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Ray, Lawyer
Category: Real Estate Law
Satisfied Customers: 40979
Experience:  Texas Attorney for 30 years dealing in real estate
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A business is interested in renting one residential property

Customer Question

A business is interested in renting one residential property we manage.
This house is a regular 4 bedroom house with a garage, 1260 sqf living space.
The business provides boarding and food to people.
Their clients are mostly from shelter homes who are eligible to get government assistance.
They have some medical history but not serious illness.
They are independent, can walk and take showers and eat by themselves.
They all seem to be over 50 years old but not everyone is senior.
There's one caregiver staying with the clients 24 hours.
He cooks, provides food to clients, does cleaning and takes care of everyone.
The business owners want to rent our house and arrange possible 9 clients + one caregiver
in our four bedroom house. They offer to give higher rent.
What kinds of risk do we have if we rent to them?
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  Ray replied 1 year ago.
Hi and welcome to JA. Ray here to help you . I can think of several reasons this may be problematic.As you state liability coverage is a big issue and liability overall.Thats alot of people living there higher chances of injury.Also you need to check your HOA or city zoning this is a business and may not be legally possible. It is not unheard of people in such businesses wander off and cause problems to neighbors or others.The neighbors hre likely will not be receptive to this either and may get the city or HOA on your case. The tenant here must have proper licensure if this is assisted living or similar facility.Expect visits from the state to check up on them and if there are complaints you can be drug into that as well. Honestly I would not get into this.If they want a place to operate from they should buy one.Assuming this risk here even at higher rent may make real problems on several levels for you as landlord.I cannot say it is a good idea I think I would look for normal residential tenants with less liabilities here. I appreciate the chance to help you tonight.Thanks again.
Expert:  Ray replied 1 year ago.
If you can positive rate it is much appreciated.