Corporate Relocation Rentals with DSCR Loans

Corporate relocating employees need temporary housing for 3-12 months while they sell their old home, find a new one, and settle into a new city. For DSCR loan investors, corporate tenants represent premium rents and reliable income backed by their employer.

Why Corporate Tenants Are Premium

• Employer-backed rent — the company often pays directly or reimburses
• Higher budgets — corporate housing allowances typically exceed market rent by 20-40%
• Professional behavior — career-focused tenants with reputations to maintain
• Defined timeline — clear lease terms (3-12 months)
• Low damage risk — professional tenants treat properties well

Target Markets

Corporate relocations cluster around:

• Corporate headquarters — Fortune 500 cities
• Tech hubs — where companies recruit nationally
• Military installations — PCS (permanent change of station) moves
• Government centers — Washington DC metro, state capitals
• Growing metros — cities attracting corporate expansions (Nashville, Austin, Raleigh)

Setting Up for Corporate Tenants

Property Standards

Corporate tenants expect higher-quality housing than typical renters:

• Updated kitchen and bathrooms
• Modern appliances (stainless steel preferred)
• Clean, neutral décor
• Good school district access (families)
• Safe, walkable neighborhood
• Garage parking

Furnished vs. Unfurnished

• 3-6 month assignments: Furnished is expected ($2,500-$4,000+/month)
• 6-12 month assignments: Unfurnished is acceptable ($1,800-$2,800/month)
• Furniture package option: Offer a furniture rental add-on for flexibility

Marketing Channels

• Corporate relocation companies (Cartus, SIRVA, Graebel)
• Furnished Finder and corporate housing platforms
• Local relocation specialists
• Company HR departments (build direct relationships)
• Real estate agents specializing in relocations

DSCR Considerations

Corporate housing generates higher rent than standard long-term leasing, which improves your DSCR ratio. However, gaps between corporate tenants (2-4 weeks between assignments) reduce effective occupancy.

Effective annual income calculation:

• Monthly rent: $3,000
• Occupancy: 85% (gaps between assignments)
• Effective monthly income: $2,550
• DSCR calculation should use this conservative figure

Most DSCR lenders will underwrite at the long-term market rent regardless, giving you upside above the qualifying income.

Corporate Housing Lease Structure

• Lease term: 3-12 months with option to extend
• Utilities: Typically included in furnished corporate housing
• Cleaning: Monthly or bi-monthly cleaning service included (differentiator)
• Payment: Direct company payment or tenant reimbursement
• Security deposit: Standard (one month's rent)
• Early termination: Build in a 30-day notice clause (corporate plans change)

Financial Comparison

The premium more than covers furnishing costs ($5,000-$10,000 upfront) within the first year.

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For related niche strategies, see our guides on traveling nurse housing and furnished finder strategy.