Do you own an investment property that you wish could generate more passive income? Have you considered corporate leasing?

    As an owner of hotels near corporate centers, I’ve discovered the power of negotiated corporate rental agreements to maximize occupancy and revenue.

    In this article, you’ll discover how to position your asset to attract reliable corporate tenants and maximize your property’s revenue potential.

    Let’s explore how a corporate lease could provide steady hassle-free income for your property and tips for marketing it to corporate tenants.


    • Corporate leasing provides stable income by renting directly to corporations for temporary housing.
    • Legalities of corporate leases on Airbnb depend on local laws; research and obtain necessary permits.
    • Challenges involve market fluctuations, tenant creditworthiness, and thorough screening; thorough research and preparation are key.

    What is a Corporate Lease?

    A corporate lease is an agreement between a property owner and a company. Instead of renting your property to individual tenants, you lease it directly to a corporation. The corporation then provides the space to its employees or clients who need temporary corporate housing.


    Is a Corporate Lease on Airbnb Legal?

    Yes, a corporate lease on Airbnb is legal.  But your local laws play a role.  You might need special permits or permissions to lease your property.  Research the rules to avoid any legal issues.

    Local Laws and Regulations

    Reserach and follow local laws and regulations before signing a corporate lease. These rules vary depending on the city or region you are in.

    Here are a few key points to consider:

    • Registration Requirements: Property owners must register their rental properties with local authorities in some areas. For instance, in Scottsdale, Arizona, the city mandates the registration and licensing of rentals that are less than 30 days long.

    This process promotes compliance but also contributes to the overall safety and regulation of the rental market.

    • Length of Stay: Different jurisdictions may have rules regarding the minimum or maximum length of stay for guests.

    A few years ago, I was looking at a vacation rental property located in a neighborhood with an HOA.  The HOA only allowed for rentals of 30 days or more.  Cities or local jurisdictions may have similar rules.

    • Taxes and Fees: You may be required to collect and remit taxes on the income generated from your corporate lease, depending on your location. Learn about the local tax regulations to stay in compliance.
    • Zoning Restrictions: Certain areas may have zoning restrictions limiting short-term rentals. Check if your property qualifies for this type of leasing arrangement.

    Benefits of Corporate Leasing for a Property Owner

    Corporate leasing offers several benefits including:

    • Guaranteed Income: You can enjoy peace of mind with guaranteed monthly rent with a corporate lease. The company leasing your property is responsible for paying on time, reducing the risk of missed payments.
    • Longer Stays: Corporate leases usually involve longer stays, unlike traditional vacation rentals, where tenants may come and go quickly. It means less turnover and fewer vacancies, providing stability and consistent income.
    • Minimal Hassle: You often have fewer responsibilities when you lease to a corporation versus individual tenants. The company handles any maintenance requests that make your life much easier and simplify the property management aspect of your business model.
    • Professional Relationships: Building relationships with a reputable company can lead to future opportunities. If they have a positive experience staying at your property, they may return or recommend you to others, expanding your network.
    • Enhanced Security: Corporate leases often involve background checks and security measures that make a safer environment for you and the corporate guests.

    Corporate leasing offers a convenient and reliable way to generate income from your property with fewer headaches and more stability. 🎉

    Challenges to Consider

    Be aware and prepare for challenges that may arise from corporate leasing such as:

    • Market Fluctuations: The value of your property can go up and down. It can affect how much rent you can charge and for how long. Keep an eye on the real estate market in your area to make necessary adjustments.
    • Tenant Creditworthiness: Make sure the company renting your property can be trusted to pay rent on time. Research and check if the company has a good history of paying bills. You can also ask for references or a security deposit to be safe.

    Research and thorough tenant screening processes are key to overcoming these challenges for a profitable corporate leasing experience.

    Get Started with Corporate Leasing

    Here are the simple steps to consider to get started with corporate leasing for Airbnb:

    1. Check the Legality:

    Make sure that corporate leasing is allowed on Airbnb in your area. Some locations may require permits or approvals from local authorities. Follow the rules and regulations.

    2. Understand the Corporate Housing Market:

    Learn about the corporate housing market in your area. Understand the demands, preferences, and expectations of corporate travelers. Here are some ideas to  help you tailor your property and attract the right tenants:

    • Do market research on corporate housing trends in your area. Look at reports, statistics, and news articles to understand demand, preferences, and which companies need corporate housing.
    • Talk to corporate travel managers at major local employers. Ask what they look for in corporate housing and what amenities or policies their employees expect.
    • Reach out to other corporate housing providers in your area. Ask about their experiences with occupancy rates, rental periods, amenities, and marketing strategies.

    3. Prepare Your Property:

    Get your property ready for corporate leasing. Make sure it’s clean, well-maintained, and furnished appropriately. Consider including amenities like reliable Wi-Fi, comfortable workspaces, and needed supplies.

