Rent My House to Corporate Housing: 6 Best Tips

Looking to boost rental income with solid shorter-term rentals? You may wonder, “How can I rent my house to corporate housing providers?

Corporate housing is a growing trend, with companies putting employees in fully furnished homes for short or long-term stays.  And, if you use a platform to list and manage your property, you can sit back and collect rent checks without the work.

Getting your single-family home or condo on a corporate housing platform can lead to higher rental rates, faster turnover, and fewer headaches than traditional tenants.  In this post, I’ll share how to rent your house to corporate housing.

TL;DR

• Corporate housing offers fully furnished properties for temporary stays, catering to business travelers.
• Renting to corporate housing can increase rental income, reduce vacancies, and lower property damage risks.
• Finding tenants involves advertising on relevant platforms, conducting background checks, and negotiating lease terms.

Exploring the World of Corporate Housing

First things first, what is corporate housing? It is a service within the lodging industry that provides fully furnished apartments or houses for temporary stays. Businesses primarily use this service for employees in a location on an extended project or in the process of relocating.

Corporate housing falls under the alternative accommodation market, which Grandview Research forecasts to grow at a CAGR of 16.4% through 2030.

Maximizing Rental Income and Minimizing Hassle

The core question is, why should you consider renting your property to corporate housing? The answer lies in its unique benefits. Embracing corporate housing as a landlord can lead to

• Increased rent potential: Corporate renters often have higher budgets than private tenants.
• Reduced vacancy periods: Businesses frequently need employee accommodations, leading to steady occupancy rates.
• Lower risk of property damage: Corporate tenants typically keep properties in good condition thanks to strict company policies.

Step-By-Step Instructions to Rent Your House To Corporate Housing

Using these steps, you can convert your residential property into a great option for corporate housing. I’ll cover getting your house ready, establishing rental prices, identifying and screening potential tenants, negotiating lease terms, comprehending the requirements, and considering the possibility of property management.

Step 1: Preparing Your Property

The first step in renting your house to corporate housing involves preparing it to meet the high standards expected by corporate tenants. These professionals require a comfortable and convenient living environment that mirrors their home. Here’s what you need to focus on:

Deep Clean and Declutter: 

• Make sure your property is sparkling clean. Consider hiring professional cleaners if necessary.
• Clean every corner of your house, including kitchen countertops and bathroom tiles, to confirm it’s spotless and hygienic.
• Declutter to create a spacious and organized environment that is appealing to corporate renters.

Create a Neutral and Appealing Decor: 

• Choose a neutral color scheme as it’s universally appealing and creates a calming atmosphere.
• Enhance the visual appeal of your property by adding tasteful artwork, indoor plants, and elegant lighting fixtures.

Provide Essential Amenities: 

• Corporate renters prefer fully furnished properties with all the basic amenities.
• Your property needs high-speed internet, a fully equipped kitchen, modern appliances, comfortable furniture, quality linens, and more.

Step 2: Determining Competitive Rental Rates

Setting competitive rental fees is the next step when considering renting your house to corporate housing. Here are three key considerations to help you determine the right price.

Research local rental market trends

• Start by learning the rental landscape in your area.
• Check online listings, consult real estate professionals, or use data from local property management firms.
• Explore online listing platforms like Landing, Zeus Living, or CorporateHousing.com to gather insights into average rents for properties similar to yours.
• While there may not be dedicated research software for corporate or mid-term rentals, you can also look at extended-stay hotels to include in your pricing analysis.

Consider property size, location, and amenities

• Your house’s size, location, and amenities significantly influence rental fees.
• Larger homes with more rooms typically command higher rents.
• Properties in prime locations or near business districts are more attractive to corporate tenants and can demand higher rates.
• Amenities such as a fully equipped kitchen, high-speed internet, or a home office setup are appealing features for corporate housing and can justify higher rental fees

Determine additional charges for utilities and services

• In addition to the basic rent, consider other costs associated with maintaining your property.
• Factor utilities like electricity, water, garbage disposal, internet service, and maintenance services such as cleaning and repairs into your pricing strategy.

