I Received a Message From Corporate Housing for My Rental Unit

Columbus, Ohio
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I Received a Message From Corporate Housing for My Rental Unit

Thomas O'Donnell
Rental Property Investor · Columbus, OH · Member since 2021 · 231 posts · 188 votes

Hello all,

I recently received a message from a corporate housing company for my vacant rental unit. The message reads as followed

"Hi, My name is Zach, and I run a corporate housing company called Zillycon Capital. We have been in business for 5 years and are becoming the premier name in corporate leasing. We are seeking high quality vacant units to rent to our corporate travelers (stays of 90 days or less). If your unit qualifies, we can sign 1-4 year leases for your property or as many units as you have available. With Zillycon, you get the highest quality tenants, free property management, which includes weekly cleaning/minor maintenance, and a host of security features. I'd love to continue this conversation and see if we are a good fit. Looking forward to hearing back. Zach https://zillyconrentals.com/ho... zillyconrentals.com Home | Zillycon Rentals"

However, I am not sure if this is legit or how it truly works. It seems like its basically a medium term rental arbitrage situation. How should I go about this? I'm currently having trouble getting my unit rented, but it also is completely unfurnished making it hard to do medium-term. Should I entertain this idea at all? If so, why? If not, why not? Thanks! (P.S. I live about a mile from Children's Hospital)

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Dale K Poyser
Rental Property Investor · Laguna Niguel, CA · Member since 2019 · 175 posts · 116 votes
3y

I like the part where they say "if your unit qualifies" which makes me think this is a mass email sent out to a list. There is a chance once you actually respond they will vet your property and decide not to proceed. 

The 1-4 yr lease sounds like an arbitrage situation for sure. Especially if they made it clear they plan to do MTR. 


You could do it yourself but furnishing can cost money which you might not want to spend.  u could shop for deals but ultimately that's money out of  pocket.

They seem pretty clear in their intentions. Usually they would be responsible for furnishing the unit after they sign the LTR lease. It doesn't hurt to reply and let them pitch to you. if numbers work then go for it. If they don't work then you're back in the position you're in now.

Also, I agree with the previous comment you should review and understand the contract.

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  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    3y

    They sound like they are doing Arbitrage, where they lease it from you and then try to make money renting it out for more than they pay you.

    Nothing wrong with this arrangement, but things to keep in mind:

    1) You should get a bit more than LTR market rent from them

    2) Review their contract/lease carefully to FULLY understand your rights and more importantly, how you can terminate if something goes wrong

    3) What happens if they go out of business?

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  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    3y
    Quote from @Thomas O'Donnell:

    I agree with Drew. They want to rent your property, then use it as a vacation rental and make money. If your property is capable of making money as a short-term rental, do it yourself.

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  • Dale K Poyser
    Rental Property Investor · Laguna Niguel, CA · Member since 2019 · 175 posts · 116 votes
    3y

    I like the part where they say "if your unit qualifies" which makes me think this is a mass email sent out to a list. There is a chance once you actually respond they will vet your property and decide not to proceed. 

    The 1-4 yr lease sounds like an arbitrage situation for sure. Especially if they made it clear they plan to do MTR. 


    You could do it yourself but furnishing can cost money which you might not want to spend.  u could shop for deals but ultimately that's money out of  pocket.

    They seem pretty clear in their intentions. Usually they would be responsible for furnishing the unit after they sign the LTR lease. It doesn't hurt to reply and let them pitch to you. if numbers work then go for it. If they don't work then you're back in the position you're in now.

    Also, I agree with the previous comment you should review and understand the contract.

    3Reply
  • Eliott Elias
    Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
    3y

    Corporate housing is usually safer than airbnb or STR. It's usually a family or a group of co workers who are temporarily relocating for work. I would address the risk of vacancy, if the unit is vacant will rent still be paid? I would also charge them a higher rent.

    3Reply
  • Thomas O'Donnell
    OP
    Rental Property Investor · Columbus, OH · Member since 2021 · 231 posts · 188 votes
    3y

    I am definitely interested in getting more information from them as it doesn’t hurt. What kinds of questions should I be looking to ask them? 

    0Reply
  • Alicia Senn
    Flipper/Rehabber · Cincinnati and Norther Kentucky · Member since 2018 · 1 post · 0 votes
    3y
    Quote from @Thomas O'Donnell:

    I am definitely interested in getting more information from them as it doesn’t hurt. What kinds of questions should I be looking to ask them? 

