Renting a Corporate Apartment for Employee Use

Corporate apartments offer many potential benefits, both for the company, as well as the employees. However—as with practically anything in the business world—there are disadvantages too.
There are several companies offering temporary and/or permanent corporate apartment options specifically meant for employee use. Then again, should your business jump on the bandwagon or avoid this type of approach altogether?apartmentsLet’s explore the pros and cons of corporate apartment rentals. That way you can decide if this approach will benefit you and your employees:
The Pros
Arguably one of the biggest benefits of corporate housing is the fact that it allows for new employees to begin working for your company immediately upon relocating. You can offer them temporary (or even permanent) housing which ultimately eliminates the wait associated with them having to find housing, transportation, etc. before they start with your company.
Additionally—as housing might be part of their benefits package—you can deduct the cost of the apartment out of their paycheck, cutting direct employee overhead in the short term. As an added bonus, many rental properties will have several different apartments for rent, offeringdiscounts to companies’ intent on renting and/or leasing multiple apartments. This benefits them as it secures guaranteed renters, as well as lowers the overall rate you would be paying to rent/lease these apartments. Additionally you can combine more than one employee/intern to a large enough apartment reducing the overall number of apartments needed.
The Cons
Naturally, as we previously discusses, there are downsides to providing corporate apartments. For example, if your company owns the apartments, you are responsible for the upkeep, maintenance, taxes, etc. These costs can begin to overburden your company making it hard to see the benefits received by providing housing.
Another potential drawback is in shared housing complexes, where employees live with non-employees. Shared facilities such as common areas, pools, recreation areas may become overused by employees living at the apartments, as well as those that do not. This can quickly become unfair to the non-employees who live at the apartments as they do not or cannot have access to the shared facilities.
Also, another major issue is in the event of an employee termination. As most rental leases require a set limit to how long the property can be leased. Therefore, if an employee is terminated before reaching this limit your company can potentially be stuck with an apartment that, either an employee cannot use as the terminated employee tenant has not moved out or your company is paying for an apartment that is not being used.
Summary
Whether corporate apartments are in the best interest of your company is ultimately a question of benefit-to-cost analysis. Do the benefits out way the overall costs? That is something your company will have to sit down and flesh out for itself.

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