Is it ok if I lease my condo to someone who has really poor credit if his company will pay his rent for him?

Question

Hi. I have to make very important decision today so please help me! There is someone who is interested in renting my condo . But he has really bad credit. Usually, I would never take him as my tenant, But in his case, his company will pay his rent for him every month to our account directly so I'm thinking of accepting him. If I do so, I'm not sure how to prepair the lease in this case. Do I have to do lease agreement with him or his company or both of them? What kinds of special contingency should I add on lease agreemet? What about utilities? Currently utilities are not inculded with rent and I'm worried he might not pay it in time, Should I included utilities with the rent so that his company also pays it?

Please give me a adivice. it will be a big help for me.(my time is running out and I have to find the tenant soon...)

Thank you!!!

Answer 1

It depends upon what you call bad credit. If the person is currently having financial problems, absolutely not!!!!! If they have old bad credit, and it looks as though they are turning things around, its worth looking at. If they broke a lease with someone else, absolutely not!!!!! Remember you are not special, they will do to you what they have have done to others. It also depends upon who the "company" is and if you think they will be in business for the term of your lease. Just because a "company" signs the lease doesnt guarantee anything . I would suggest asking the person for a double deposit, or if they have someone who has perfect credit who would cosign for them. Sometimes your better off leaving a property vacant than to fill it with the first person that comes along.

Answer 2

I would make the lease with the company and make sure it is real and he is not making this up.  If the utilities are to be put in his name then it will not affect you in anyway whether he pays or not.  If they are in your name then include them in the rent and have the company pay for them.  

Make sure that there is something in writing, in the lease, that the lessor(the company) is responsible for any damage to the unit.

Make sure that it is a reputable company!  If you are sure that it is then this could turn out to be a good working relationship for you.  If you are a good land lord then they may do this over and over again.  

Answer 3

What happens if he's fired or leaves the company on his own?  I had this happen to our company.  From then on we added a clause to the lease stating if a person is no longer employed at that particular company, he has to vacate the premises.  We lost thousands of dollars before adding that clause.  

Do the lease with his company as a co-signer, and I would include the utilities.

Answer 4

Do the Contract with him and have the Company Co-sign as responsible party if that is legal where you are. That's what I'd do.