Leasing to Government Agency Option

[Damon Whitten]

Hi All -

We close on our first rental tomorrow and have a few options to rent the vacant property.

One avenue that has come to our attention is renting to the Coast Guard.  They have shared details of a program they offer to enter into a 5 year lease with local landlords to help with the low inventory in our area.

We would receive the rent payment directly from the Coast Guard and not the tenant.  We would be responsible for utilities and then reimbursed by them.  We have the ability to work with them to increase rents with supporting evidence on an annual basis.  

They have their own lease they use instead of the lease we have prepared to use.  We certainly need to do some more research and exploring on the topic.

But we were hoping to hear feedback on the pros and cons with this arrangement especially since it is our first property.  Our real estate agent, who has multiple rental properties in town, thinks it would be a great opportunity to partner with them.

Thank you for any feedback.