Here is what you need to know when screening a corporation rental application and how to handle the lease when a corporation wants to rent your property.
Managing Rental Property Corporate Leases: A Guide for Philadelphia Rental Property Owners
Hey there, fellow landlords and property owners! John John here, bringing you another episode of the Grow Real Estate Investing Podcast. Today, I'm diving into a question from Karisha Galway about running applications for corporate leases. It's a topic that's more relevant than you might think, especially with the rise of Airbnb arbitrage.
So, what exactly is Airbnb arbitrage? Well, it's when individuals rent properties and then sublease them on Airbnb, often under a corporate name to protect themselves from liability. Now, here's the kicker – as property managers, we're all for Airbnb rentals, but we can't have them operating under a corporate shield, leaving us high and dry if things go south.
That's where our application process comes in. When it comes to corporate leases, we require the signer to not only represent the corporation but also sign under their personal name. This ensures accountability and gives us someone to pursue in case of damages or unpaid rent.
But wait, there's more. We also conduct thorough criminal and credit background checks on the individual signer to cover all our bases. It's a common practice in the industry, and it ensures that both parties are protected throughout the lease agreement.
Now, you might be wondering why we're so adamant about this process. Well, it all comes down to accountability. Whether it's a corporation or an individual, there needs to be someone legally responsible for upholding the terms of the lease.
Plus, banks often require individuals to co-sign for their LLCs, further emphasizing the importance of personal accountability in these arrangements.
So, to all the rental property owners out there considering corporate leases, remember – transparency and accountability are key. By following a thorough application process and ensuring all parties are held responsible, you can protect your investment and enjoy a successful rental experience.
And there you have it, folks – my insights on running applications for corporate leases in the world of Philadelphia property management. Until next time, happy investing!
