, Philadelphia, and Boston, are tight and rarely include any sort of living area or true desk setup. In fact, many hotels do not have any room layouts other than studios on-site. Corporate travelers will often find themselves strapped for space in hotel rooms, especially when staying in-house for upwards of one month.
Corporate apartments, in addition to offering more space, generally have true kitchens: a full-sized refrigerator and oven range, a comprehensive kitchenware set, and ample counterspace. Storage space is generally abundant, with dressers, side tables, and large closets coming standard.
Background checks are also required in most residential communities, adding a baseline level of security amongst all on-site occupants.
Finally, corporate apartments provide a stable, community-type atmosphere as levels of transiency are far below those experienced at a hotel, meaning your neighbors aren’t constantly new and changing and leaving each morning at 11 AM.
Consideration: Using Vendors for Hotels
There are numerous benefits from utilizing NEI and its temporary living partners to secure and manage hotel bookings.
- No upfront payment is required by the traveler
- No upfront payment is required by the corporation
- Preferred pricing
- Flat, as opposed to variable, rates
- Preferred approvals (pet fees waived, multiple animals allowed, restricted breeds approved, free breakfast add-on, no-show fees waived, early check-in approval, late check-out approval, etc.)
- Check-in confirmation (no unapproved overages)
- Check-out confirmation (no unapproved overages)
- Preferred availability
- 24/7/365 support
Consideration: A Note on Airbnb Options
Airbnb accommodations may occasionally seem attractive. Property profiles often tout professional photos, positive ratings tend to attract the eye, and baseline prices can seem tantalizing low.
Though NEI and its housing partners are capable of booking via Airbnb(if client policy permits), relocating employee/family and corporate risks ultimately outweigh potential benefits:
Marketing versus Reality
Photos and descriptions cannot be validated prior to transferee arrival by NEI and its housing partners as Airbnb rentals are often provided by individual hosts who are actively renting to a myriad of travelers. The inability to verify the quality of Airbnb accommodations creates massive uncertainty for travelers and their families.
Hidden Fees
Transparency is important, and Airbnb’s pricing presentation is anything but. Beware of hidden fees associated with cleanings, date changes, and add-ons like parking.
Extension Issues
Airbnb locks travelers into specific terms and actively markets booked accommodations for dates following a traveler’s scheduled departure date. Extensions can prove to be unavailable when they are needed, forcing an unintended transfer fortraveling employees.
Shared versus Private
It’s not always clear if accommodation is shared or private and renting a room within an owner’s residence all but guarantees limited privacy.
Host Communication
Hosts can be unresponsive or unavailable, or simply unable to address potential in-house issues, leaving travelers without a strong point of contact on-site.
Duty of Care
Hidden cameras, broken locks, robberies … the horror stories are sadly real. Airbnb leaves travelers vulnerable to potentially unwelcome and/or dramatic occurrences.
Though Airbnb is a legitimate and savvy tool for casual or vacation travelers, the product offering lacks the duty of care element, professional structure, and management oversight that a corporate housing accommodation provides.
The NEI Difference for Corporate Housing
NEI’s temporary living service provision is structured and calculated, working to meet the nuanced constraints of individual travelers and their families. Services are coordinated in concert with all other policy benefits by a relocating employee’s NEI Account Executive who acts as travelers’ primary point of coordination.
Following a comprehensive family needs assessment, during which any requirements for a temporary living are identified, NEI’s Account Executives manage the entire housing process according to each employee’s specific policy criteria.
They use an interactive, proprietary temporary living directory to search and compare NEI’s current service partners. The directory details specific service partner information such as geographic expertise, property offerings, pricing, and quality ratings. This custom tool not only saves valuable time for Account Executives, but also expands the utilization of NEI’s service partner network and captures cost savings for clients.
NEI’s temporary living service partners are carefully vetted prior to network inclusion and are consistently evaluated before and after each use, regardless of how much time has elapsed since their last provision of housing. Continuous assessment promotes strict adherence to the stringent quality and service requirements of NEI and its clients.
