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Updated about 2 years ago on . Most recent reply

User Stats

53
Posts
17
Votes
Ying B.
  • Rental Property Investor
  • Atlanta, GA
17
Votes |
53
Posts

Setting Rent, Security Deposit and Fees to Displaced Tenants Covered by Insurance

Ying B.
  • Rental Property Investor
  • Atlanta, GA
Posted

I have a high quality 4/25 single family unfurnished rental in Atlanta suburb that currently asks for $2500 rent.  It used to command $2650 but through the winter, I have reduced the asking rent to $2500.  Due to large percent of unqualified applicants, I have kept it vacant for 2 months now.  I just received an interest from a company that would be paying the rent and any associated fees on behalf of the insurance carrier of displaced insurance tenants.  They still go through any application and credit/background check we require.  They prefer a 3 month lease with month-to-month available after the initial lease term, in case there are any delays with construction. They are happy to pay a premium for the short term.  It is a family of 2 with 2 small dogs (shih tzus). They are looking to move in ASAP.  I don't mind the short term lease as there is garantee on the rent payment at a premium.  This should put me in the Spring-Summer time frame where I will have an easier time to find the next (hopefully better qualified) tenants compare to  now. 

My questions for the Biggerpockets community are: what are considered standard/appropriate amount for the following category since these are short term lease with flexibility and also it is a company that is paying the bill?  

  • Rent (I am thinking minimum $4000)
  • Once it changes rto Month-to-month, should I increase the rent for the first 3 months?
  • Sec deposit 
  • Pet deposit or Pet Fee 
  • Pet Rent 
  • Admin Fee 
  • Cleaning Fee 

Thank you. 

Most Popular Reply

User Stats

236
Posts
204
Votes
Phillip Austin
  • Property Manager
  • Denver, CO
204
Votes |
236
Posts
Phillip Austin
  • Property Manager
  • Denver, CO
Replied

Although there is potential with these sort of arrangements, I've avoided them because they tend to require more management/time. 

Going up to $4K/mo is a steep increase and might result in a 'no' from the insurance provider since it sounds like it's ultimately being paid by insurance. However, I could be completely wrong.

For the rest:

MTM: increase rent 10-12%

SD: one months rent

Pet deposit/fee: $300 non refundable pet fee

Pet rent: $35/mo

Admin fee: $200

Cleaning fee: $500

  • Phillip Austin
  • Loading replies...