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How to rent my 2nd floor to a construction company? (Newbie)
Hello everybody, a contractor in my area is interested in leasing the second floor (apartment) of my two family home. He's hired people I know in the past, and I've known of him for 1-2 years. He provides housing to employees who don't have housing, and they do a lot out of town work. This is to say, I expect occupants to be home mostly on weekends. He's hiring more employees and I offered to rent him my 2nd floor apartment which is currently vacant. This will be my first time leasing the apartment, I've bought the home in August 2019 and don't have a mortgage. Do you have experience with this kind of lease? If so, what do wish you knew before leasing to a company? What do you think of my numbers below? What am I missing? Thank you so much for your time. Location is Syracuse, New York, USA.
Unit size: 1,000 sq ft. approx. (dining/living=465sqft, foyer 70sqft, bedroom 1=130sqft plus closet, bedroom 2=110.5sqft plus closet, kitchen 150sqft, sunroom 100sqft) - all hardwood floor
Here are the numbers I'm working with in my head right now:
- $1,300/month with $1,300 security deposit
- Unsure if month-to-moth, 6 mo. lease, or 1 yr. lease (what is your advice?)
- Water, Electric and Gas included - I cover $400 or $500 max for gas + electric and occupants or lease holders pay the rest. (Thoughts?)
- 3 tenants
- $200 per additional tenant, up to 6 occupants (this one is the one I'm negotiating a lot...with myself, please advice!)
- Laundy in basement floor (yes, I would be sharing my washer and dryer with them)
- Furnishings: 2 beds with metal frames, box springs, and mattresses; 1 lawson couch; 1 dining table with chairs.
- Appliances: stove and oven, refrigerator
- Chimney
- Large front porch shared with 1st floor residents
- Separate front door entrance, basement access is through a staircase at the rear of the house next to kitchen
- Street parking (we have a tight, shared driveway and can't accommodate off street parking)
Important note: The first two tenants moving in will be relatives of me and my husband (a nephew and a cousin), but the rest of the workers moving in, in the future I likely won't know.
I have a small back yard where my husband and like to make fires and hang out when the weather is nice. Should I give them access to it via the lease agreement? Family members would be welcomed to join us of course. My husband and I don't drink alcohol, my concern would be having a crowd or excessive alcohol consumption in a space where I like to go for peace, calm and privacy (it's like a mini getaway).
The market: A residential lease comparable to my property could go for $750 unfurnished, off street parking, no laundry on site, no wifi, water included, tenant paying electric and gas. Here is a comparable listing that is in the general area: https://www.trulia.com/p/ny/sy...