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Updated over 7 years ago on . Most recent reply

User Stats

11
Posts
2
Votes
Justin Beaudoin
  • Buy & Hold Investor & Rehaber
  • Green Bay, WI
2
Votes |
11
Posts

Short-term rental being paid by the insurance company

Justin Beaudoin
  • Buy & Hold Investor & Rehaber
  • Green Bay, WI
Posted

I have a few questions in regards to a short-term rental inquiry:

Background: I have ALE solutions contacting me about one of my single family homes for rent. They claim they are searching for local home owners displaced from fire damage of their home in the area. They also say the family would do all of the signing of lease, the background checks, application, etc. They said I would receive the rent check right from their company, but they will not co-sign the lease. As I understand this company is hired by the family's insurance company to find them a home while their home is repaired from the fire. They would like to do a 6 month lease (possibly longer depending on how long repairs take on the fire damaged home) and claim they will pay a "premium."

Here is ALE's response and list of questions:

Its for a local family that had a fire to their home.

The family (2 adults, 3 children, 1 dog) will be the ones to view the property, apply, sign the lease, and put down the security deposit just like any other tenant.

The only part that is different is our company will be sending the checks each month to pay for the rent, so the rent is guaranteed to be there on time each month.

We just need to send all the information to the insurance company first to review before we can have the family come view the property.

Once the insurance company reviews it, the family will call you directly to set up a showing and to apply.

You are free to interview them and ask any questions and then decide if you are comfortable renting to them.

If interested, can you get me the information below please?

Will you accept our company checks for the rent?

Your contact information?

Is renter’s insurance required or preferred?

What appliances are included?

If the washer and dryer is not included, is it gas or electric hook ups?

How much would the rent be for a short term lease?

Security Deposit ? $

Pet Deposit?

Application Fees?

Cleaning Fees?

Any other fees?

First available move in date?

Does the lease need to end on the last day of the month?

Option to extend Month to Month once lease expires?

Will the rent be the same for the extension?

Is a 30 day notice to vacate at the end of the lease okay?    

My questions:

Has anyone had experience with this? and should I consider this?

How should I respond to the underlined questions above to benefit our company (knowing this is being paid by the insurance company)?

I am asking $1,195/ month, what should I ask for the premium?

What should I be aware of?

Thank you so much in advance!!

Most Popular Reply

User Stats

206
Posts
364
Votes
Nicholas W.
  • Investor
  • Germantown, WI
364
Votes |
206
Posts
Nicholas W.
  • Investor
  • Germantown, WI
Replied

Although I have no experience with this, here is what I would think. Only do it if the applicant can afford the rent without the insurance company. Make it clear that they are signing the lease and if the insurance company doesn't come through for any reason that they are still fully responsible for the rent payment. As for a premium, ask what ever you feel is necessary to make up for such a short term tenant. Maybe an extra 20-25% to cover the month of vacancy that will potentially result when their lease ends. I would treat them like any other applicants, where the check comes from should play no part in your decision.

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