Share post:
The mid-term corporate market offers London landlords a flexible and profitable alternative to short-term and long-term letting. It targets business travellers, relocators, consultants, and digital nomads looking for stays of three to six months, helping owners improve occupancy and rental income while navigating regulatory risks.
Key Takeaways:
- The mid-term corporate market targets professionals seeking stays of 3 to 6 months.
- Corporate mid-term stays of more than 90 consecutive nights fall outside London’s strict 90-day short-let restriction while avoiding tenancy challenges of long-lets, although landlords should always check local planning requirements for specific compliance details.
- Corporate clients often pay premium rates for fully furnished turnkey properties.
- Location matters to attract the right corporate tenants. Kensington, Chelsea, Canary Wharf, King’s Cross, and Shoreditch are only a few of the areas with strong corporate demand.
- Partnering with professionals will benefit mid-let landlords, as most corporate clients prefer to partner with property management companies rather than individuals.
The mid-term corporate market is the sweet spot between short-term and long-term rentals, where fully furnished properties are rented to business travellers, relocating executives, or corporate entities seeking stays of 3 to 9 months.
Why Are London Landlords Looking For Letting Alternatives?
The rental market is becoming more complex for London landlords, with regulations restricting profitability and flexibility in short- and long-term letting. The current situation is pushing landlords to look for alternative letting strategies, specifically, mid-term rentals.
At the moment, short-term rentals still generate higher nightly rates, especially during the peak summer season. However, with London imposing a strict 90-day rule, entire-home rentals are limited to just 90 nights per year. This leaves the property empty for the rest of the year, resulting in the landlord losing money.
Long-term rentals offer stable profits and occupancy, but recent regulatory changes under the Renters’ Rights Act (RRA) have restricted landlords’ flexibility and heightened concerns about possession timelines and operational risks.
These conditions have created a growing interest in the mid-term corporate market. It’s a segment that sits right between short-lets (stays of 90 days or less) and long-lets (6 to 12+ months). This makes it an effective strategy, as it allows them to keep earning despite the 90-day restriction without facing the RRA’s rigid tenancy rules, provided it does not inadvertently grant standard tenancy protections under the Renters’ Rights Act. For instance, if the individual’s name is on the agreement rather than the company’s, it might be treated as a standard tenancy that can’t be terminated by a ‘no-fault eviction’.
Among the mid-term corporate guest profiles are:
- International consultants
- Corporate relocators
- Digital nomads
- Project-based contractors
- Film and television crews
- Healthcare professionals
- Senior executives on temporary assignments
Did you know…
Condor Ferries’ UK Tourism Statistics revealed that business trips are among the most popular reasons for visiting London, alongside holidays and visiting family. Business trips, in particular, contributed to the arrival of 2.4 million visitors.
What Makes Mid-Term Corporate Letting Financially Attractive?
One of the strongest arguments for corporate midlets is financial. At City Relay, we often suggest switching to mid-term letting during the slower months after the summer season to ensure short-lets will continue to earn rental income. Corporate letting, in particular, holds significant financial benefits.
Premium pricing
Companies relocating employees prioritise convenience, flexibility, location, and professional management. They also prefer fully furnished accommodations so their employees can settle in quickly.
All this commands a higher rate compared to unfurnished long-term rentals. Across City Relay’s portfolio, comparable mid-term corporate lets are typically priced around 40% above equivalent long-term lets, depending on location, seasonality and specification. For instance, a 1-bedroom, 1-bath, fully furnished Marylebone City Apartment is priced at £2,500 a month as a long-let. But as a mid-let, the rate increases to £3,500 per month.
More stable income
Another benefit is the stable income from mid-term rentals. At City Relay, our mid-term rentals last between 3-6 months. That means securing a corporate mid-let stay locks in at least 3 months’ worth of rental revenue.
In many corporate bookings, payment is made by the employer, relocation company, or corporate accommodation provider rather than the individual guest. This gives you greater assurance that the rental fees will be paid. It reduces concerns about rent arrears, late payments, affordability, and costly possession proceedings.
Reduced wear and tear
Corporate guests typically use accommodations differently than permanent residents or tourists. They are in London to work. That means most of them spend longer hours working, travelling, or attending meetings. Some even return to their homes on weekends.
This means your property will experience less usage, reduced furniture wear, lower maintenance requirements, and longer replacement cycles. The lower wear and tear can boost your property’s long-term profitability.