Acting independently, NEI is not tied to any temporary housing brand through formal affiliation, ownership, or franchise agreement. This independence allows for ultimate flexibility in partnering with temporary housing providers based on service, cost, and various other criteria.
For more information or if you would like us to assess your current temporary living process, policy components, or service partner, please contact your NEI representative at any time.
The above information is for general information only and is not presented as tax or legal advice. Please consult with your tax or legal advisors and internal stakeholders before making decisions and taking any action.
Choosing the Right Temporary Living Accommodations
Temporary living is a common benefit offered by corporate clients to their relocating employees and is, in many ways, the most personal service line in all of relocation. Temporary living requires travelers to find a transitory home: a place to sleep, eat, shower, work … a place to live.
As such, overall satisfaction often hinges on the days/weeks/months spent in temporary housing. When evaluating various accommodation options to support a temporary living relocation benefit, it is crucial to fully consider the benefits and drawbacks of both apartments and hotels.
Consideration: Cost
Corporate apartments in primary markets, such as New York City, Chicago, Los Angeles, and Seattle are10 to 20 percent less expensive on aggregate, than hotels when comparing the total cost for a one-month rental. That discount range jumps as the length of stay extends, approaching 30 percent when comparing the total cost for a three-month rental.
Hotel reservations longer than one week are primarily subjected to variable pricing (i.e., nightly rates fluctuate from one night to the next and are always reflective of a corporate pricing model). Hotels also look to capitalize on vacation weekends, sporting events, etc., and will not deepen price discounts as the length of stay increases. Corporate apartments, however, trade margin for occupancy, creating an inverse correlation between price levels and length of stay.
Further, hotel reservations often carry significant tax burdens. It is important for savvy decision-makers to consider all-inclusive nightly rates when making cost comparisons across accommodations. Published and marketed baseline hotel rates can be deceptive as taxes are typically not displayed until the final stages of the booking process.
“Higher occupancy drives higher rates as supply is more limited,” notes Henry Gager, VP of Global Operations at CorporateLiving. “Correspondingly, lower occupancy drives lower rates as supply is more abundant. Steeply discounted hotels were commonplace during the first 15months of the pandemic as hotels struggled to stay afloat, but the market place has recalibrated, buoyed by greenlit corporate travel.”
Consideration: Do It Yourself
NEI’s temporary living partners act as travelers’ behind-the-scenes fiduciaries, working on behalf of relocating employees to facilitate, verify, and deliver on the fine details: dates, furnishings, internet, cleanliness … the list goes on! Securing a corporate apartment -- as an individual -- can be a daunting task and, in most rights, it should be. As the saying goes, “The devil is in the details” and without a refined, structured approach, individuals/HR teams may find themselves overwhelmed - not to mention, in for an unpleasant, unbudgeted surprise when they see the final bill.
From security deposits and application fees to credit checks and occupancy forms to connecting utilities and securing renters insurance, the rental process gets complicated quickly. Utilizing the services of a seasoned, vetted housing vendor simplifies and streamlines the temporary living process and allows individual travelers to have access to furnished accommodation options that they would not have otherwise.
Consideration: Qualities
Corporate apartments provide travelers with a myriad of qualitative advantages when compared to hotels, square footage being chief among them. Standard hotel rooms, particularly in high traffic markets, such as San Francisco, Philadelphia, and Boston, are tight and rarely include any sort of living area or true desk setup. In fact, many hotels do not have any room layouts other than studios on-site. Corporate travelers will often find themselves strapped for space in hotel rooms, especially when staying in-house for upwards of one month.
Corporate apartments, in addition to offering more space, generally have true kitchens: a full-sized refrigerator and oven range, a comprehensive kitchenware set, and ample counterspace. Storage space is generally abundant, with dressers, side tables, and large closets coming standard.
Background checks are also required in most residential communities, adding a baseline level of security amongst all on-site occupants.
