Advice on Insurance Company Paying Tenant Rent

[Sharon Freedman]

I just had an insurance company approach me about their client wanting to rent my house.  The tenant's insurance provider would pay the rent, but tenants would be on the lease.  Haven't yet gotten the application,  but suspect the tenants couldn't afford the rent without insurance paying for it.  The insurance company will pay above market as it's less than a year lease (9 months).  On paper, it's a good deal but am worried about having tenants on lease without insurance company listed there and they won't be a guarantor.  Anyone have experience with this?  I would appreciate advice. Thanks!

[Drew Sygit]

Quote from @Sharon Freedman:

I just had an insurance company approach me about their client wanting to rent my house.  The tenant's insurance provider would pay the rent, but tenants would be on the lease.  Haven't yet gotten the application,  but suspect the tenants couldn't afford the rent without insurance paying for it.  The insurance company will pay above market as it's less than a year lease (9 months).  On paper, it's a good deal but am worried about having tenants on lease without insurance company listed there and they won't be a guarantor.  Anyone have experience with this?  I would appreciate advice. Thanks!

 These are usally great deals!

Insurance companies have to provide housing for their clients who've experienced a claim that doesn't allow them to occupy their home during repairs.

Insurance company guarantees the rent. 

They used to offer minimum 6 month leases and pay 25-50% more than 12-month lease rates.

Last few years most only want 3-month lease terms.

Good news is most of these leases end up getting extended by the insurance company!

Only real concern for a landlord is how well the tenants will take care of the property.