Step 3: Finding and Screening Tenants

The next step in renting your house to corporate housing is finding and screening potential tenants. This step influences your relationship with your tenant and the success of your rental business. Here’s how to approach it effectively:

Advertising

• Target your advertising efforts towards corporate housing tenants who are typically business travelers.
• Consider advertising on platforms that cater specifically to this demographic. This may include:
  • Websites dedicated to corporate housing.
  • Utilizing social media networks like LinkedIn.
  • Exploring local business directories for additional exposure.

Background checks

• Don’t solely rely on a prospective tenant’s association with a reputable corporation; conduct background checks.
• Use tenant screening services to assess their background, creditworthiness, and rental history.
• Verify their employment status with the company to ensure financial stability.
• Don’t hesitate to request references from previous landlords for further validation.

Personal interaction

• Go beyond paperwork and conduct interviews or meetups with prospective tenants.
• Use these interactions to gain insights into the tenant’s personality and lifestyle habits.
• Assess their reliability and how well they might maintain your property.
• Open and honest communication helps establish a positive landlord-tenant relationship, setting the stage for a successful rental experience.

Step 4: Negotiating Lease Terms

When renting a house to corporate housing, the lease agreement outlines the responsibilities and expectations of both parties, preventing misunderstandings down the line. Here’s what you need to know:

Draft a comprehensive lease agreement

• Your lease agreement should cover payment terms, maintenance responsibilities, and rules for property use.
• For instance, specify the agreement’s terms if your corporate tenant plans to host meetings or events on your property.
• Use resources like LawDepot to help you draft a comprehensive and legally sound lease agreement.

Include provisions for extended stays and termination

• Recognize that corporate tenants often require flexibility in their lease terms due to unpredictable business schedules.
• Consider incorporating clauses allowing extensions or early termination without harsh penalties to accommodate their needs.

Discuss security deposits and insurance

• Security deposits serve as a safeguard against potential damages to your property.
• Clarify who will take out a renter’s insurance policy within the lease agreement.
• Because there’s typically a high value of items in corporate housing, the tenant should have a policy in place.

Step 5: Meeting Corporate Tenant Needs

To rent your house to corporate housing successfully, identify and meet the specific needs of corporate tenants. These may vary based on the tenant’s job role, lifestyle preferences, or length of stay.

Identify Corporate Tenant Needs

Corporate tenants often value convenience and comfort over cost. They might require:

• Fast and reliable internet connection for work-related tasks.
• Proximity to their workplace or public transportation.
• Quiet environment for rest and focus.
• Amenities like a home office setup, fitness equipment, or a fully-equipped kitchen.

Adapt Your Property

• Once you’ve identified these requirements, it’s time to adapt your property.
• Consider setting up a dedicated workspace within the property, especially if many tenants work from home.
• Add a high-speed internet connection, a must-have in the digital age.
• Provide quality furnishings and modern appliances for a comfortable living experience.

Provide Necessary Services & Support

• Offer services such as regular or on-demand cleaning to maintain the property in excellent condition.
• Be responsive and prompt in addressing any maintenance requests or queries the tenants might have.

Step 6: Considerations for Property Management

If you’re considering renting your house to corporate housing, it’s worth examining the potential benefits of hiring a property manager. A competent property manager can streamline the rental process, from finding and screening potential tenants to negotiating lease terms and agreements.

One distinct advantage of working with property managers is their vast experience dealing with corporate clients. They understand the specific requirements of such tenants and are well-equipped to adapt your property accordingly. They also can access networks and platforms to expedite the tenant-finding process.

Here’s what you should know:

Finding a Reputable Property Management Company:

• To start, seek out reputable property management companies.
• Begin by checking online reviews and ratings to gain an initial impression.
• Personal recommendations from fellow landlords or real estate investors can be more reliable.
• Reach out to trusted sources for their suggestions on reputable property management companies in your area.

