So quick background story........
A Business comes into town and buys another location to add to their business. This new location is in my small town USA. When they buy a new location they also rent a house in town close by for 2-4 workers to live in. So the company is paying the rent and the utilities. SO is this called a Corprate rental? Also would you rent to them? The unit is the upstairs of a duplex. This is a 2 bedroom with rent at $575/ month plus utilities. The building is a great partial remodeled close to a small downtown area.
Couple concerns I have:
Who will live there. It could change from day to day. But with this group I don't think the change will happen all the time. Maybe when they move a group of works from on location to another. But how do I track it? How do I do my background checks?
One reference says he has rented to this group for 4 years and 12 checks are ready at a local gas station on January 1st and you just cash one each month! Maintenance calls are few and neighbors have never complained!
This is just not a normal for my management style. So I think we are just nervous? Any advice or does anyone else do this style of renting?
I'd definitely do it. Set it up where you are renting to the corporation and they are subleasing to the people living there. (charge them a bit more for subleasing)
That way you can charge thw corp for damages, rent owed and not have to chase down anonymous rotating renters.
Are they wanting it furnished? That's not unusual for corporate rentals.
The mindset of most corporations is to buy convenience and be fine paying dearly for it.
The word is "corporate". That said, we have rented to businesses for the benefit of their employees/volunteers and found them to be very stable and responsible partners. You can ask for a higher security deposit to cover your risk if you wish. Treat the tenants the same as you would for any other. Do regular inspections and charge for damages as they occur. Make sure the business you are dealing with is legit. No reason you can't be creative and flexible in the way you negotiate and how you contract. This was in an 8-plex and the other tenants didn't even know the people living in the unit were "authorized occupants" and a business was the tenant on record and paying the rent. We didn't need to change our management style.
Marcia Maynard, Fischer Properties | Podcast Guest on Show #83
Once you start an entirely new world of opportunities open up. For example, I charge $40 a month for a bicycle that cost $130 fixed up. I charge $150 for turnover cleaning which cost me $95. Get the idea?
Now there are a bunch of tips and tricks to getting people to share space without conflict. One tip is to use digital locks so each resident can have a sense of privacy.
Best to you. Everything you really want is outside your comfort zone.
Thanks spelling correction. Corporate is the correct way! lol It is the little things in life right? But thanks mostly for the replys. They have not asked about furnishing it. I will have to ask about that. The term 'authorized occupants' is a good one. I will have to change up the way my lease states that for this situation. I also might add a fee to allow subletting of the unit. I believe you are all correct this might be the start of a really good 0% vacancy rate for my duplex!!!!! I will have to report back to let you all know what happens.
Agree this is a great opportunity, My mom rents a property to a corporation and its been great. It is often empty, they take great care of it, and the rent is regular. Of course, you'd want to put in fail safes to protect yourself in case they are hard on the unit or extended absences could cause any issues.
I'm scheduled to sign lease tomorrow? I'll post back and give a report on how it is working out and if they keep to their occupant numbers. That is my worry. Before I know it 6 guys will be living in my unit. I'm sure I'm over tinking it!
So far all is well! Lease signing went fine, move in check sheet and deposits!! Thanks to all that guided me to do it. I think it will be a good long relationship.
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