Should I rent to a Construction Company?

Question

Hello BP,

I would appreciate any insight/advice regarding this topic. I have recently closed on a SF, 3bed 2 bath in an extremely small town. A Realtor representing a construction company asked if I'd be willing to Lease the property for 18 months so the sub-contractors could stay during the week while completeing this 18 month project. The construction company will be paying all their rent. And no SSNs were provided so I can't run background checks. I'm thinking I should pass, but just wondering if anyone else has done this and what was your experience.

Thanks in advance!

Andrea

Andrea J. · Answer

@Evan Polaski Thank you for the feedback. I appreciate it! I will research the company.

Evan Polaski · Answer

Is it a well known construction company?  Are they guaranteeing the lease?  Would they require you to furnish the house?

Personally, I would not have a problem, if the construction company is reputable, financially sound, and on the hook for the lease.  You will likely have an easier time collecting on any damages from them than a random tenant.

Will Fraser · Answer

Hi @Andrea Jacob!  This is a cool scenario to get to digest with you.

In my opinion I like the sound of this with a few caveats:

• 1. I would ask the builder to put down a larger deposit in light of the transient, unnumbered, changing, or unverified nature of the tenants (if legal)
• 2. I would ask the builder to sign a specific agreement that upon termination of lease all damages occurring during the lease (if any) will be repaired by the builder.

Builders commonly use workers for their projects who are coming from outside the area.   These people are a varied as the rest of us, to be sure, but it is not uncommon to see these houses full of people who are working 12 hours a day and sleeping most of the rest.  With the right provisions with the builder ahead of time, I could see this being a real win-win.

Andrea J. · Answer

@Will Fraser thank you for the tips. I will get back in touch with the Realtor and negotiate all this. It seems so obvious, now, but didn't think about that. Thank you!