Renting multifamily unit to companies

[Ryan Brown]

Good morning everyone! I have a multifamily property in the Bronx, NY and curious if anyone has rented out their units to a company. What are the pros, cons, etc.?

I see it as a safe alternative than renting to tenants with vouchers who may decide not to pay.

Curious on your thoughts and God bless!

[Evan Polaski]

What kind of company are you talking about?  

I know of some companies that will sign a corporate lease on a block of market rate apartments within a complex, to then sublease to students.  They are basically a "student housing" company that offers their clients (the students) more housing options.

Depending on the financial strength of the company, you could be more likely to get paid, or less likely.  A company is just that.  If they are not turning a profit, they vacate and say "sue us".  A true tenant is at least fighting for their ability to have shelter.

Also, presumably that company will ultimately be putting someone in the unit, which you may have no control over, since you leased to the company.  And while they may pay, their tenant may become a nuisance for the entire building, causing your other tenants to become more work and less likely to renew.

Just a few things to think about.