Corporate Housing Programs – How they add value for the Corporate and the User
For the Corporate rolling out a corporate housing program, there are a number of areas where they can expect to see benefits. Those benefits can be categorised as follows:
A Corporate Housing program will involve establishing a portfolio of properties to meet the continuous needs of the business to house people on temporary assignments, typically from a week to a year. The properties will be procured to meet the needs of the organisation for a good quality, harmonised standard of accommodation, in a good area within close proximity of work sites. Once the properties have been procured, ideally in clusters or close proximity to each other, there’s no reason why those properties can’t be utilised for a number of years, provided the need for housing continues. Assignees do not need to spend time out of the office viewing properties – instead, on arrival, they will be moved directly into a company property saving time on viewings, lease negotiations, utility set up etc etc.
The accommodation will also be managed by the agent on behalf of the corporate meaning that residents have a single point of contact to manage all property related matters. Agents will be performing to agreed SLA standards, typically significantly more service orientated than the service delivered by letting agents/landlords.
Quality & Safety
A corporate housing program will ensure that a harmonised standard of accommodation is provided across the board. Every assignee will benefit from a centrally approved standard of accommodation providing an agreed range of amenities and furnishings. The Corporate Housing agency will be responsible for ensuring that every property complies with Gas and Electrical Equipment Safety regulations. There will also be an agreed level of ongoing services such as regular cleaning, linen change and maintenance services to ensure that properties are maintained to a good standard.
There are a number of ways in which a Corporate Housing Program can be used to drive down cost:
- Reduced Hotel Usage – properties can be made available to move into immediately on an assignees arrival. Where spaces exist within the portfolio of properties, those spaces can be used for transitory stays instead of hotels delivering further cost savings of up to 40%;
- Reduced Serviced Apartment Spend – using leased properties instead of Serviced Apartments can drive further savings of up to 20%;
- Reduced Relocation Expense – for assignees requiring housing for less than a specified period (typically 1 year), by placing them directly into a Corporate Housing portfolio, the need for relocation expenses (home viewings, settling in expenses etc) are eliminated;
- Reduced Per Diem Cost – for assignees living in corporate housing with cooking and washing facilities, the need for substantial per diem payments is significantly reduced.
Tax & Cost Reporting
Instead of paying individual allowances or settling individual invoices, a single consolidated invoice will be produced each month along with a range of reports providing visibility of:
- Total cost per head per night;
- Taxable Status of Assignees;
- Trends Analysis;
For the User, Corporate Housing (whether leased or Serviced Apartments) is increasingly the accommodation of choice, particularly for assignments of a week or longer. Corporate Accommodation provides employees with a range of benefits:
- Far more space than a typical hotel room;
- The ability to live in a more sustainable way – cooking their own meals, washing their own clothes;
The accommodation is generally spacious enough to enable friends and family to visit;
- Particularly for assignees commuting home at weekends, accommodation enables them to leave their belongings on site.