Insurance company placement for medium term rentals
I have received messages in the past from insurance companies trying to place their clients on medium-term rentals and a colleague has recently taken on such a tenant.
I wonder if insurance companies have departments that arrange rentals for their clients who may need to be out of their homes for fire or other reasons. Where can one find this category of tenants?
@Kyle Mccaw might be able to answer this. He/his network have rented for short to medium term to people being housed while their fire-damaged properties are restored.
Insurance Agent Missouri (#3002404805), Alabama (#3002405934), Texas (#2415793), Georgia (#3595431), and New Mexico (#19197454)
These mid-term rental make GREAT money. I had one this year that an insurance company paid me $30,000 for 4 months. The house was all bills paid and furnished by me. Unfurnished, it would typically rent for ~$1,200/month.
yes many insurance companies have departments that source housing. But most often they contract with a 3rd party. They are difficult to find and contact. Can you imagine the number calls they would get? We keep a list of these agents so we can reach out to them to stay front of mind.
@Cameron Moore thanks for remembering me on this.
Quote from @Kyle Mccaw:
These mid-term rental make GREAT money. I had one this year that an insurance company paid me $30,000 for 4 months. The house was all bills paid and furnished by me. Unfurnished, it would typically rent for ~$1,200/month.
yes many insurance companies have departments that source housing. But most often they contract with a 3rd party. They are difficult to find and contact. Can you imagine the number calls they would get? We keep a list of these agents so we can reach out to them to stay front of mind.
How is the rent determined in cases like these? Is there a formula for how much you charge or do they give you a fixed rate?
#1 Medium-Term Rentals Contributor
- Property Manager
- Reston, VA
List on ALE Solutions which is a site that houses displaced families. When you list you include the address, BR/BA count, etc and a housing specialist will reach out to you when a family needs housing in your area. The issue is that these requests come in last minute and the guests often need housing ASAP (within the week) so listing on those sites requires a lot of calendar management.
Quote from @Jamie Banks:
List on ALE Solutions which is a site that houses displaced families. When you list you include the address, BR/BA count, etc and a housing specialist will reach out to you when a family needs housing in your area. The issue is that these requests come in last minute and the guests often need housing ASAP (within the week) so listing on those sites requires a lot of calendar management.
I have used ALE solutions in the past and they were great. I had a ltr and they paid to furnish it and rented it for 750 over market for 6 months. I was hoping I found a nice niche with them and listed again when I had the next vacancy but they didn't need anything at the time. Now I just focus on LTR because I don't want to deal with the vacancy but if they reached out again and it was a slow time of year I may be tempted. I doubt I would do it in the summer though when rates are up but off season is a possibility especially around the holidays. I really thought I found a gold mine here and was hoping to just turn them all into MTR for them but there is just not enough consistent demand and I'm not willing to let it sit vacant hoping they reach out.
#1 Medium-Term Rentals Contributor
- Property Manager
- Reston, VA
@Adam Martin Listing on ALE Solutions is a great option, but as you mentioned, it's not enough. Once I'm connecting with a housing specialist at ALE Solutions in my city I send consistent follow ups to see if housing is needed. Most of the time the answer is no but I like to be on the front of their minds when a housing need arises. Furnished Finder and Zillow are also great sources for finding insurance related housing inquiries.
#1 Medium-Term Rentals Contributor
- Investor
- Cottonwood, CA
Check out Rachel Gainsbrugh on social media. She has conquered the insurance placement niche and offers free and paid coaching and courses on this market. Given California's wildfire risk, insurance placements can be a smart strategy to focus on.
Quote from @Eliu Rosario:
Quote from @Kyle Mccaw:
These mid-term rental make GREAT money. I had one this year that an insurance company paid me $30,000 for 4 months. The house was all bills paid and furnished by me. Unfurnished, it would typically rent for ~$1,200/month.
yes many insurance companies have departments that source housing. But most often they contract with a 3rd party. They are difficult to find and contact. Can you imagine the number calls they would get? We keep a list of these agents so we can reach out to them to stay front of mind.
How is the rent determined in cases like these? Is there a formula for how much you charge or do they give you a fixed rate?
It's your property. You set the terms. You can negotiate with them if you want.