I currently have a listing where the owners have moved out of the home, leaving it vacant. It’s a great home in a great neighborhood, and it’s reasonably priced, so we’re confident it’ll sell (at some point.) But in the meantime we’re exploring other options, and I came across the website for HomeTenders of America (www.hometendersofamerica.com)
Has anyone out there worked with this company before? Were your results positive? I’ve never heard of them, and I’d like to hear a first-hand testimonial if possible.
Their business model makes perfect sense, and sounds like a win-win-win. This is generally the basis for a sound company. Here’s the short version of how it works:
HomeTenders finds and interviews people who are willing to live in vacant homes while they sit on the market. These tenants agree to professionally decorate the home, and to keep it in pristine, show-ready condition. In exchange, these tenants get to live in upscale homes in upscale neighborhoods at significantly reduced rental rates.
Here’s how I see everybody winning:
Homeowner
No longer has a vacant home. This reduces the risk of vandalism & other problems.
Can keep insurance on the home. (many insurance policies won’t cover homes which have been vacant for too long.
Reduced carrying cost. HomeTenders does NOT charge the homeowner, and the tenant pays all utilities.
Increased chance of selling. Well decorated homes are more likely to sell, and for a higher price.
Tenant
Gets to live in upscale homes in upscale neighborhoods at reduced rates.
For the right personality type, this could be a fun way to live.
HomeTenders
Earns rent from properties they don’t own. (can’t get a much better profit margin than that!)
So what’s the downside? I’d love to hear from you.
Your exploring options Realtor,
Chris Butterworth
4 comments
Comments feed for this article
Trackback link
http://www.butterhomes.com/blog/index.php/has-anyone-used-hometenders/trackback/
September 13, 2008 at 11:57 am
Eric Lee
I can think of one massive downside to that - how carefully does Hometenders screen their renters? Renters paying reduced rates to live in nice houses but with no real assured permanence? Professional transients?
Also, what are the legal ramifications of this situation - have you created a rental situation? If so, then the Rental Code (Az Code - exact name escapes me) applies. Who is accountable if the tenant doesn’t pay or destroys the house or refuses to leave? Hometenders or the homeowner?
I can think of other complications (Who decorates the house? What are the limits? Can they paint the house? Can they do more than that to the house, ie hang stuff on walls, that might create wear and tear? Who pays for everything? What if their taste doesn’t match the owners’? What if their taste doesn’t sell? Are you creating possible unnecessary hassles in showing the house since it’s occupied?) but I admit I didn’t check their website to see if there’s more info.
While I like the concept, I would let them try it out one someone else’s house before I advise my clients to do this.
September 13, 2008 at 2:07 pm
Chris Butterworth
Eric - great questions! Thanks for your insight.
I’ve thought through some of these (but not all of them), and the HT website gives some answers, but it doesn’t address the “what if” side.
What if the tenant refuses to move out? Since they’re living there with consent, I’m guessing we’ll have to follow the landlort-tenant laws, and it’ll take about 25 days to get them out of the house.
What if the tenant doesn’t allow a showing? The website says they will, and that it’s all part of the deal. But what if they don’t? What leverage does the seller have when the service is free, they don’t receive any rental income, and the tenant already lives there?
Damage, decorations.. Same questions apply.
Professional Transients? If I was single & had a job with lots of travel, this might be a way to “sample” different neighborhoods in different cities, at discounted prices and without long-term leases.
I agree with your last sentence COMPLETELY, which is why I’m looking for some first-hand experience!
September 20, 2008 at 10:31 pm
Matt Fox
Eric brings up some good points. The law isn’t in your favor if the tenant is a bad tenant. It’s a long painful process to evict in Arizona.
The devil would definitely be in the details of the contract with HomeTenders. I wouldn’t want to hold them harmless for anything and want to see evidence of general liability and professional liability (E&O) insurance to cover them if they ‘recommend’ bad tenants. Most of your questions and concerns should be addressed in their contracts. Have you seen those yet?
Last, a landlord policy is generally a lot less expensive than a vacant home policy. Your homeowner policy will not cover vandalism, burglary or malicious mischief after 30 days of being vacant. However, with the right vacant home policy these can be covered.
October 9, 2008 at 12:00 pm
Barbara
Eric and Matt-
Hometenders of America does complete background checks, credit checks, personal interview and has a team of interior designers review the furniture to make sure it is applicable to the program.
“Hometenders” are sub-contractors of Hometenders of America. They are NOT renters or Lessee’s and they sign a contract agreeing to these stipulations in addition to agreeing to move out on a 10 day written notice.
With regards to damage -weekly inspections are performed to assure that the hometender is performing their duties and we address any deficiencies quickly. We allow our hometenders 5 days to move in-shortly thereafter interior designers stage the home and make sure it is in “model home” condition. We do not allow painting or other modifications. Pictures, mirrors, etc are required to enhance the house. These are hung by professionals to ensure no damage to the walls. Lastly the designers match the furnishings of the hometender with the style and type of home.
As for liability issues are concerned, every hometender must carry a $300,000 liability policy along with a minimum of $25,000 on their contents. Hometenders of America follows behind with a $2 million blanket liability policy.
Yes a landlord policy is less however; does your homeowner/ seller want to be a landlord or want to sell his home? With this program he/she does not have to give up his regular homeowner policy. In addition program to the homeowner and the realtor is FREE!!! Our hometenders pay the utilities and our company pays for the pool and landscaping.
Sounds like a awesome program to me!!!