    Did you talk with them? I'm curious, we received a message from them earlier today. I found this post while researching them some. 
    0Reply
  • Thomas O'Donnell
    OP
    Rental Property Investor · Columbus, OH · Member since 2021 · 231 posts · 188 votes
    3y
    Quote from @Alicia Senn:
    Quote from @Thomas O'Donnell:

    I am definitely interested in getting more information from them as it doesn’t hurt. What kinds of questions should I be looking to ask them? 

    Did you talk with them? I'm curious, we received a message from them earlier today. I found this post while researching them some. 

     I did respond to their initial message through Avail, which is what I use to manage my property. However they never responded back. 

    0Reply
  • Matthew Masoud
    Investor · Orange County, CA · Member since 2014 · 363 posts · 408 votes
    3y

    Pretty sure they are just gonna run AirBnb or medium-term rental on your property and pocket the difference. You'd probably make more doing it yourself with a med/short-term property management company. 

    0Reply
  • Dale K Poyser
    Rental Property Investor · Laguna Niguel, CA · Member since 2019 · 175 posts · 116 votes
    3y
    Quote from @Thomas O'Donnell:

    I am definitely interested in getting more information from them as it doesn’t hurt. What kinds of questions should I be looking to ask them? 


     Tell them you are interested and ask them to send you the contract documents so that you and your lawyer can review them. If they are legit then they will have no problems doing that. If you are signing a long term contract, they are responsible for the rent whether the unit is vacant or not. Also keep in mind that they will be responsible for utilities, cleaning, maintenance, prop management fees, etc etc. If you expect them to pay a premium on the LTR rents then expect them to look elsewhere.

    1Reply
  • Thomas Abbott
    Real Estate Investor · Fort Worth, TX · Member since 2015 · 23 posts · 11 votes
    3y

    I received the same message on Zillow.  Out of curiosity, I messaged back and they returned the same intro message.  Replied again to point that out and they again replied again with the intro.  Looks to be a scam.  

    1Reply
  • Joseph Lalia
    Investor · Palm Beach · Member since 2018 · 35 posts · 7 votes
    3y

    Not ready to call it a scam, but they appear to strictly be middlemen, connecting owners with other "investors" who will sign long-term leases to arb with MTR/STRs.

    1Reply
  • Account Closed
    Member since 2023 · 1 post · 0 votes
    2y
    Quote from @Thomas O'Donnell:

    Hello all,

    I recently received a message from a corporate housing company for my vacant rental unit. The message reads as followed

    "Hi, My name is Zach, and I run a corporate housing company called Zillycon Capital. We have been in business for 5 years and are becoming the premier name in corporate leasing. We are seeking high quality vacant units to rent to our corporate travelers (stays of 90 days or less). If your unit qualifies, we can sign 1-4 year leases for your property or as many units as you have available. With Zillycon, you get the highest quality tenants, free property management, which includes weekly cleaning/minor maintenance, and a host of security features. I'd love to continue this conversation and see if we are a good fit. Looking forward to hearing back. Zach https://zillyconrentals.com/ho... zillyconrentals.com Home | Zillycon Rentals"

    However, I am not sure if this is legit or how it truly works. It seems like its basically a medium term rental arbitrage situation. How should I go about this? I'm currently having trouble getting my unit rented, but it also is completely unfurnished making it hard to do medium-term. Should I entertain this idea at all? If so, why? If not, why not? Thanks! (P.S. I live about a mile from Children's Hospital)

     We received the same message. I think they are looking for airbnb rentals. We actually do both. We have airbnb rentals and we rent units. If you are so close to the hospital, I would suggest your try airbnb yourself.  We furnished our units for under $2000 initially.  Just threw it on a card and it was listed in no time.  We shopped at local discount stores where you can get furniture for nice but not expensive. There is one store called Fort Pitt and Johns Furniture in Chicago. They both had tons of bargains.  I think  I actually LOVE decorating on a dime.  LOL.  LOL.  Oh.. the winter months are REALLY SLOW in Chicago so if you decide to try short term rentals, just know that November and December and SUPER SLOW. I hope this helps.  If you want some more suggestions, i would be happy to chat. 

    0Reply
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