I want to buy a multi family unit and rent it to my other business to allow that business to house the employees for free in it.
It’s 2 separate companies. One that will rent the property and put its employees in that unit as an employment perk.


The other company will collect the rent. 

Since the employees are not technically the renters does that mean I can kick them out at anytime? How can I protect myself if the one company has to fire an employee who is living in the unit?
[{"id": "gpnvdc7", "text": "You\u2019d probably do a master lease from company a to company b. Then company b has the tenants sign a free lease that has terms for eviction and breaking the lease.", "replies": [{"id": "gpp9fok", "text": "All of those must still comply with state and National laws for housing. I would get a large corporate real estate company involved with a multifamily team and legal support to give you advice. You can pay them a standard fee on the master lease in return. Something like 2% of the first 5 years, 1% of the next 5 years, .5% of anything beyond 10 years. Sell it like they're representing the landlord (you) in company A.", "replies": [], "depth": 2}], "depth": 1}, {"id": "gpnwbtr", "text": "You need to consult an attorney with expertise in this area to avoid accidently creating a tax avoidance scheme or even potentially self-dealing", "replies": [], "depth": 1}, {"id": "gpnwrbt", "text": "Obviously it matters where you are located, but I would think you would be unable to evict anyone from their unit. Lets say person A lives in the unit and works for company B. Well, the rent is free so person A won't be missing any rent payments. Now they're fired. Well, they still aren't missing any rent payments. What grounds would there be for eviction?\n\nDefinitely speak with a lawyer.", "replies": [{"id": "gpo0uo2", "text": "If it's a company perk and they're no longer an employee then the perk is revoked.\n\nWould be my not-a-lawyer view on it.", "replies": [{"id": "gpo41k6", "text": "But it really matters what state you're in. Would this fly in texas? Probably. Would this work in california? I highly doubt it.", "replies": [], "depth": 3}], "depth": 2}, {"id": "gpo5utt", "text": "You write it into the lease, for $1, that they have 30 days to vacate after the day of being fired with or without cause, or 30 days from the first day of job abandonment.   You might be able to make it less, but that's attorney territory. \n\nAnd you send a certified letter immediately to the unit/employee if you're taking any of those actions.", "replies": [{"id": "gpo8oie", "text": "Lets play this out. The employee gets fired. 30 days go by they haven't left. (why would they? They get to live in a decent apartment for $1 a month). Now you have to start eviction proceedings. What reason do you have to evict them? That they pay under-market rent?  Maybe you can convince the sheriff to evict them, now thats gonna take awhile. Heck, with the current eviction moratorium you cant even do it at all.\n\nNow maybe you actually charge market rent to these employees and pay them additional money that they can then use to pay this rent. Now they're fired, but they could still just keep paying rent and live there.", "replies": [{"id": "gpo9qwe", "text": "You just sign a month to month lease that automatically renews, then the landlord can evict them anytime, given proper notice. \n\nIf you don\u2019t have an ongoing lease, a landlord does not need a reason to not renew a lease, outside special rent control situations.", "replies": [{"id": "gpoazd1", "text": "That checks out. Still might have to evict the tenant though, but that could be said for any tenant.", "replies": [], "depth": 5}], "depth": 4}, {"id": "gpoqguc", "text": "&gt;What reason do you have to evict them? \n\nBecause you have a signed lease that says if they aren't working for you, they have to vacate.", "replies": [], "depth": 4}, {"id": "gpp8rfp", "text": "Charge them normal monthly rates and credit them the difference if they stay employed. Then if they are no longer employed they owe you the rent.", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}, {"id": "gputikb", "text": "The right to occupy would be conditioned on employment.  If employment ends their right to occupy expires.", "replies": [], "depth": 2}], "depth": 1}, {"id": "gpny4cn", "text": "Also you should also talk to an accountant about the  \"free rent\" being part of the employee compensation and corresponding taxes.", "replies": [], "depth": 1}, {"id": "gpo47v5", "text": "Not a good idea unless there are two separate buildings. Check your local housing code.", "replies": [], "depth": 1}, {"id": "gpondkr", "text": "Ask an attorney but I am pretty sure once someone established residency, tenancy laws applies. What establish tenancy can be as simple as personal belongings for an x amount of time.", "replies": [], "depth": 1}, {"id": "gpp7q8m", "text": "All your employees are legal? If not you get hit with human trafficking charge by ICE.", "replies": [{"id": "gpptflz", "text": "They\u2019re legal.", "replies": [], "depth": 2}], "depth": 1}, {"id": "gppb8p9", "text": "If I were the bank analyst, what I would do is ask your company to be the guarantor of the loan. So, you would have to companies that separate the entity of your business and your building, but you would get a loan based on the income of your company instead of the NOI of renting the building. Still, having a partial NOI will help you. The other is to have your company have a lease with the company of the building and the company paying enough rent to allow the NOI to meet the debt requirement. This can be done if you are the only owner of your company and it would need to be disclose to the bank.", "replies": [], "depth": 1}, {"id": "gppbiuo", "text": "I would protect myself by not pursuing this idea.", "replies": [], "depth": 1}, {"id": "gppfhbx", "text": "Whatever you do include a \"holdover\" clause that raises their rent significantly to above market rates if they stay after they are no longer employees and you have terminated their tenancy upon proper notice in your state/locality. Then you don't have to evict you can just require them to pay the \"holdover\" rent which they won't want to do.  \n\n\nRecently, I saw a tenant who did leave at the end of the tenancy because of just such a clause.", "replies": [{"id": "gpptlvz", "text": "This is great! Thanks!", "replies": [], "depth": 2}], "depth": 1}]