Regular Furnished vs. Concierge Style

[photon]

Regular furnished means to me someone who just rents a place for a while furnished but pays their own TV and Internet and takes care of everything themselves.

Concierge I mean something more like an O&G exec where everything is included, TV, Internet, housecleaning, laundry, etc.

What kind of demand is there for the latter kind? How much more than a regular furnished unit would that go for? Is it enough to account for the likely increased vacancy so that the end result is a higher income?

I've seen management fees of like 25% for such a thing, which seems like it would eat any profit but I'm not sure how much extra one could get for that kind of rental.

[Property Manager DB]

Originally Posted by photon

Regular furnished means to me someone who just rents a place for a while furnished but pays their own TV and Internet and takes care of everything themselves.

Concierge I mean something more like an O&G exec where everything is included, TV, Internet, housecleaning, laundry, etc.

What kind of demand is there for the latter kind? How much more than a regular furnished unit would that go for? Is it enough to account for the likely increased vacancy so that the end result is a higher income?

I've seen management fees of like 25% for such a thing, which seems like it would eat any profit but I'm not sure how much extra one could get for that kind of rental.

There are a lot of variations of what brokerages and landlords are now referring to as 'furnished'.

You are right, generally if a place is being advertised as merely furnished it includes only the furniture and maybe some odds and ends such as bed sheets. Whereas an executive rental is ready to move into and includes extras such as cable/internet and maid service. Executive rentals also include all the essentials (which sometimes are overlooked) such as cutlery, pots/pans, coffee machine, shower towels, ironing board, etc. Additionally, executive rentals usually have higher end furniture are located downtown or close to transit.

At Unison Realty, there is a mark up for short term leases (less than 3 months) which generally balances out the increased vacancy when looking at the long term profitability.

As for the demand, there has been a slight decrease in the demand for executive rentals due to O&G traveling budget cuts and other factors. That being said, the vacancy rate in Calgary is still quite low and people will always need a place to live.

Yes, the management fees are higher for a furnished and properties furnished by Unison by as you mentioned the property can be rented out for much more. The mark up also has many factors but as an example this unit in the London Tower (Photos) we are advertising as both unfurnished and furnished.
Unfurnished without Utilities: $1,800
Fully Furnished with Utilities: $2,900

It always depends on the unit as to which option will create the most return for owner.