Applying with a Corporation

[Darren Redfearn]

Applicant is saying they want to apply to a long term rental with a corporation?? Anyone every dealt with this? My first instinct is to say no, because I’m renting out a single family home not opening a line of credit,  and not sure why they would request a corporation apply instead. 

[Jeff Copeland]

Ask them why, and make sure you get a legit answer.

A couple of reasons I have seen companies do this: 

1.  A company renting out a house for their employees (for example, 4 employees building a bridge or a parking garage, 12 month project in a city away from home, renting a house is cheaper than hotel rooms and per diem). This can be a legit way to get your house rented, possibly at premium rent, to a stable entity for an extended period of time. In this scenario, you might consider hiring a local landlord-tenant attorney to draft and/or review the lease, to make sure you are as protected as possible and have some recourse against the occupants if they cause problems. But people in this scenario are usually there to work, not to party.  

2. People who want to lease from you long term through a Corp or LLC, so they can turn around and do short term rentals (essentially STR subleasing, or arbitrage) with your property. This can be a major red flag, because it probably isn't your intended use, it may not conform to zoning, and it could result in increased wear & tear, complaints from neighbors, and code violations.