Posted by JohnBoy on January 24, 2001 at 14:04:07:
You are being presented with the rental contracts by the tenants??? You should be using your own rental contracts, not what your tenant brings you.
Did I understand this correctly?
rental contract advice need quick - Posted by john
Posted by john on January 24, 2001 at 13:51:22:
i recently put a property up for rent(home is payed off free and clear and i have been using the equity to do other deals).i want to hold the property for awhile longer before possibly selling.i am being presented with 2 rental contracts tomorrow.first is a corporate rental and second is a single woman.the advice i need is should i go with the corporate renter(if terms are right naturally) and what specific clauses should i include to protect my asset? first time doing rentals. contracts came up quicker then i thought before i could research enough info. please help thanks to all
Re: Corporate rental contract - Posted by Dave T
Posted by Dave T on January 24, 2001 at 21:55:14:
Once upon a time, I worked for EDS Corporation. Most of our work was project management and consulting at the client site. Sometimes to meet the project requirements, we would bring in out-of-state staff for their specific technical expertise.
Often, if the staff would be on the project for an extended period, the company would rent apartments near the client site on a six month term. The company agreed to pay a higher rent for the “short term” lease, and guaranteed a six month minimum, even if the project finished sooner.
One advantage to the landlord was that our temporary staff would only use the apartment(s) during the week, and go “home” for the weekends. No weekend parties, late-night entertaining, and therefore, minimal wear and tear on the unit.
Corporate tenant arrangements can sometimes be very profitable for the landlord.
Re: rental contract advice - Posted by JPiper
Posted by JPiper on January 24, 2001 at 14:37:30:
I agree that you should be using your own rental contract if you?re not. I disagree with the concept that the corporate tenant would fall under the Fair Housing Laws. Corporations don?t have race, creed, color, national origin, family status, handicaps, age, etc?because the corporation is not a natural person.
My standards for evaluating a corporation would be much different than my standards for evaluating an ?individual? tenant. I would want to look at the financial statements of the corporation. If it were a small, closely held corporation then I would probably want a personal guarantee from a corporate officer?who I would then check out according to my usual standards (like credit report, income, etc etc). Further, I would want to clarify the USE that this corporation wants to put the property to. There are some types of USE that would not be acceptable in my eyes?in fact, some types might not be legal based on the zoning of the property.
My concern with a corporation might be that they intend to sublease the property. That would likely be unacceptable to me unless it were a strong corporation and I had a very strong personal guarantee from a responsible person.
JPiper
Re: rental contract advice - Posted by phil fernandez
Posted by phil fernandez on January 24, 2001 at 14:22:32:
Make sure you apply the same standard of qualifying to both potential tenants so you won’t run afoul of the Federal Fair Housing Laws.
And as JohnBoy said, use your own rental agreements. You’re the guy whose renting out the place.