Corporate Housing Advice Needed

[Isa Carrasco]

Hello, 

I currently live in Austin and am looking to rent by house out. I was approached by someone who has a corporate housing client. They would apply just like any other tenant and provide any financials needed to be approved. 12 month lease with option to renew. They would furnish the home, place utilities in their name, have landscaping and cleaners on call. Corporate housing included the following situations: Business travelers, Extended stay visitors, Displaced homeowners, Travel nurses/hospital personnel, government employees, attorneys, short-term job assignment employees & relocation companies.

Does anyone have experience with a situation like this? I can't think of too many cons but want to make sure that I am not missing something. 

Thank you! 

Isabela

[Conner Olsen]

@Isa Carrasco I own a duplex that I do MTR (30-day minimums) in North Austin. There are many companies looking to do this these days. It is a great way to increase your rent and get a stable tenant in there. If you want to go with a company like this, get a longer lease, increase your rental rate by 15%-20% of what the market value is, bake in a general maintenance fee to be paid by the company (for ex. everything under $200 is paid by the company), and get their insurance policy and look it over, and talk to an insurance company about your liability.

If you want to maximize your income I'd recommend doing it yourself. These companies might rent out a 3/2 for $2,500/month and then find tenants willing to pay $4,500-$5,000/month. They are taking on more risk but I'd rather make that extra income. You can furnish the property, list it on Airbnb, VRBO, Furnished Finder, and FB groups and get that extra cash flow. I increased the rent on my duplex from $2,450 to $5,800/month by renting it monthly.