I've only ever signed rental lease agreements before with a corporation. I may have an opportunity to rent a home from someone advertising in a Facebook group for a particular neighborhood.
What are the risks or advantages to signing a home rental lease with an individual vs. a corporation?
Thank you.
Rental Agreement w/individual vs. company/corp?
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Re: Rental Agreement w/individual vs. company/corp?
Are they running this as a side hustle or a hobby? How many rental units do they have?
I own a occupy a duplex and rent the other unit out but I am also a member of the state and county landlord association and use the standardized forms and processes that most landlords use in the state. When you're saying corporation versus individual do you mean like a real estate investment trust or some large corporation with multiple locations or big property Management company? Versus more of a Ma and PA operation I think a lot of rentals for real estate are held as an LLC if it's not their personal homestead.
I own a occupy a duplex and rent the other unit out but I am also a member of the state and county landlord association and use the standardized forms and processes that most landlords use in the state. When you're saying corporation versus individual do you mean like a real estate investment trust or some large corporation with multiple locations or big property Management company? Versus more of a Ma and PA operation I think a lot of rentals for real estate are held as an LLC if it's not their personal homestead.
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Re: Rental Agreement w/individual vs. company/corp?
Corporate-run complexes have three-ring binders. There is likely to be essentially zero flexibility. Maybe zero actual thinking.
A private landlord may be doing this for the first time or may have been in the business for ages. Either way they may not exactly follow the provisions of the lease. Or local laws. Probably a particular issue when assessing damage charges when moving out.
A private landlord may be doing this for the first time or may have been in the business for ages. Either way they may not exactly follow the provisions of the lease. Or local laws. Probably a particular issue when assessing damage charges when moving out.
Re: Rental Agreement w/individual vs. company/corp?
In some jurisdictions, certain laws pertaining to landlord-tenant matters do not apply to individuals who own and manage a small number of rental units.
In Georgia, for example, most of the laws governing security deposits do not apply "to rental units which are owned by a natural person if such natural person, his or her spouse, and his or her minor children collectively own ten or fewer rental units; provided, however, that this exemption does not apply to units for which management, including rent collection, is performed by third persons, natural or otherwise, for a fee."
In Georgia, for example, most of the laws governing security deposits do not apply "to rental units which are owned by a natural person if such natural person, his or her spouse, and his or her minor children collectively own ten or fewer rental units; provided, however, that this exemption does not apply to units for which management, including rent collection, is performed by third persons, natural or otherwise, for a fee."
Re: Rental Agreement w/individual vs. company/corp?
Only things that matter is the contact you sign and applicable laws.
Read your lease!
The risks likely don't change much. One can anecdotally attribute more or less risk with a "sophisticated company" or a "mom and pop landlord". 6 of one...
Read your lease!
The risks likely don't change much. One can anecdotally attribute more or less risk with a "sophisticated company" or a "mom and pop landlord". 6 of one...
Re: Rental Agreement w/individual vs. company/corp?
You are probably more likely to get a good deal from mom & pop, but with the risk of poor service (for instance if you have a dispute or need repairs).
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