Should I rent to a Construction Company?

[Andrea J.]

Hello BP,

I would appreciate any insight/advice regarding this topic. I have recently closed on a SF, 3bed 2 bath in an extremely small town. A Realtor representing a construction company asked if I'd be willing to Lease the property for 18 months so the sub-contractors could stay during the week while completeing this 18 month project. The construction company will be paying all their rent. And no SSNs were provided so I can't run background checks. I'm thinking I should pass, but just wondering if anyone else has done this and what was your experience.

Thanks in advance!

Andrea

[Will Fraser]

Hi @Andrea J.!  This is a cool scenario to get to digest with you.  

In my opinion I like the sound of this with a few caveats:  

1. 1. I would ask the builder to put down a larger deposit in light of the transient, unnumbered, changing, or unverified nature of the tenants (if legal)
2. 2. I would ask the builder to sign a specific agreement that upon termination of lease all damages occurring during the lease (if any) will be repaired by the builder.

Builders commonly use workers for their projects who are coming from outside the area.   These people are a varied as the rest of us, to be sure, but it is not uncommon to see these houses full of people who are working 12 hours a day and sleeping most of the rest.  With the right provisions with the builder ahead of time, I could see this being a real win-win.