Good question – is corporate housing the most profitable rental strategy for your investment property? As a real estate investor, every decision you make ladders up to a single goal: maximizing the return on your investment. While location and property type are crucial, the most impactful choice you control is your rental strategy. Many property owners default to traditional long-term leases or dip their toes into high-turnover vacation rentals, but a third option often proves to be the most lucrative: corporate housing.
If you own a high-quality property in or near a business center, you could be sitting on an untapped source of premium revenue. Let’s compare the models using real-world data to see where the profit lies.
The Rental Strategy Showdown: A Look at the Data
To make an informed decision, you must look beyond just the monthly rent check and consider income potential, expenses, and stability.
Model 1: The Traditional Long-Term Lease (12+ Months)
This is the industry standard for a reason: it’s predictable. You get a tenant, sign a year-long contract, and collect a steady rent payment.
- Pros: Consistent cash flow and lower tenant turnover.
- Cons: Capped income potential. The flexibility to adjust for seasonal demand is non-existent, locking you into a single rate for the entire year.
Model 2: The High-Turnover Vacation Rental (e.g., Airbnb/VRBO)
This model promises high nightly rates but often comes with significant hidden costs. While potentially lucrative, the average occupancy rate for short-term rentals can fluctuate dramatically, with many markets seeing rates between 51-73% depending on the season and location, leaving significant and unpredictable income gaps. The average sits at 55.4% as of April 2025.
- Pros: Potential for very high revenue during peak seasons.
- Cons: Volatile income, intense management workload, and higher wear and tear.
The Superior Alternative: The Corporate Housing Model
Corporate housing combines the best of both worlds. It captures premium rates while offering stability that vacation rentals lack. The corporate housing market is a robust, $12 billion industry built on providing professional, temporary accommodations. It targets a clientele of relocating employees, traveling executives, and project-based professionals who need accommodations for 30 days or more. The average length of stay in corporate housing at AvenueWest is 99 days, providing months of stable, predictable income from a single tenant.
Why does this model consistently outperform the others in terms of ROI?
- Premium Rates, Justified: Corporate rentals are fully furnished and all-inclusive. This convenience commands a significant rental premium. On average, corporate housing rates can be two-to-three times that of a traditional unfurnished apartment lease.
- A Professional, Vetted Tenant: Your property is occupied by a responsible professional, and the lease is often backed by their employer. This dramatically reduces the risk of non-payment and property damage, which are top concerns for landlords.
- Reduced Vacancy and Turnover: With an average stay of nearly three months, you eliminate the revolving door of weekend guests. A single corporate tenant can provide stable, high-margin income for an entire quarter, drastically cutting down on cleaning, administrative, and vacancy costs.
The Market is Growing…Fast
The appeal of corporate housing isn’t just anecdotal—it’s backed by data. Industry experts project steady growth in this sector over the next several years. According to Global Market Estimates, the global corporate housing market is expected to grow at a compound annual growth rate (CAGR) of 6.5% from 2024 to 2029. This growth is being driven by rising business travel, corporate relocation, and the increasing demand for flexible, furnished accommodations.
The AvenueWest Advantage: Professional Management for Maximum Profit
The key to succeeding in the corporate housing market is professional management and access to corporate demand. This is where AvenueWest Global’s network excels. Our locally owned and operated franchises are experts in their respective markets. They transform your property into a turnkey executive rental and market it directly to a national network of corporations and relocation companies—a demand channel that individual owners cannot access.
You gain the benefit of maximized income without any of the hands-on work.
Ready to unlock your property’s true potential? Contact AvenueWest Global today to get connected with a property management expert in your city.
