How Texas Corporate Homes carefully manages inventory levels to prevent market saturation while ensuring strong demand for our properties.
Texas Corporate Homes uses best-in-class analytics, proprietary insurance claim demand insights, and a deep understanding of competitive supply and demand dynamics to set and manage inventory levels in our markets. Our goal is to ensure optimal performance for property owners in our mid-term housing program by strategically balancing supply with demand.
Our primary focus is maximizing performance and, ultimately, cash flow for our property owners. Just as we optimize pricing and occupancy, we carefully manage inventory levels to prevent market saturation while ensuring strong demand for our properties.
TCH relies on the same best-in-class research and analytics tools that commercial real estate developers use to determine how many properties a market can support. We assess multiple factors to make data-driven inventory decisions, including:
By leveraging these insights, TCH ensures that our inventory levels align with expected demand, preventing oversupply while maintaining a steady stream of bookings.
With 45+ commercial partners, including national insurance and corporate housing providers, our network reach extends across multiple markets. The more properties we manage, the stronger our position as a “one-stop shop” for mid-term housing. This network effect boosts overall demand and bookings for all TCH properties.
In major Texas markets like DFW, Houston, and Austin, 5-10% of homeowners file insurance claims annually, with 20-25% of those requiring temporary housing. This means that 1-2.5% of all owner-occupied households need mid-term rentals each year.
While these trends hold across large property datasets, claim volumes can fluctuate significantly in smaller samples. Over time, TCH homes maintain an average occupancy of 80%, but short-term dips are normal.
Attempting to draw conclusions from a small sample of properties in a short time frame can be misleading. Short-term occupancy variations are expected in mid-term rentals, particularly in insurance placements and corporate housing. We understand this can be frustrating, but it's the nature of the industry.
Since insurance claims occur unpredictably in any given area, TCH focuses on winning as many placement opportunities as possible. Thanks to our partnerships with top placement companies, we compete for nearly every insurance housing placement in our markets.
However, guest preference ultimately determines winning a booking, and losing even one booking can make a significant difference. For small portfolios, a single lost tenant could shift annual occupancy from 90% to 60%.
This is why we emphasize multi-year performance analysis rather than short-term fluctuations. Our data-driven approach ensures that inventory levels are optimized for long-term success, leading to stronger bookings and revenue for our property owners.