So I've got the other side of my duplex listed and I'm starting to get inquiries from people looking to rent it. Mostly unqualified, unfortunately. Either asking for section 8 or telling me they're looking for a job and on disability, etc... Then the other day I received a call from the owner of a nearby granite and stone business stating he's looking for housing for 2 employees he's bringing in from out of state. Initial thoughts for me is jackpot! Tenants and an established business will be paying me the rent. So far things are checking out. It's a legit business A rating on BBB website.
Anything I should look out for or be concerned with? I will require his employees to still pass a background check.
Its called Corporate Housing - even though this might be on a smaller scale, it is a great business model. Good job drawing out exactly what they're looking for as this leads to great opportunities...
If I were you, I would meet/have a call again with them, ask them to explain the best case scenario and build something around that. + pencil your numbers from that scenario.
I have a just completed a corporate rental for a Fortune 50 company - I completely remodeled 2 units above a downtown business that will house interns for their company. Fully furnished down to spoons and I pay all utilities but built these units efficiently and on budget to maximize my margins. Total win/win situation as they are extremely happy as it is quality housing to the level of the company and assists them in attracting the right people to their company.
As far as advice - you still have to make sure to vet the individuals and/or make the company liable for any negligence. Know the identity of the individuals if it is a corp agreement and like any place, I like to keep a close eye on until it is up an running smoothly as trust is gained.
Hope this helps...good luck.
basically your asking about corporate rental.. it has it's ups and downs, you have no real control over how many people at one time will actually be in the house/unit. You can say 4 but in reality you'll never know for sure..It's a revolving door.. You would get the rent every month. Other than them screening their own employees you'd have no control other than that, and that's if they do. and they wouldn't release it to you anyway.
Check out the company and it's history before you agree to anything.. and be-careful about move in check sheet.. who's going to be responsible for upkeep.. if their employees have quick training turnover.
I know many that do could be worth looking into .. I've seen previous posts about corporate rentals.. so do a search..
I did a SFR in Silicon Valley just like this - - get the company to co-sign and it's great business.