Employer as Tenant

[TonyMandrique]

Hello everyone,

We have a prospective tenant working for a small software company who in turn will pay for his rent. This prospective tenant told me that other landlords refused him because it is the company who will pay the rent. From our discussion, we sensed a problematic situation.

My questions are:
1 - Are there concerns or issues that we should be aware of in dealing with a company?
2 - Is there a different rental agreement that you guys are using if the tenant is in fact a company?
3 - Are there any special contract provisions that we should include in the rental agreement?

We appreciate any comments, suggestions or sharing your own experiences in dealing with companies. Thanks a lot.

Cheers,
TonyM

 

[brentdavies]

Their is something missing in the tenant`s story. Because he has been refused by other landlords, you need to look carefully to see why he been rejected. Maybe the applicant is a deadbeat, and the company is putting him up?

The lease would be what name? Corporate or the applicant`s name?

What province are you located in? Laws are provincial, so the answer is different for Ontario vs Alberta vs Quebec.

In Alberta, who pays the rent is not the issue, but who is on the lease and who will be living in the unit. Very common for companies to rent suites for employees and managers who are relocating for work. Corporate rentals very big a few years ago.

The gent would be the guest, and you can evict a guest just as easily as the leaseholder. So who is the resident is not an issue.

It`s the survey crew, 6 guys having a wild party every night that is my concern when renting to companies. I need to know who is the residents in the suite.

cheers

 

[invst4profit]

You need to research why the employer is paying the rent. If it is because the tenant is completely irresponsible he may be a total PITA which you do not want. Further due diligence or more information is required before advising on accepting tenant.
I see red flags.

Contact two previous LLs. If not possible to confirm previous LLs do not even consider taking this tenant.

 

[TonyMandrique]

QUOTE (brentdavies @ Mar 5 2010, 09:01 AM) Their is something missing in the tenant`s story. Because he has been refused by other landlords, you need to look carefully to see why he been rejected. Maybe the applicant is a deadbeat, and the company is putting him up?

The lease would be what name? Corporate or the applicant`s name?

What province are you located in? Laws are provincial, so the answer is different for Ontario vs Alberta vs Quebec.

In Alberta, who pays the rent is not the issue, but who is on the lease and who will be living in the unit. Very common for companies to rent suites for employees and managers who are relocating for work. Corporate rentals very big a few years ago.

The gent would be the guest, and you can evict a guest just as easily as the leaseholder. So who is the resident is not an issue.

It`s the survey crew, 6 guys having a wild party every night that is my concern when renting to companies. I need to know who is the residents in the suite.

cheers

According to the prospective tenant, he is also puzzled and can not understand why landlords do not want a company as "tenant". The guy and the company where he works for is based in Ottawa (according to the business card he gave us), and he`d been here in Toronto for 3 months now on business assignment in a government office. However, the contract has been extended for another 12 months. Hence, he is looking for a more private suite (he is currently staying in a shared accomodation with one family).

We plan to have his name in the rental agreement, pay his rent and let the company reimburse him.
Also, we will do credit and criminal checks plus require him an employment certificate and two personal references. Am I missing something here?

During the viewing of the suite, we laid down the house rules and specifically mentioned that he will be the only occupant, no overnight guests, no drinking & partying in the accomodation, no pets, no smoking, etc. He said he does not have any problems with all these as he does not drink, smoke and definitely not a party guy (he is married with two children - 22 and 18 yrs. old). He seems to be a nice and responsible guy.

Your further advice or comments are very much appreciated. Thank you.

Cheers,
TonyM.

 

[TonyMandrique]

QUOTE (invst4profit @ Mar 5 2010, 05:20 PM) You need to research why the employer is paying the rent. If it is because the tenant is completely irresponsible he may be a total PITA which you do not want. Further due diligence or more information is required before advising on accepting tenant.
I see red flags.

Contact two previous LLs. If not possible to confirm previous LLs do not even consider taking this tenant.

I almost forget to ask for his previous LLs as personal references. I`ll just do that. Any other due diligence aside from credit and criminal checks, copy of the driver`s license or photo ID, two personal references and employment certificate?

Appreciate your help. Thanks a lot.

Cheers,
TonyM

 

[Dan_Eisenhauer]

Having the employer sign a lease is not THAT unusual. Get a Dun & Bradstreet report on the company, and any other references you can find. See if they will give you fiancial statements.

There are no additional concerns or clauses that I think you need to address in the lease. If the company is reputable and solid enough to rent homes for its employees, you probably have an excellent tenant.

 

[TonyMandrique]

QUOTE (Dan_Eisenhauer @ Mar 6 2010, 08:29 AM) Having the employer sign a lease is not THAT unusual. Get a Dun & Bradstreet report on the company, and any other references you can find. See if they will give you fiancial statements.

There are no additional concerns or clauses that I think you need to address in the lease. If the company is reputable and solid enough to rent homes for its employees, you probably have an excellent tenant.


Dan,

Thank you very much for your advice. I`ll just do that and get more independent information aside from the company`s website (I checked their website, but, of course, what to be expected are good write ups).

Thanks again. I really appreciate it.

Cheers,
TonyM