New MTR tenant and help with setting up lease and move in.

Houston, Texas
General Landlording & Rental Properties
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New MTR tenant and help with setting up lease and move in.

Nkechi Jarvis
Member since 2022 · 31 posts · 6 votes

Hello BP Community!

I am new to landlording here, I just received my first request from a traveling nurse for housing  through Furnished Finders- the request is for a fully furnished house, utilities included for month to month lease up to 3 months. I hope to set up the lease through Keycheck - I signed up with Keycheck through Furnished Finders, for background check, signing lease agreement (for additional cost through keycheck), and rent collection by stripe on Keycheck platform.  

How do I include an addendum regarding the allowable amount for utility cost after which the tenant has to pay the balance? I would like the tenant to get renter's insurance - is it possible for MTR to obtain renter's insurance? If so, any suggestions of insurance companies that issue renter's insurance for MTR? What should I do if the tenant declines to obtain the renter's insurance? What additional Landlord insurance can I get to cover my LLC as the home owner's insurance will not cover rental? The lease will be between my LLC and the tenant, even though I own the property under my personal name.

Can I contact the nurse's staffing agency or employer for a reference? Some people say they skip this as they feel the nurse has already passed all background checks before approval by their employer.

How do I deal with inventory/furniture in the property as I have heard how STR/MTR renters walk off with items used to furnish the house when they leave at the end of their lease?

I plan to ask for one month rent and one month refundable deposit, even though when I checked on Furnished Finders to see how other landlords advertised their rentals, the amount of most refundable deposits appear to be less than the monthly rent.  Is this the case for month to month lease? What if the renter requests to terminate their lease before the end of lease term for any reason, should this be included in the lease?

What else do I need to cover on the lease agreement to protect myself and my property? Any other useful tips are welcome!

Thanks in advance for your suggestions!

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  • Ricardo R.Pro Member
    Property Manager · Michigan Ctr, MI · Member since 2016 · 661 posts · 581 votes
    3y

    @Nkechi Jarvis I'll try to address as many of your questions as possible here goes: 

    - Addendum/Amendment regarding utilities: As you mentioned, yes you can add an addendum/amendment to the Lease regarding utilities - The document would have all the utilities i.e. 'water, gas, electricity, waste, etc.' and next to each utility item you would allocate if the Tenant is paying or the Owner (you) are paying the utility, if it is you then next to date you can put a 'maximum' dollar amount you would pay for that utility. For example: Owner will pay for water up $100/mo. after which Tenant is responsible for any additional cost


    - Renter's Insurance: Yes it is possible for the Tenant to get MTR renter's insurance through most carriers, require proof of renter's insurance prior to move-in from the Tenant. Renter's insurance is cheap ($100,000 coverage for about $8-$15/mo.) If they decline then it is up to you, but you do decide to move forward you should have them sign another document that states, that you have requested they attain renter's insurance and that they have declined and the are aware that your insurance does not cover their personal belongings or cover them, nor will you or your insurance be cover any cost associated with temporary housing or relocation should your unit become 'uninhabitable' -- Personally, I would just pass on a Tenant that declines to follow your procedures. 

    - You should be able to find carriers that do cover MTRs so it would worth looking around. I would focus on the liability side of insurance and you may even get supplemental umbrella insurance to safeguard your liability. 

    - Yes, you should do your own background verification of the Tenant, do no rely on ANY background verification, credit reports, etc. provided to you by the Tenant directly or a background verification conducted by another company with no connection to you - different companies focus on different things when conducting verifications - you will be focused on qualifying this person for housing not a new job, which is completely different. 

    - For furniture/other items: Make an inventory list and have the Tenant sign it before moving in.

    - Yes, you should include all these items in the Lease; You should not accept anything less than a one (1) month deposit, it is your security. For early terminations, you can add that in the lease as well, figure out an 'early termination' fee that makes sense and include it in the lease. 

    - Other items: 1) On move-in day do a video walk-through to show the condition of the unit and the inventory (because this is an MTR with inventory this is even more important) and  save it for the future in case of disputes; 2) There are so many things included in a lease and they are all different, so my advice is 'don't assume' it is 'understood' if you are thinking of it or think things should be run a certain way... include it in the lease. For example: Regarding maintenance don't assume the Tenant likely won't call you after 8PM.... include it in the lease and make sure the items are enforceable in escalation instead of just going straight to evictions. For example: Many will put 'No smoking in the unit' in the lease.... Tenant smokes in the unit, you tell them to stop, they don't ... now what?... if the lease doesn't provide a remedy for escalation, then your only 2 options are to, just allow the Tenant to continue smoking in the unit or to evict them, which is costly..... A more suitable enforceable escalation would be 'No smoking in the unit, $200 fee + cost of clean up to Tenant and Landlord retains the option to evict' ... this give you options instead of only having eviction as an option to remedy situations.... your pocket book will thank you, the courts will thank you and the Tenant won't like it but will eventually thank you. 

    I really hopes this helps, I have sent you an email and I hope you did find value in this information.

    [email protected]810-844-1104
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  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    3y
    Quote from @Nkechi Jarvis:

    Part of your confusion is caused by this new "MTR" craze going around. It's a made-up name. Anything rented longer than 30 days is a long-term rental. Putting furniture in and including utilities doesn't change that.

    Use a long-term lease. Add a clause that says, "Rent rate includes utilities up to $XXX. Any use exceeding this amount is the responsibility of the Tenant. Landlord will provide Tenant with the amount due and a copy of the utility invoice as evidence, and Tenant shall have ten days to make payment."

    Inventory the furniture with pictures. If Tenant walks off with something, you charge them for it.

    The deposit can be whatever you want, but most common is equal to a month of rent/utilities.

    You typically can't get any more information on the traveling nurse. I personally recommend adding a clause that allows for monthly inspections because my personal experience is that a lot of traveling nurses are problematic. I've seen traveling nurses addicted to prescription meds and they travel so they are less likely to get caught. Some of them are mentally ill. In my experience with dozens of them, about half were terrible renters.

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  • Nkechi Jarvis
    OP
    Member since 2022 · 31 posts · 6 votes
    3y
    Quote from @Nathan Gesner:
    Quote from @Nkechi Jarvis:

    Part of your confusion is caused by this new "MTR" craze going around. It's a made-up name. Anything rented longer than 30 days is a long-term rental. Putting furniture in and including utilities doesn't change that.

    Use a long-term lease. Add a clause that says, "Rent rate includes utilities up to $XXX. Any use exceeding this amount is the responsibility of the Tenant. Landlord will provide Tenant with the amount due and a copy of the utility invoice as evidence, and Tenant shall have ten days to make payment."

    Inventory the furniture with pictures. If Tenant walks off with something, you charge them for it.

    The deposit can be whatever you want, but most common is equal to a month of rent/utilities.

    You typically can't get any more information on the traveling nurse. I personally recommend adding a clause that allows for monthly inspections because my personal experience is that a lot of traveling nurses are problematic. I've seen traveling nurses addicted to prescription meds and they travel so they are less likely to get caught. Some of them are mentally ill. In my experience with dozens of them, about half were terrible renters.


     Thank you so much for your response! Very enlightening.

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