Screening Corporate Placement? MTR/Furnished Finder

Screening Corporate Placement? MTR/Furnished Finder

Investor · Dayton, OH · Member since 2023 · 14 posts · 13 votes

We have a property which bounces between STR & MTR. We just got an off-season MTR request on furnished finder for a medical company that places medical providers in rural areas (which is our listing). The company seems to be a legit mid-sized business. They want to place a doctor and their spouse for a few months which seems to check out.

Since the lease will be in the name of the corporation, how do we do tenant screening for the actual occupants?  Do we ask the corporate placement folks to allow a background check for the tenant?  I'm not even sure what I'd look for...  the company is paying the bills so even if the doctor has bad credit it doesn't really matter about getting the rent check...  in theory there could be criminal background, but I doubt someone would be practicing as a MD with a long rap sheet.

Would it be sufficient to merely put a clause in the lease that the authorized occupants are Mr. & Mrs. John/Jane Doe, and any change in occupants requires mutual agreement of both parties to ensure that the business doesn't start to rotate different employees through with no option?

The company doesn't really have a "credit score" or "eviction history" so I'm thinking about asking for 1.5x or 2x monthly rent as a deposit (we normally do 1x month rent) just like I would for a tenant without established credit history.

Thanks!

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  • Dustin TuckerPro Member
    Lender · Savoy, TX · Member since 2020 · 187 posts · 78 votes
    2y

    Hello Chris,

    If I were you I would do the following:

    1. Check the Secretary of state for company good standing, and determine years in business ETC, who are the actual owners.

    2. Request 3 months of bank statements from the company to verify active income.

    3. Does the company requesting the lease work for a hospital? I would find out their affiliation to the area.

    4. I agree with you to put a clause in for the specific tenants, I wouldn't make it mutual, I would make it at the landlord's discretion, and require a background check submitted for any occupants over 18 years of age.

    5. I agree with you I would have the actual physical occupants do a background check.

    6. Who is guaranteeing the lease? Whether a lease is corporate or not, usually there is a personal guarantor to the lease, this way you have somebody to check their credit.

    7. If all the above checks out, I'm not sure if I would ask for 1.5-2x Deposit, I would think this is more of a gut feel decision at reviewing all the documentation.

    Hope this helps.

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