Real Estate
Corporate Rentals – Are They A Good Investment?
October 12, 2020

Corporate rentals are short-term lodging aimed at corporate entities and professionals looking for reliable but temporary housing options. In addition to hotel suites and apartment condos, standard housing properties serve as the perfect choice by corporate clients on short-term business trips. Therefore, corporate housing is a competitive market place for real estate investors with plenty of investing strategies. However, many new investors shy away from investing in properties aimed at serving corporate rental needs. Today, we’ll be discussing whether corporate rentals are a good investment for realtors.

What is a Corporate Rental?

There used to be a fine line between leisure retreats and corporate rentals in the past. However, in recent years, the lines have continued to blur with corporate rentals seeping into vacation homes, apartment complexes, and condos.

Traveling business people sign contracts, work on temporary projects, and participate in training programs in different locations. For their convenience, they often look for fully-furnished housing and availability. Moreover, short term housing options offer business people flexible leases and easy access to lodging. Therefore, if you acquire a property in an area known for business ventures you will find yourself with many tenants and will stay booked throughout the year.

Corporate housing comes in many forms; these include:

  • Short-term apartment rentals
  • Fully-furnished and serviceable apartments
  • Hotels suites for executives
  • Full corporate apartments
  • Other rentals

Apart from the usual business executives, you should expect tenants such as:

  • Military and government personnel.
  • Medical teams
  • Professors and researchers attending conferences
  • Consultants
  • Contractors

Corporate rentals offer several benefits.

  • While maintaining corporate rentals comes with a significant upfront cost, over the long term, you can make back more than you would with a steady monthly rental revenue.
  • With more frequent turnovers, you can schedule frequent maintenance of your property thereby keeping it in an excellent state. This ensures longevity and helps retain the value of the property over the years of your ownership.
  • Often, payments for corporate rentals are paid in advance or upfront. Moreover, these are handled by the organization as opposed to the individual who will be residing in the property. Therefore, you can expect payments to be on time and paid in full.
  • There is always a fear of getting the right tenants for your property. With corporate rentals, you will be dealing with respectable professionals. Therefore, you can expect them to be reliable and responsible tenants.
  • Vacation rentals may suffer from higher tax rates which narrows your ROI margin. On the other hand, corporate rentals maybe exempt from these taxes, making them easier to rent out and manage costs.


Many investors shy away from investing in corporate rentals. However, they promise to be solid investments as they pay-off quicker, allowing you to maintain your property more often, and get responsible tenants. Although an overhead of increased turnovers is a consequence of short-term rentals, with proper management you should be able to turn it into an incredibly profitable investment.

For more info, please visit: https://charleskcarillo.com/


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Richard Nevis

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