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Moots

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Posts: 4
Reply with quote  #1 

I have a SFH for lease, I was contacted by the owner of a business who's company will be working in the area for the next couple of years.

He is interested in leasing the house for one of his employees and their family. He made it clear that his company would be responsible for the rent.

QUESTION? How do I handle the application process...

Naturally, I assume I'll still collect information on the actual "tenants" to do a background check, (want to weed out any ax murderers). Is there still a need for a Credit Check on them???

What about the business that will be paying the rent? What information should I be sure to check? Do I have the owner fill out my "standard" application or do I need something else?

Am I making this situation more complicated than it needs to be, or does it really require a different approach?

Any and all advice appreciated.

OHlandlord

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Posts: 3,814
Reply with quote  #2 
Yes, it does require a different approach.  Will the company also be responsible for all the other obligations under the lease (damages to the property, unpaid utility bills that you are charged for, late fees, lease violations, pet fees and rent, etc.)?  Or will the company pay the rent only and the tenant will be responsible for the rest?  You need to find out what the company intends to pay for.  (You may need to re-write the lease to reflect the obligations of each party).  Call and ask the owner if he will be rsponsible for all the obligations undere the lease, or only the rent.

Then you need the owner of the company to fill out an application.  You may need to change the application some for a business.  YOu wsnt the owner's personal info.  But, you want to check with their LL (who is the company renting their building from?), how long they have been in business, who else they have rented units from for their employees (they've no doubt done this before), etc.  Screen the company, check solvency, credit, income verification (you may need a tax return to prove this), etc.  Get the same on the tenant (a complete application) so you can pursue them for damages (I doubt the company will want to pay for their damages to the unit).  Be sure to check with current and prior LLs about how these employees left the units.

I'd have both sign off on the lease so you can hold the tenant liable for whatever the company fails to pay for.  If the company will pay for everything, there's no need to do a credit check on the tenant. But if the company will pay rent only, check the tenant's credit also.  You want to be sure he will pay the bills.

You also want to be sure you have the authority to approve whatever tenants they put in the house.  Some companies will rotate employees and you may have a different set of renters at the end of the lease.

I have done this before with a company here.  We have a large plant that has changed ownership several times in the last few years (company buy-outs).  Each time a consulting firm comes in and does the changeover to the new companies name and policies.  The consulting firm rents a place for its employees and pays for the bills.  The biggest problem I had was the employees themselves (they move so frequently, they don't always take care of the yard or let you know when they will be gone for extended periods).  The company paid on time with no problems.  But the tenants would actually be gone for weeks to the home office and no one would mow or tell me when they left.  I'd find out when the neighbors would call to complain about the yard.  Put a clause in the lease that they will inform you of extended absences so you can keep an eye on the place.
Moots

Registered:
Posts: 4
Reply with quote  #3 
OHlandlord-
Thanks for the thoughtful advice....SEVERAL good points!

The Gentleman didn't call me back to confirm the appointment, maybe my phone screening letting him know I would have to throughly check credit and background scared him off. 

Thanks again...

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