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Corporate Housing Spread Calculator

Corporate housing operators arbitrage between apartment rents and daily corporate rates.

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Monthly spread

$309

Monthly revenue

$4,329

Monthly cost

$4,020

How the math works

Revenue = daily rate × 30 × occ. Cost = rent + furniture + utilities + cleaning.

$185 × 30 × 78% = $4,329 revenue. $3,200 + $300 + $240 + $280 = $4,020 cost. Spread $309/mo.

How to Use

  1. Enter underlying apartment rent.
  2. Enter corporate daily rate.
  3. Enter occupancy %.
  4. Enter furnishing amortization monthly.
  5. Enter utilities + wifi cost.
  6. Enter cleaning + maintenance monthly.
  7. Read monthly spread.

Frequently Asked Questions

Corporate housing business model?

Operator (Oakwood, BridgeStreet, AvenueWest, Churchill) signs 12-month apartment lease at market rent. Furnishes apartment ($8-20k). Markets to corporate clients (relocations, contractors, project teams) at daily rate 2-3× market rent on nightly basis. Occupancy target: 70-85%. Profit from spread between daily rate × occupancy vs monthly apt lease.

Corporate rate structure?

30-day minimum typical (to avoid STR permits in many cities). Rate: $80-200/night ($2,400-6,000/month). Luxury urban markets: $300-600/night. Premium over apt rent: 1.8-3.5×. Includes furnished, utilities, wifi, housekeeping (weekly or bi-weekly). Target guest: insurance relocations, corporate project teams, executives, travel nurses, film crews.

Breakeven math?

Apt rent $3,000/mo. Furnishing amortization $300/mo. Utilities/wifi $250. Cleaning/maintenance $300. Total cost $3,850/mo. To break even at $150/night, need 26 nights/month = 87% occupancy. Tight margin — most operators target 75%+ occ at $180-200 rate to generate $1,500-2,500 monthly profit/unit. Scale across 20-100 units for meaningful business.

Risks?

(1) Occupancy vacancy risk — 50-60% occupancy means loss. (2) Apt landlord concerns about subletting: need lease permission. (3) STR regulations in tightening markets (SF, NYC, Amsterdam). (4) Deposit + furnishing loss on tenant damage. (5) Concentration risk with corporate clients (loss of 1-2 contracts = vacancy crisis). (6) Cleaning/turnover costs on shorter stays.

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