Nonprofit suggests lease at significant loss to owner

[Maegan Erb]

My husband and I purchased our 3rd sf rental in April with the intent of renting it as shared clean and sober house. It is outfitted to serve 6 women. Currently we have 1 month to month tenant. We have received an offer from a respected local nonprofit that runs a clean and sober program to lease the house long term and use it for their participants.  The offer is tempting because it would meet our goals for the house, serve the community, and free up our time for the next investment. However, when running the numbers on BP calculator the requested lease amount leaves us in the negative cash flow of $644 p/mo.

I’ve checked with my realtor and the nonprofit has offered $1,000 below market rate. What are some ways we can engage them in constructive negotiations to pay a market rate lease amount? Thanks in advance for your suggestions.

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