Rent to a gold company?

Question

We have a SFH 5bd, 3 ba with pool home in Las Vegas. We have a gold company (NewCastle Gold) wanting to rent our house for a year, at least. From their website, it seems they've been in business since at least 2013 and have 2 other projects going on at other places, so not brand new. There will be between 3-6 of the same people in the house at most times and they are willing to pay a year of rent up front since we've been hesitant about the situation. The company would be the ones paying the rent, not the tenants. I still want to do background criminal checks, but they don't want credit reports ran, which I figure isn't really needed anyways since the individuals aren't paying the rent.

Would you rent to them? What red flags should we look for? How would you change the lease from a single family to a company?

This is our 2nd rental home and 2nd tenant to ever rent to, so we are still pretty new to the game. Thanks for any advice given.

Would you rent to them? What red flags should we look for? How would you change the lease from a single family to a company?

This is our 2nd rental home and 2nd tenant to ever rent to, so we are still pretty new to the game. Thanks for any advice given.

Robert Adams · Answer

@Phillip Dwyer I agree in Vegas there are so many time waster tenants you start to look for those red flags as early as possible as to not waste your time as well as your owner's time.

Christopher Brainard · Answer

@Stephanie Hardy

I think your biggest issue is going to be employees coming and going through the house without notice or approval. I highly doubt that they will notify you when someone new is living there so you can run new background / criminal checks.

-Christopher

Omar Merced · Answer

Run criminal background checks for security and liability reasons or most employers run it so have them send you a letter stating that and assuming the responsibility.

Deanna McCormick · Answer

You'll have no idea if it's going to be 3 people living there or 10. the people won't give a yahoo about the place and I personally wouldn't do the deal.

Phillip Dwyer · Answer

@Jay Hinrichs exactly.  In this town, we have a lot of people that get paid in cash, but don't pay their bills.

Jay Hinrichs · Answer

@Phillip Dwyer  I could see that like they have super crappy credit... or evictions etc..

Phillip Dwyer · Answer

@Jay Hinrichs When a potential tenant leads out by saying they'll pay a year up front, that signals to me that they are trying to compensate for a weakness in their application.  Why pay a year up front if not necessary?  I'm not saying it's a deal killer, but more often than not, I've noticed it to be a smoke screen.

Jay Hinrichs · Answer

@Phillip Dwyer  curious why you think prepaid rent is a red flag  ( other than the obvious criminal's that only deal in cash etc).

when I have rented winter homes in PS and looked in Vegas they all wanted the full amount of the rent up front.. was not a yearly rent but say if I was going to stay 4 months they wanted it up front and of course you pay a big premium for this as well.

Phillip Dwyer · Answer

If you decide to move forward, instead of pre-paid rent, get maximum security deposit.  I've rented to a few entities, but they were much more established than a three year old company.

BTW, anytime someone offers to pay a year up front, that is usually a big red flag for me.

Jonathan G. · Answer

Hi Stephanie,

There is simply too much risk in willfully placing yourself as a landlord into that position. You need to be aware of who will be living full time in your property and you need to have an individual (or individuals) whom you can hold personally responsible for any issues.  You will need to tighten up your contract for that particular detail given the potential transient nature of the tenants. You could also ask for a premium on the rental price.

Rent to a gold company?

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