Rent to a relocation company?

Question

Hi, I listed a new property purchased and got contacted by a relocation company about renting for 3-4 months and then continue it on a monthly basis. It’s a pretty big relocation company who works with insurance company to provide temp housing to families recently had flood/fire and needs time to repair their house.

The rent is a little bit higher than normal and payment won’t be a problem as the company will pay. After talking to the family, they look to be quite decent. I am looking for tenants now so if I donot have other tenants options right now, I would not lose anything by continuing to find tenants next week versus four months later(after they move out). I’ll get cleaning fee, etc anyway. So I am tempted to move forward.

Any suggestions?

Thanks

Sam

Adam Martin · Answer

It is up to you but if I were to rent to them I would demand a premium of at least 25% over typical rent and also insist on running a background check on the tenant so I know the type of person I would be bringing into the neighborhood.  Where I live though it is getting into a tougher time of year to find tenants and rates are usually up in the spring so this may be a good deal for you.  The big question I would have however is who is responsible for damage and making sure the unit is left clean.  If it is on the company this may be a good niche for you to get extra rent at a time where unemployment and eviction rules are a bit iffy at best.

Ryan B. · Answer

@Sam Li I occasionally rent to tenants whose rent is being paid by insurance due to a fire or the like.  They usually want to rent for less than a year.  They also pay rents that are about 130% of my normal ask.  So for me it often works out.

Bjorn Ahlblad · Answer

@Sam Li I would go online and read reviews about whatever that company is. Some are good others not so much. Lots of horror stories out there, LL not getting paid etc. Check them out before you go ahead.

Kemi Okafor · Answer

Hi Sam Li, How did your negotiation go with them? Were they flexible?

Sam Li · Answer

Thanks everyone for the advice. It looks a trustable company but I did charge too less probably (only 10% surcharge). I'll try to re-negotiate.

Rent to a relocation company?

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