Key Takeaways

  • Corporate leasing involves companies renting housing or office space for business purposes, often short- to medium-term.
  • Corporate housing lease agreements should clearly define responsibilities, payment terms, and any unique tenant expectations.
  • Corporate tenants may negotiate terms such as early termination, furniture provisions, and flexible lease durations.
  • Understanding insurance, liability, and maintenance responsibilities is essential to avoid disputes.
  • Legal review of corporate leasing agreements ensures enforceability and compliance with local laws.

A corporate housing lease agreement is a contract that can be used when renting a corporate house or apartment. When drafting such an agreement, there is a variety of information that should be included, such as how long the contract will be and the amount of lease payments.

What Are Lease Agreements?

If you own a piece of property and want to rent it out to a tenant, he or she should sign a lease agreement. A lease agreement is a type of contract and is most commonly used by property management companies.

Most property managers or owners will use a lease agreement template, as every tenant will need to sign this document. There are several different types of lease agreement templates available online, and you can also draft a lease agreement with the help of an attorney.

Your lease agreement will likely need to include specific information related to the property you are renting. If you plan to use a template, you should have the document reviewed by your attorney to make sure that it includes the right information. Spending money on an attorney will be well worth it if you're able to protect yourself from future contract disputes or broken agreements.

Understanding Corporate Leasing

Corporate leasing refers to a business arrangement in which a company, rather than an individual, signs a lease for residential or commercial property. This arrangement is commonly used for relocating employees, housing business travelers, or hosting clients for extended periods. Unlike personal leases, corporate leases often involve enhanced flexibility and may include furnished accommodations, utility inclusions, and cleaning services.

Corporate leasing provides benefits such as:

  • Streamlined housing logistics for employees
  • Consolidated billing and expense management
  • Shorter lease durations with renewal options
  • Flexible termination clauses suited to dynamic business needs

However, corporate tenants may also face higher rental rates and stricter vetting criteria from landlords.

Tips For Renting Your Property

Before renting corporate housing to a tenant, there are several steps that you need to take. First, you should have your potential renter fill out and submit a rental application. If you approve the application, you will need to provide your new tenant with a variety of documentation, including:

  • Booking confirmation.
  • A rental agreement.
  • An invoice for their first payment.
  • Your property's pet policy, if you have one.

The most important of these documents is the rental agreement, which will tell your tenant the rules for living on your property and will let them know what services, if any, you will provide. A firm rental agreement can help your tenant feel comfortable moving into your property. You should only accept payment from your tenant after they have signed the rental agreement. A variety of local and state laws may apply to your rental agreement, so you should have your attorney review the agreement to make sure that it is legal. Your agreement may also need to include specific terms based on the location of your property.

Key Considerations for Corporate Leasing Landlords

Before entering into a corporate lease, landlords should assess whether their property meets the needs of corporate tenants. Important factors include:

  • Location: Proximity to business districts, transportation hubs, and restaurants is often a top priority.
  • Amenities: Fully furnished spaces with Wi-Fi, laundry, and utilities included are highly desirable.
  • Insurance and Liability: Ensure proper coverage in case of damage or business-related liabilities.
  • Security Deposits and Guarantees: Corporations may offer letters of responsibility or corporate guarantees instead of traditional deposits.

It’s also crucial to determine who will occupy the unit—employees, clients, or contractors—and set occupancy limits accordingly.

Information to Include in Your Lease Agreement

Drafting a corporate housing lease agreement is a very delicate process. You should be sure that you're including the correct information so that the document will be legally binding. When writing your agreement, you should dedicate the first section to information about the tenant and include their reservation number and contact information.

Next, you will need a section that describes the corporate rental property. In addition to the address and phone number of the property, you should describe the tenant's parking access and how many bathrooms and bedrooms the unit contains.

The rental information section of your lease agreement will describe some basic terms of the lease, including:

  • When the tenant will arrive and when they will leave. You must give your tenant 30 days' notice prior to their departure date.
  • A check-in and check-out time.
  • Policy on extending the lease agreement, if applicable.
  • The deposit amount required to reserve the rental.
  • How much maid service costs, if it is available.
  • The renter's monthly rate.
  • The departure fee, if one is required.
  • The pet policy and the fee for keeping pets in the rental.

One of the most important sections of your rental agreement will describe when rental payments are due. You could require, for example, that the tenant make their first rental payment before arriving at the property, and that subsequent payments will be due on the first of every month. You can also require penalty fees for late payments.

When renting corporate housing to a tenant, you may want to require tenants to reserve the rental with a credit card and provide a corporate letter of responsibility. If you require a deposit fee, you should describe circumstances in which you would be allowed to retain the fee, including damage to the rental unit.

Legal Review and Compliance for Corporate Leasing

Because corporate leases are often more complex than standard residential agreements, legal review is highly recommended. Consider the following:

  • Compliance with Local Laws: Ensure your lease adheres to state-specific landlord-tenant regulations.
  • Zoning and Use Restrictions: Verify that corporate housing use is permitted in your property's zoning classification.
  • Dispute Resolution Mechanisms: Include provisions for mediation or arbitration to resolve lease disputes efficiently.
  • Jurisdiction Clauses: Clarify which state laws govern the lease, especially if the company is based in another state.

These legal protections are critical for safeguarding your interests and ensuring smooth lease execution.

Special Clauses for Corporate Housing Lease Agreements

In addition to standard lease terms, corporate leasing agreements often include clauses that address the unique nature of business tenancy. These may include:

  • Substitution Clause: Allows the company to substitute one employee for another during the lease term without renegotiating the agreement.
  • Furnishings Inventory: An itemized list of all furniture and appliances included in the lease.
  • Termination Flexibility: Early termination provisions or rolling month-to-month extensions to accommodate project changes.
  • Cleaning and Maintenance Terms: Specifies who is responsible for routine cleaning, landscaping, or maintenance tasks.
  • Liability Waivers and Insurance: Requires proof of renter’s insurance and may define liability limitations for corporate occupants.

Having clearly defined clauses ensures the lease remains enforceable and reduces the risk of misunderstandings.

Frequently Asked Questions

  1. What is the difference between a corporate lease and a traditional lease?
    A corporate lease is signed by a business rather than an individual and typically covers housing for employees, often with added amenities and flexible terms.
  2. Can a corporate lease be short-term?
    Yes. Corporate leases often span 30 to 90 days or more and are designed to be flexible to accommodate business travel and relocations.
  3. Who is responsible for damages in a corporate lease?
    Typically, the company is financially liable for any damages beyond normal wear and tear, although individual employees may also be held accountable depending on the lease terms.
  4. Is a corporate lease more expensive than a personal lease?
    Generally, yes. Corporate leases often include furnished units and services such as cleaning, utilities, and internet, which increase the overall cost.
  5. Should landlords require a corporate guarantee?
    Yes. A corporate guarantee or letter of responsibility helps ensure the company, not just the occupant, is liable for lease obligations.

If you need help drafting a corporate housing lease agreement, you can post your legal needs on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.