Finally, corporate apartments provide a stable, community-type atmosphere as levels of transiency are far below those experienced at a hotel, meaning your neighbors aren’t constantly new and changing and leaving each morning at 11 AM.
Consideration: Using Vendors for Hotels
There are numerous benefits from utilizing NEI and its temporary living partners to secure and manage hotel bookings.
- No upfront payment is required by the traveler
- No upfront payment is required by the corporation
- Preferred pricing
- Flat, as opposed to variable, rates
- Preferred approvals (pet fees waived, multiple animals allowed, restricted breeds approved, free breakfast add-on, no-show fees waived, early check-in approval, late check-out approval, etc.)
- Check-in confirmation (no unapproved overages)
- Check-out confirmation (no unapproved overages)
- Preferred availability
- 24/7/365 support
Consideration: A Note on Airbnb Options
Airbnb accommodations may occasionally seem attractive. Property profiles often tout professional photos, positive ratings tend to attract the eye, and baseline prices can seem tantalizing low.
Though NEI and its housing partners are capable of booking via Airbnb(if client policy permits), relocating employee/family and corporate risks ultimately outweigh potential benefits:
Marketing versus Reality
Photos and descriptions cannot be validated prior to transferee arrival by NEI and its housing partners as Airbnb rentals are often provided by individual hosts who are actively renting to a myriad of travelers. The inability to verify the quality of Airbnb accommodations creates massive uncertainty for travelers and their families.
Hidden Fees
Transparency is important, and Airbnb’s pricing presentation is anything but. Beware of hidden fees associated with cleanings, date changes, and add-ons like parking.
Extension Issues
Airbnb locks travelers into specific terms and actively markets booked accommodations for dates following a traveler’s scheduled departure date. Extensions can prove to be unavailable when they are needed, forcing an unintended transfer fortraveling employees.
Shared versus Private
It’s not always clear if accommodation is shared or private and renting a room within an owner’s residence all but guarantees limited privacy.
Host Communication
Hosts can be unresponsive or unavailable, or simply unable to address potential in-house issues, leaving travelers without a strong point of contact on-site.
Duty of Care
Hidden cameras, broken locks, robberies … the horror stories are sadly real. Airbnb leaves travelers vulnerable to potentially unwelcome and/or dramatic occurrences.
Though Airbnb is a legitimate and savvy tool for casual or vacation travelers, the product offering lacks the duty of care element, professional structure, and management oversight that a corporate housing accommodation provides.
The NEI Difference for Corporate Housing
NEI’s temporary living service provision is structured and calculated, working to meet the nuanced constraints of individual travelers and their families. Services are coordinated in concert with all other policy benefits by a relocating employee’s NEI Account Executive who acts as travelers’ primary point of coordination.
Following a comprehensive family needs assessment, during which any requirements for a temporary living are identified, NEI’s Account Executives manage the entire housing process according to each employee’s specific policy criteria.
They use an interactive, proprietary temporary living directory to search and compare NEI’s current service partners. The directory details specific service partner information such as geographic expertise, property offerings, pricing, and quality ratings. This custom tool not only saves valuable time for Account Executives, but also expands the utilization of NEI’s service partner network and captures cost savings for clients.
NEI’s temporary living service partners are carefully vetted prior to network inclusion and are consistently evaluated before and after each use, regardless of how much time has elapsed since their last provision of housing. Continuous assessment promotes strict adherence to the stringent quality and service requirements of NEI and its clients.
Acting independently, NEI is not tied to any temporary housing brand through formal affiliation, ownership, or franchise agreement. This independence allows for ultimate flexibility in partnering with temporary housing providers based on service, cost, and various other criteria.
For more information or if you would like us to assess your current temporary living process, policy components, or service partner, please contact your NEI representative at any time.
The above information is for general information only and is not presented as tax or legal advice. Please consult with your tax or legal advisors and internal stakeholders before making decisions and taking any action.