What London Areas Are Best For Corporate Midlets?
Admittedly, not all areas of London are ideal for a corporate mid-let stay. Your property should be either within the business and financial hub or in a major employment centre.
The financial hub
The key areas in London include Canary Wharf (as the investment banking hub) and the Square Mile (The City of London, Bank, and Liverpool Street). These areas attract banking professionals, investment managers, and legal consultants. Some of them may come to London for the Q1/Q2 auditing cycles or mergers and acquisitions. Staying within walking distance of their work is ideal, especially if they need to work intensively for 3 to 6 months.
The tech and creative locations
International technology firms usually bring talent to London, particularly in the east, where the Silicon Roundabout (Shoreditch, Clerkenwell, and Old Street) is located and where King’s Cross anchors Google and Meta’s massive corporate campuses.
This tech and creative belt attracts developers, startup founders, software engineers, and tech consultants.
The premium residential districts
Relocating executives who bring their families prioritise lifestyle, safety, and convenience. They prefer to live in premium residential areas like Kensington, Marylebone, and Notting Hill. These areas have a distinct ‘village’ feel, world-class dining, and proximity to elite international schools. It’s also close to Hyde Park and Regent’s Park.
How To Transition Into the Mid-Term Corporate Market?
If your property already operates as a short-let and is located in the areas mentioned above, you have a huge opportunity to boost profitability by opening your doors to corporate mid-lets.
The transition is often easier than you think.
- Upgrade your property’s standards. This means executive standards that allow a professional living environment. Corporate guests want a property they can move in immediately. You should also have high-speed fibre broadband, quality furnishings, a dedicated workspace, a fully equipped kitchen, ample storage, and hotel-quality bedding.
- Offer an all-inclusive package. Bundle rent, council tax, broadband, electricity, gas, and water. This will create a straightforward monthly cost for corporate guests and relocation agencies.
- Market in corporate channels. This includes relocation agencies, corporate housing providers, or property management companies like City Relay. We work directly with professional contractors, business travellers, and corporate relocation partners.
Is Mid-Term Corporate Letting Right For Your Property?
The mid-term corporate market is not always the right strategy for all rental properties. It could be ideal for you if your property:
- Is located near business districts, financial hubs, tech areas, or premium residential neighbourhoods
- Is fully furnished
- Can accommodate stays that last for three to six months
- Has a strong broadband connection
- Appeals to professionals more than tourists
For many London landlords, corporate mid-lets solve a growing challenge that allows them to generate high rental income while remaining flexible and compliant with local regulations.
If you’re looking for a new strategy, City Relay can help you understand your property’s potential within the corporate market. We use smart technology and data-driven strategies to set profitable rental rates. Let’s talk about your options.
FAQs
What is the mid-term corporate market?
This mid-term corporate market demands furnished accommodations for professionals staying three to six months. These include consultants, relocators, executives, contractors, and even digital nomads. Unlike tourists, these guests require accommodations that support their work and daily living.
How does corporate mid-lets bypass London’s 90-day rule?
London’s 90-day rule restriction applies to temporary sleeping accommodation in Greater London under the Deregulation Act. Corporate mid-lets have a minimum stay of 3 months, which makes it fall outside the scope of the restriction. This can be used as part of a flexible letting strategy to maximise earnings and occupancy potential in London while staying compliant with local rules.
Are corporate tenants better than traditional ones?
Corporate tenants are not necessarily better, but they do come with benefits. Many bookings are supported by employers, corporate accommodation providers, or relocation agencies. This reduces concerns around affordability and rent collection. Since corporate tenants treat mid-lets as their temporary residence, they give landlords greater flexibility and lower operational risk.
Corporate tenants do present a different risk profile since mid-lets might accidentally grant standard tenancy protections under the Renters’ Rights Act. For instance, if the individual’s name is on the agreement rather than the company’s, it might be treated as a standard tenancy that can’t be terminated by a ‘no-fault eviction’.
How do landlords find corporate guests in London?
Most corporate bookings go through specialist channels rather than mainstream portals like Airbnb. Relocation agencies, corporate housing providers, and multinational companies usually partner with property management companies that manage multi-property portfolios, such as City Relay, rather than look for individual landlords.
By partnering with City Relay, you can secure consistent corporate bookings while having experts transform your property into a peak-earning short-let during the tourist season.
