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Updated about 2 years ago on . Most recent reply
Setting Rent, Security Deposit and Fees to Displaced Tenants Covered by Insurance
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
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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