    4. Create a Professional Listing:

    Write a compelling listing for your property. Use high-quality photos and write a clear and detailed description showcasing the features and benefits that would appeal to corporate guests.

    5. Set Competitive Pricing:

    Research similar properties in your area and set competitive pricing for your corporate lease. Consider location, amenities, and market rates to attract potential tenants.

    6. Build Relationships:

    Network with local businesses, relocation companies, and professionals who may need short-term employee accommodations. Establishing connections can lead to referrals and repeat bookings.


    Get Your Corporate Lease Agreement Right

    Consider these important factors when creating your corporate lease agreement:

    • Transparent and Detailed Terms: Clearly outline all the terms and conditions of the lease agreement. Be specific about the duration, rent amount, payment schedule, and any additional charges or fees. It helps avoid confusion or disputes in the future.
    • Property Maintenance: Define the responsibilities for property maintenance and repairs. Specify if the tenant or the company will be responsible for maintaining the property. It will make sure that the property remains in good condition throughout the lease period.
    • Insurance Requirements: Determine whether the tenant or the company will be required to provide insurance coverage for the property. Discuss any specific insurance requirements and verify that they are clearly stated in the lease agreement.
    • Termination and Renewal: Clearly define the terms for lease termination and renewal options. Specify notice periods required for termination or renewal and any penalties or fees associated with early termination. It allows both parties to plan and know what to expect.
    • Security Deposit: Discuss and agree upon the amount of the security deposit and the conditions under which it will be refunded or withheld. Clearly state the conditions for using and returning the security deposit to avoid misunderstandings.
    • Legal Considerations: Consult with a legal professional to make sure that your lease agreement complies with local, state, and federal laws. It helps protect both parties’ rights and assures a legal agreement.

    Market Your Property

    Try these strategies to market your property as being ideal for corporate lease:

    Highlight Proximity to Business Centers:

    Emphasize the proximity of your property to major business centers, office parks, or industrial areas. Corporate tenants value convenience and being close to their workplace.

    Showcase Modern Amenities:

    Highlight your property’s modern amenities, such as state-of-the-art technology, well-equipped meeting spaces, or fitness facilities. These features can make your property more appealing to corporate tenants.

    Flexible Lease Terms:

    Offer flexible lease terms that cater to the needs of corporate tenants. Consider shorter-term leases, extended stay options, or the ability to customize lease agreements based on specific requirements. Flexibility is key for businesses seeking temporary or long-term housing solutions.

    Focus on Security and Privacy:

    Emphasize the security measures in place at your property. Corporate tenants often prioritize safety and privacy, highlighting features like gated communities, 24/7 security, or secure access systems.

    Provide References or Case Studies:

    Share references or case studies from previous corporate tenants who have had successful experiences at your property. Positive testimonials can instill confidence in potential tenants and showcase your property’s value to businesses.

    Professional Networking Opportunities:

    If your property is part of a community or complex, promote any networking opportunities available to corporate tenants. It could include shared workspaces, networking events, or access to industry-specific resources. It can appeal to businesses looking to connect with like-minded professionals.

    You can position your property as an ideal choice for corporate leases by implementing these marketing strategies.



    Pursuing a corporate lease can be a smart strategy for property owners looking to maximize occupancy and secure consistent income. With some research and preparation, you can position your property to attract and retain a corporate lease from major local employers.

    In my hotel business, corporate contracts have been instrumental to maintaining high occupancy rates and steady revenue, even in slower seasons when leisure travel declines. The corporate housing market offers similar benefits of stability and predictable income through short-term rental agreements.

    If you own the right property and location, corporate housing is worth exploring for your real estate investing business. Do your homework, develop a strong offering, and you too can prosper through a corporate lease.


    Corporate lease FAQs

    Is subletting and corporate leasing the same?

    Subletting and corporate leasing are not the same.

    Subletting is when someone already has an apartment or house lease and rents it to another person. It’s like renting your rental to someone else. The original tenant becomes the “sublessor,” and the new person becomes the “sublessee.”

    Subletting is usually for a shorter period, like a few months, and the sublessee pays rent to the sublessor.  Quick note…. Subletting is an approach to use with rent arbitrage.  

    Corporate leasing is when a company leases a property for its employees. The company is the one signing the lease agreement with the property owner. It is often for longer durations, like a year or more.

    Can I terminate a corporate lease with issues with the corporate client or their employees?

    Yes, you can terminate a corporate lease if there are issues with the corporate client or their employees. Review the terms and conditions of the lease agreement to understand the specific circumstances under which termination is allowed.


    Is it necessary to offer amenities and furnishings on my rental property for corporate clients?

    Offering amenities and furnishings for corporate clients is necessary. It makes things more convenient for the corporate clients and makes your property more attractive for this target market.