Renting a revenue to a Business to house executives? Advice

[spike98]

I am currently interviewing people to rent my second rental place and i have some questions about renting to a company.

The company in question is doing a large scale project in medicine hat and they are looking for an upper scale house to rent for the executives in charge of the project. They are willing to sign an 18 month lease as the project will last 18 months minimum.

This seems like an attractive option to me as generally project managers/project engineers ect will be pretty reliable, handy, and tend not to party like teenagers. As the rent will be paid from a company that has secured a multi million dollar contract with a government project i think the reliability of the rent coming in should be ideal as well.

What i am wondering is how do i do the lease for the situation? Would there be any risks to this situation short of the company becoming insolvent?

Anyone care to talk me out of it?

[Darkane]

Do it. At least 18 months will be more like 24-30 months.

Executives - just hookers and blow. Not pot and teenage girls.

[EK69]

They won't party like teenagers, but they will party like executives of a company that just signed a multimillion dollar deal. I would do it. No clue on the risks and paperwork involved though.

[BrknFngrs]

Seems like a landlord's dream :thumbsup:

[A790]

Originally posted by EK69
They won't party like teenagers, but they will party like executives of a company that just signed a multimillion dollar deal. I would do it. No clue on the risks and paperwork involved though.
When I owned Neatfreak I remember going to this beautiful house in the NW just off of crowchild to clean the carpets. It was rented to some high-up engineer at an oil company.

That engineer, along with his family, just wrecked that place. They never took their shoes off, and the condition of the house suggested they didn't give a shit. And we're talking a million dollar + home.

Unreal.

[EK69]

Originally posted by A790

When I owned Neatfreak I remember going to this beautiful house in the NW just off of crowchild to clean the carpets. It was rented to some high-up engineer at an oil company.

That engineer, along with his family, just wrecked that place. They never took their shoes off, and the condition of the house suggested they didn't give a shit. And we're talking a million dollar + home.

Unreal.

Good point. Maybe try to see if there will be the same tenants for the entire time and interview them? Or if it will be a "whoever is in the area will stay there for however long they are in the area" type thing where there is no control over the ppl that stay there.

With that in mind definitely build in a property damage clause of some sort where the company agrees to fix damage that occurs ? Maybe talk to some lawyer who specializes in rental properties leases? Depending on the cost

[M.alex]

Probably hit or miss. On paper it seems ideal, but when my parents used to rent properties the WORST people, by far, were those whose rent were paid on behalf of a company.

[spike98]

After some research and tips from my lawyer i am definately going to move forward with it. The key is to have the lease in the name of the Company. It shifts the liability for rent, utilities, and damage to them.

Additionally im going to ad an addendum's for the occupants and require approval for them to change.

Im having my lawyer draft the lease today and ill share it if anyone is interested in doing something in the future.

[ddduke]

Originally posted by M.alex
Probably hit or miss. On paper it seems ideal, but when my parents used to rent properties the WORST people, by far, were those whose rent were paid on behalf of a company.

This.

Coming from a project manager who parties with project managers every friday afternoon at work and has a bunch of close friends in the industry. Job title doesn't really mean shit and if the company is paying for the house then the tenants will probably not be too worried about keeping it in pristine shape.

But then again you get some of the company men who don't want to even chance getting in any sort of trouble with the company so will go above and beyond to not cause any issues at all.

I'd still go for it though, at least if there's damages or something you have a wealthy company to pay for repairs instead of some random person.

[mr2mike]

Originally posted by ddduke


I'd still go for it though, at least if there's damages or something you have a wealthy company to pay for repairs instead of some random person.

Most they're on the hook for is the damage deposit. I suppose you could try to claim more in court. Not likely though.

[Xtrema]

Originally posted by A790

When I owned Neatfreak I remember going to this beautiful house in the NW just off of crowchild to clean the carpets. It was rented to some high-up engineer at an oil company.

That engineer, along with his family, just wrecked that place. They never took their shoes off, and the condition of the house suggested they didn't give a shit. And we're talking a million dollar + home.

Unreal.

When they are not on the hook for security deposit, nobody give a shit.

[88CRX]

I had a similar applicant on my place and when I asked if it would be the same person living there for the entire 1 year lease and they clarified probably not. So people could be coming and going, moving in/out every other weekend as their company saw fit.

I passed.

[spike98]

Originally posted by mr2mike


Most they're on the hook for is the damage deposit. I suppose you could try to claim more in court. Not likely though.

I went through with it. The "Tenant" as named in lease is the company and the "Occupants" are listed as the 4 individuals staying at the place. Both are responsible for damage, the company is responsible for rent.

I can also recover the cost to any damage over and above the deposit via small claims from either party.


Originally posted by 88CRX
I had a similar applicant on my place and when I asked if it would be the same person living there for the entire 1 year lease and they clarified probably not. So people could be coming and going, moving in/out every other weekend as their company saw fit.

I passed.

I would have too. The occupants are fixed and named by name in the lease. Any change must be approved by the "landlord"

[max_boost]

You can have everything thing drafted up, signed, etc. but renting will always be hit and miss. Nothing is guaranteed. Good thing about exec rentals are they yield much higher rent than your regular joe coming in from the street. Good luck.

[Rocket1k78]

The only sure thing in the rental world is landlords have no rights. Like others have said you cant tell anything by their job or their looks.

[heavyfuel]

Originally posted by Rocket1k78
The only sure thing in the rental world is landlords have no rights.

Except the right to charge whatever they want, right? You wanna get me started on this topic?

[88CRX]

Originally posted by heavyfuel


Except the right to charge whatever they want, right? You wanna get me started on this topic?

:rofl: :rofl: :rofl:

http://37.media.tumblr.com/tumblr_l0fq64fV291qbye7fo1_400.gif

[jdmakkord]

"Executive" renters through hopestreet.ca trashed our home. Bullshit background and credit checks that didn't really happen, and non existent inspections. Wound up costing us 10k in repairs and lost income. Couldn't even chase the tenants in small claims court as hopestreet.ca didn't get all of their info to track them down.

[spike98]

Well we got a sale offer on the house and after a bit of due diligence we backed out. We did however already sign the lease but there was complications with the security deposit that go us our out.

Lessons to learn here kids. Do not take post dated cheques to hold the property, always call references, and if its too good to be true, it most likely is.

There could be some litigation in my future for backing out of a lease but that headache i think is far less than if they would have trashed the place.