short term lease due to fire

[Nelson Leal]

Hello BP,

Looking for any advise on this one. I recently purchased a SFH in a suburb of Cleveland. Just finished the rehab and have it listed for rent. Have had some interest but with winter coming along and school already started leads are slowing up. 1 prospective tenant is on the market because their home burned down and the insurance company is paying their rent while the destroyed home is being rebuilt/rehabbed. The time frame given by contractors is 3-7 months.

I initially purchased to hold however due some recent changes in my investment goals I wouldn't mind selling.  If these tenants sign it will only be for 3 months (Max allowed to commit to) then month to month after that up to a total of 7 months.  3 months if they leave is having an empty home in the middle of winter.  Not good.  If they last 7 months that puts it to April, spring time and prime selling season.  Also, we intend to up the ask price of rent by 20%.  The tenant says that should be ok, who knows if the insurance company will do it or not but if so that would be an additional $250 in my pocket each month they are there.  

I've never experienced this type of situation.  Anyone out there lease to a tenant in a similar situation and can give any insight, tips, advise on how these type of lease/situation works with Insurance companies?

Thank you BP.