Hi. I recently acquired a townhome in Asheville, NC that I'm operating as a furnished mid-term rental. I have been contacted by multiple corporate housing companies that would like to secure long-term leases and then operate it themselves. Having a long-term lease at mid-term rates and not having to worry about keeping it booked, cleaned, or maintained sounds good. However, I'm a bit hesitant to allow this, as I won't have control over who is occupying the property or how well it is being maintained.
Does anyone have experience with these arrangements? Am I right to be hesitant?
Hi. I recently acquired a townhome in Asheville, NC that I'm operating as a furnished mid-term rental. I have been contacted by multiple corporate housing companies that would like to secure long-term leases and then operate it themselves. Having a long-term lease at mid-term rates and not having to worry about keeping it booked, cleaned, or maintained sounds good. However, I'm a bit hesitant to allow this, as I won't have control over who is occupying the property or how well it is being maintained.
Does anyone have experience with these arrangements? Am I right to be hesitant?
I would appreciate anyone's perspective on this.
Thanks,
~ Troy
It's completely understandable to feel hesitant about handing over control of your property to a corporate housing company. While there are potential benefits such as consistent income and reduced management responsibilities, it's important to carefully vet any potential partners and ensure that your property will be well-maintained and treated with respect. Consider setting clear guidelines and expectations in any lease agreements to protect your investment. Ultimately, trust your instincts and do what feels right for you and your property.
Are these companies asking to do rental arbitrage with your property? Usually RA operators are paying long term rental rates to the owner and then subletting as a STR or MTR. If they are offering you MTR rates, that's pretty amazing and I don't know how they would make a profit. Either way, make sure to heavily vet these operators. Ask to speak with their other landlords. You want to see that they have a great track record.
@Troy Sabin What kind of companies? Is this a health care company that will provide housing to their workers or a company in the business of re=renting space that they rent from you. The former I would be ok with but the later no. The reason being you have no control over the renters. Now if you have a health care company paying the credit part is no longer an issue and they do background checks on all employees. And by long term do you mean longer than a year or only a year?
I used corporate housing for one of mine and it was a disaster. The tenant they put in wrecked the house, they ended up taking his rent and not paying me. I took them to court for over $20,000 in damages and unpaid rent.
I feel that one of the ways I am able to optimize my SFH rentals is by being really good at selecting tenants, I will not ever do this again.