Understanding Costs:

• Property managers can alleviate many routine tasks in renting a house to corporate housing, but this service comes at a cost.
• Property management fees typically range between 8-12% of the monthly rental income.
• If you hire a management company, add these costs into your financial planning and analysis for setting competitive rental fees.

You might also explore using a comprehensive service like Zeus Living, a corporate housing company that handles all aspects of your rental, making the process easy.

Key Factors to Consider for Successful Corporate Housing Rentals:

To rent your property to corporate housing, consider areas that can impact your success as a landlord in the corporate housing market. Here are some factors that you should keep in mind:

Understanding Your Target Market

Begin by understanding the specific market segments that can benefit from corporate housing. This includes a diverse range of professionals in need of temporary accommodations, such as:

• White-collar workers on changing job assignments and blue-collar workers on extended contracts.
• Displaced homeowners in transition.
• Executives and project managers that have short-term assignments.
• Energy and medical experts who are working on multi-month projects.
• Film crews working on location.

Alternatives to Providing Corporate Housing

Consider leasing your rental property to a tenant for at least one year. This strategy eliminates the need to provide furnishings, cover utility bills, and arrange cleaning services. While this long-term rental approach lightens your operational responsibilities, it may also lower rental rates.

Final Thoughts and Personal Insights

Renting your house to corporate housing can be profitable. This strategy often results in higher rental income compared to traditional long-term leases. Additionally, corporate rentals tend to maintain consistent occupancy and carry less risk of property damage.

My experience with long-term single-family and multi-family rentals taught me the importance of investing time in tenant screening and establishing a solid rental agreement.  

Consider corporate housing as a potential avenue to maximize your returns. This could mean increased rents and reduced vacancies.

By enhancing your property, providing necessary amenities, setting competitive rates, and welcoming this affluent market, you could significantly optimize the income potential of your investment property.

Rent My House to Corporate Housing FAQs

What kind of properties are suitable for corporate housing?

Corporate housing is typically suitable for all properties as long as they can be furnished to a high standard and offer the comforts and conveniences that corporate tenants expect. Property owners in this space have various housing options, such as condos, apartments, houses, and even luxury accommodations.

The most suitable properties for corporate housing are those in good locations, preferably near business districts or major corporations. They should be in safe, secure neighborhoods with easy access to public transportation, restaurants, shops, and other amenities.

Is Zeus living worth it?

Zeus Living partners with property owners to convert their spaces into corporate housing rentals fully managed by Zeus. This allows owners to tap into the growing business travel/temporary housing market.

This could be an ideal option if you’re seeking a ready-to-go investment and prefer to have another party manage your property’s marketing and operational aspects.

Do I need special insurance for a corporate rental?

A landlord offering corporate rentals typically needs a combination of different types of insurance offered by major insurance companies. Here are the primary types:

• Landlord Insurance: This insurance covers the physical property, including the building and structures like garages or sheds. It also protects liability if a tenant or visitor is injured on the property. However, it may not cover all situations that can arise in a corporate rental, particularly regarding contents provided for the tenant’s use.

• Commercial Property Insurance: This type of insurance is important as it covers the business assets within the property, such as furniture, appliances, and other items provided for the tenant’s use. Commercial property insurance is usually part of a Business Owner’s Policy (BOP).

• Business Income Insurance: Also often included in a BOP, this insurance can cover loss of rental income if the property becomes uninhabitable due to a covered loss.

• Liability Insurance: Most landlords require business tenants to carry commercial lease insurance. This insurance covers legal costs and payouts if the tenant is found legally responsible for injury or property damage.

• Business Renters Insurance: If your tenants are businesses, many landlords require them to show proof of Business Renters Insurance. This policy can provide property damage, business income, and liability coverage.

Insurance needs can vary depending on specific circumstances, so it’s always best to consult with an insurance professional to make sure you have appropriate coverage for your corporate rental property.