Residential Lease to Group Home

[Daniel Frank]

Hi BP, Our agent brought us a deal where a colleague is interested in renting our residence to, in turn, manage a group home for kids and teens that is state funded. It requires us to build an additional bedroom. We don’t know anything about that business, however it just requires us to lease to him. He’ll carry a $2 mill. Insurance policy as well as renters insurance. He is currently offering to rent at $200 above the current market rent and multi year lease.

One concern we have is the wear and tear on the property as there will be at least 5 kids plus their staff. Any advice in this realm? What should we lease for etc.? Thanks!