Would you rent to a company?

Question

Hey BP,

I have a perspective tenet, who is being relocated by his company to my area. The lease would be in the companies name, and the company would pay the rent. it sounds like a great idea to me, since companies tend to be more reliable than people, but i have some concerns.

My question is would you rent to him/it?

My concerns are:

If his name is not on the lease will he have any incentive to keep the house nice?

You cant run a credit check on a company?

If the company defaults, or if there is more damage than the security deposit at the end, will I be able to get anything out of the company since I'm sure they have an army of lawyers? What recourse action do I have?

Looking forward to learning from all the wisdom out there!

Nick Leamon

Nick Leamon · Answer

Thanks for the help BP!

So it seems that there are a lot of times where the company leases, or at least pays the rent on a rental, it seems to be more common with apartments than homes. Anyone have any insight into how apartments structure the lease? Do they put it in the tenet's name and just get checks paid from the company? or is it common to have the company, or a company employee other that the tenet on the lease?

Just looking for some clarity and direction,

Thanks in advance!

Sarah Grise · Answer

This is a good one! Challenging too. The company may be paying the rent, however, your lease agreement can state that any and all damages will be the responsibility of the tenant. Your lease doesn't even need to mention "the company". Who cares how the rent is being paid, as long as it's paid, all of the other filler-stuff in the lease is between you and the tenant. The company isn't the one living in the property, this person would be. I would even add something in the lease that if any damage occurs, the company will be made aware. I would take pics of the place *before* the tenant moves in and after to have on file just in case you need it. All of your concerns can be put into your lease. For example, add a clause that says "Should company default on payment, it is the responsibility of the occupying tenant to provide rent", etc. Tailor it to the situation.

Hope that helps!

Ben Braddock · Answer

I've never rented to a company when I did not personally know the owner.  For me it would make a big difference who the company was, where they were based (located) and how large the company was.  I would imagine most larger, legitimate companies wouldn't want to be on the line for a employees personal lease either.

If the rent wasn't paid in most states you would have to take the Lessee to court in the county that they are based in.  Not where the property is located.  I'm in NC so if I had a Lessee who was in a different county or out of state I would have to take them to court in their county/state not the county where the rental property is located.

I would personally never do this.  If the company wants to pay the bill that's ok but the tenant is the one that I would want to hold personally responsible to any damages, neglect or non-payment.