Registered: 1335847721 Posts: 17
Reply with quote #1
Has anyone rented their property to a displaced tenant (i.e. an individual or family that is being provided temporary housing by their homeowners insurance after they suffered an insurance covered loss) through one of these temporary housing agencies like CRS Temporary Housing?
They said to make the lease between the landlord and the actual residing tenants. But now I am thinking that the lease should actually be between landlord and insurance company, while naming the tenants as the permitted occupants. This would provide more protection in the event the tenant does not vacate. It's definitely better to be able to sue an insurance company than an individual with less means. Does anyone have any experience with this type of rental? Thanks alot.
Registered: 1150855007 Posts: 943
Reply with quote #2
The insurance company might find it a bit less threatening if you asked them to sign as a co-signer. I think it reasonable to protect yourself if the tenants fail to move out and simply stop paying rent. Otherwise insist on the tenants passing all the usual qualifications.
Registered: 1180625843 Posts: 4,861
Reply with quote #3
The area I own most of my rentals had a wildfire which burned 285 homes this past summer. I had a home burn but luckily had a vacancy so the displaced tenant moved into the vacant unit. But there were a lot of homeowners which received insurance money for rent until they found or built a new home. The amount they were allotted for rent was pretty generous and many also received money for renting furniture while renting.
As far a getting an insurance company to sign the lease...I find that unlikely. They are giving the tenant money for rent, they are not the tenant and seeing they are in the business of assessing risk, I cannot see them going along with that. Most people in this situation have "home owner" mindset and are not your typical tenant. The issue would be how temporary the arrangement would be. Turnover is not cheap. The other issue is timing. Some times of the year, it can be easier to fill vacancies than other. In our area above market rates were paid because the lease was so short term. __________________ Gene Hacker
Passive and active real estate investment opportunities.
Home Inspections in Bakersfield and all of kern county: