renting to someone funded by a third party.
I'm pretty sure this has been addressed before somewhere but I had no success searching the site.
I have a 3/2 ranch SFR we're refurbing. The neighbor kid came over with his fiancee and they are looking for a home to rent when they get married in a few months. He lives adjacent to the property with his parent(s) and is a college junior/senior. They are interested in renting but have no income stream at this time. She indicated her family would give an allowance to fund their housing.
Have any of you encountered this and how did you handle it? I told them, the lease would actually need to be signed by the sponsoring family and I would need to perform a credit check on the daddy and do criminal/background checks on each of them (the ones living in the property)
It would be an unusual situation and if this is a dumb idea, say so. The rent would be $860 plus they would have to cover all their own utilities.
Thanks.
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I'd propose a variation what Lloyd suggested:
Lease to the parents and let them sub-lease to the kids. That way, the parents are responsible for the rent. That could even take the form of the Personal Guarantor Rental Agreement he mentioned.
Not sure how they might handle the utilities, but make sure the lease to parents includes verbiage about damage due to lack of heat (frozen pipes) or electrical power (flooding due to sump pump not operating).
My $0.02...