A small company vs. normal tenant wants to rent my condo -- what do I need to know?

Question

I have a 2 bed / 2 bath condo in Tempe AZ that we rent out -- in the past it has been a normal tenant lease but we now have a small Internet marketing firm that wants to rent it for their traveling "executives" -- one that will be there 75% of the time and the others will be traveling in and out of town...

What type of lease will we need to have (we will require that the lease be in the company owner's name vs their company) and what do we need to know?

I have added a $150 cleaning fee to the regular security deposit and will do a 6 month vs 12 month lease to see how it goes.... advice and suggestions from folks with experience in this area is MUCH appreciated -- this is a significant investment for me and while I don't want to jump at just anyone who is applying, we have had the unit vacant for 2 months now and I think if we know what we are getting into and handle this in a smart way it will be OK... thanks!

Answer 1

Before you get into trouble with the city, first go to the city hall and check on the guidelines for home businesses. What is the zoneing for your building;residential, commerical or both?

One city I lived in I could not work from my apartment, and no deliveries. Another city ten miles away, I had to get permission from the city and the owner of the property to work from my apartment. I could not have people coming to my apartment to conduct business. I could not put any type of signs in my window with the business name. I could receive UPS packages and US Mail only.

Answer 2

A small business might a more solid investment. I would definitely make sure to have a lease in the owners name. If the company falls thru on payments then you can go after the individual person for payment. I would also ask for a schedule of which individuals are going to be there the other 25% of the time. If it is feasible, you should check the unit after every user and keep a log of any damages or things that need repairing, keep the company aware of the log file so they cannot try and get out of payment for damages (they may say they don't know who did it so they won't pay)