Should I accept a Corporate Lease?

Question

Hello,

I have a handful of properties and have been in the rental business for several years. However, I have never worked with a "Corporate Lease". I recently posted a listing and I have two applicants who are inquiring with a corporate lease. I'm not familiar with these. I would assume I'm signing a lease with a corporation (their lease?). The income from a corporate entity sounds appealing, however a team of corporate lawyers doesn't.

Any insight would be appreciated!

-Dean

Jessica Turchan · Answer

I'm discussing doing a corporate lease with a company right now. Any recommendations on how to vett them (I usually use Avail but only see an application for a personal application, not corporate) and anyone have an example of a corporate lease I could use or point me in the direction of where to find one?

Eliott Elias · Answer

Corporate leases are usually a lot less of a headache than your average tenant. I believe the company pays the lease

Nathan Gesner · Answer

I do it all the time and it's lucrative if you are smart about it.

For example, we have construction crews come to town for big projects, usually 6-12 months long. They bring 4-8 guys, but usually only 3-4 at a time and rarely the entire crew. Even the cheapest hotel at $100 a night is $3,000 per man.

I find them a 4-5 bedroom home. I combine market rent, average utilities, and internet. Then I increase that 50% as their monthly rate. I charge a security deposit equal to two months of rent, plus a mandatory cleaning fee based on size of property and what it will cost to clean top-to-bottom. The last group paid $3,800 a month with a deposit of $7,000 and a non-refundable cleaning fee of $1,000 without batting an eye. Rent was always paid early, the house was left in great shape, and the owner walked away with about $12,000 more than they would have earned with a traditional renter.