renting home to company which rents to insurance claim people

[Neerav Patel]

Hi fellow BP members. Once again I am turning to your wisdom.

I am a newbie and my first rental is on market for rental right now.

I received an interesting call today from a property management company who exclusively deals with insurance claim people. So that agent had a client who was looking for 6 month lease while their fire burned house gets repaired. 

I told them because of HOA requirement of 12 months we can't do that and we hung up the phone.

But voice in my head told me to talk to them again and see if they can do 12 month lease.

So I did and told him that we have to do 12-month lease and they still will be liable after they leave until we have another tenant.

His counterproposal was, that we make a lease with his company for 12 months and they will pay me regardless of a tenant being there and they can rotate clients.

My concern was I don't just want anybody in my home and he said he will provide me with appfolio's tenant screening and when we give green flag then and only then they will move tenant. And they will be making sure that each and every tenant will be responsible for damages and so forth.

I told him I  am interested but need some time to think on it meanwhile he needs to get permission from his boss.

Does anybody has any experience with this kind of a situation? Any pros or cons that make it either awesome or worst deal?

Thanks for your time and input

[Brian Adzadi]

@Neerav Patel

At this point it all boils down to what do you personally prefer? A long term tenant (2 or more years) or short term tenant (6 months to 1 year)? Once you have decided which one you want, the path to how to respond to the PM becomes perfectly clear.

However, personally for me, I feel that you have stumbled upon a niche market with which you can milk the crap out of. I would just tenant proof the property and charge whatever price the PM is willing to take and your excuse would be that "Hey I am taking on a lot of risk, so I need to be compensated well".  

If however, that is not what you want, a simple no would suffice.