Renting home to folks who need temporary housing

3 Replies

Recently, I was approached by someone who works for temporary housing about renting my property. The family he's working with have experienced fire damage on their home and need a place to live. He wants a lease for a few months and then it would be month to month. The family's insurance would be paying the rent and it is higher than our listed monthly rent.

I’m a new investor and have never heard of anything like this before. This seems too good to be true…

- Is this a scam?
- Why would they be open to paying more than listing?
- How can this become a bad situation?
- What type of deposit should be required if pets are involved?

My pros/cons list :

- Rent is guaranteed

- If we start a 4 month lease right now, then it would finish by December - could be hard to find someone to rent the place when it’s cold/rainy
- Damage could occur and would require fixing after this temporary housing is complete meaning more money

If someone has done this before, please share your experience!

@Jalaj Punn

Ask them to sign a 6 month lease and go MtM after that. Doing that will get you through most of the winter. Keep higher extra rent money for holding cost through the rest of the winter if you can't rent it.

Damage will be done and cost you money regardless if it's a one-month lease or a 24-month lease. Manage the property, keep it clean, keep it safe, follow the lease and state laws and regulations if you find damages.

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