Corporate Housing 101: Why Will Someone Else Pay for My Housing?
Short term furnished apartments, also known as corporate housing or corporate apartments, were originally created for business executives. Because the stay was for an extended but temporary duration, hotels were usually excluded from consideration due to their expense and lack of amenities, like kitchens. Thus, a market developed for short term furnished apartments for two reasons:
"Short term" because the stay is shorter than the typical lease term of a year or longer
"Furnished" because the resident does not move their furniture
However, because of its convenience, corporate housing can be useful in many other circumstances. In many situations, you may able to have someone else pay for corporate housing. Here are five situations where someone else might pay for short term furnished apartments.
Businesses Relocating Employees
About 40% of residents of short term furnished apartments are relocating employees. Unfortunately, recent changes in federal tax law drastically limited the deduction for moving expenses for most taxpayers. While you may want to consult with a tax professional to see if moving expenses incurred after 2018 qualify, be forewarned that most non-military taxpayers no longer qualify for this tax deduction.
As a consequence, you may wish to negotiate with your new employer. In many cases, a business will reimburse you for the cost of corporate housing when you move. Knowing the hardship this tax deduction had on relocating workers, some employers may be willing to reimburse part or all of the cost of corporate housing while the relocating employee searches for a new home.
Whether you are a consultant, contractor, or employee, short term furnished apartments may be needed when you are on a temporary assignment. Examples of temporary assignments that necessitate corporate housing include:
Accountants and auditors examining financial records
Lawyers negotiating deals, litigating cases, or deposing witnesses
Doctors consulting on special cases
Expert witnesses testifying in court
Engineers and programmers working on new projects
Entertainers performing in a production
In many of these circumstances, your housing expenses may be part of your contracted compensation. If they are not, you may try to negotiate to the cost of corporate housing with your employer.
Government and Military
Part of the appeal of government and military jobs is that the government tends to pay for, or reimburse, all job-related travel expenses. For assignments lasting longer than a few days, corporate housing is often less expensive and more convenient for these organizations than hotels.
In New York, for example, diplomats from all over the world work at the United Nations headquarters. These diplomats, including their diplomatic staff and security, will require housing while on assignment to New York.
People Displaced by Disasters
People who have lost their belongings and are temporarily homeless can also benefit from short term furnished apartments. Whether they're searching for a new home or waiting while their homes are repaired or rebuilt, corporate housing options are a natural fit for temporary housing.
Keep in mind that these disasters are not limited to hurricanes or flooding. Even a house fire can render someone temporarily homeless while finding new housing or waiting for his or her insurance company to repair their home.
Corporate housing is even more appealing thanks to Additional Living Expense (or ALE) coverage. These programs will reimburse some or all of the costs of temporary housing to the individual. While it may be advisable to consult with the insurer about expenses before committing to corporate housing, those with ALE coverage should be able to make the case that the insurer is responsible for covering the costs.
Compensation is rarely cited as a reason to teach. However, grants are often available for researchers, professors, and even students to travel as part of their academic careers. Examples of ways grant money may be used for short term furnished apartments in NYC include:
Researchers that require access to NYC facilities or data
Visiting professors at NYC colleges and universities
Students, professors, and researchers traveling to NYC to present findings and papers
Corporate housing is not just for corporations anymore. In many situations, corporate housing may be paid for, or reimbursed by, someone else. For more information, don't hesitate to reach out to Taylor Made Furnished Apartments today.