All Forum Posts by: Isa Carrasco

Quote from @Richard F.:
Aloha,

I always recommend you get a personal guarantee for corporate rentals, and perform a proper background/credit check as you would for any individual. Also, be sure you have a clause protecting you from someone running short term rentals out of a location that does not allow them, pocketing the difference between long term and short term rates. For violations of that type, the local law will come after the property owner...

@Isa Carrasco I own a duplex that I do MTR (30-day minimums) in North Austin. There are many companies looking to do this these days. It is a great way to increase your rent and get a stable tenant in there. If you want to go with a company like this, get a longer lease, increase your rental rate by 15%-20% of what the market value is, bake in a general maintenance fee to be paid by the company (for ex. everything under $200 is paid by the company), and get their insurance policy and look it over, and talk to an insurance company about your liability.

If you want to maximize your income I'd recommend doing it yourself. These companies might rent out a 3/2 for $2,500/month and then find tenants willing to pay $4,500-$5,000/month. They are taking on more risk but I'd rather make that extra income. You can furnish the property, list it on Airbnb, VRBO, Furnished Finder, and FB groups and get that extra cash flow. I increased the rent on my duplex from $2,450 to $5,800/month by renting it monthly.

Hello Isabela! I run an STR (Short Term Rental) company in Los Angeles and Orange County and we do this exact same thing. We have a total of about 24 properties, some we own and some we manage for property owners. Whenever we can, we prefer to rent to "Corporate Housing". We furnish the place, take care of the utilities, clean the place, landscaping, and we fix most property problems ourselves (unless its a major situation like the roof is caving in or the house is sinking....which we have never encountered). We professionally manage all aspects of the properties. I would say that our properties show "pride of ownership", we understand that we live & die by our reviews and therefore, we do the most we can to make sure our tenants our happy.

For the properties we do not own, we provide monthly reports to the owners and we also let them know that they may inspect the property whenever they wish with the understanding that if the property is currently in use, we must provide adequate notice to the tenant that we plan on entering the property on a given date and time. Ten times out of ten if the property owner wishes to come see the property, they usually wait until the property is empty or between stays. The greatest benefit to the property owner is that we do all the work, we professionally manage the property, and they get a check on the 1st of the month, every month.

If you are considering hiring a company to allow corporate housing, make sure you perform your due diligence on said company. After you ask all the obvious questions (what services will they provide?  What is their fee? Who takes care of problems?  Who is the property manager or who are the property managers? What companies do they hold contracts for corporate housing, etc.) Ask to see their portfolio of properties and then request if you could visit 1 or 2 of them.  Go inside them and inspect them. Whatever condition these properties are in will usually be a good indicator on how they will treat your property.  Good luck!

@Isa Carrasco

Not really any cons. Typically a local company may have people coming from other offices to stay or people relocating to area and they use this place first for them before they find their own place