Employee Rent Discount

Hello,

My company is considering adding an employee rent discount (for active full time employees) as a perk to our benefit plan. If the employee separates employment but continues to live in the property, they would no longer be eligible for the discount.  With that said, how does your company handle this? Do you build language into the lease agreement or have the employee sign off on a separate document?  Thank you in advance!

We use a separate lease addendum for employees, keeping them MTM while they work for the company as well.

Separate agreement
This also ensures that we can terminate their living arrangements at the property if there were concerns, as well as other language including removing rent discounts

Employees should be month to month, and the language embeded in the employee lease contract should be outlined and/ or also be in the employee handbook for more insight on on-site employees. Some companies will arrange the language that should you be terminated willfully or unwillfully that you will have certain time frame to vacate or you can opt to pay market rent.

We have offered this benefit for a number of years. The current discount is 25% off the Base Rent and various fees are either waived or reduced by 50%. While we use Blue Moon leases, we do supplement with an Employee Addendum that allows for a 30 Day Notice to terminate by either party. Discount is only provided through the last day of employment. Typically, if an employee was terminated at will by an employer, they do not permit the former employee to continue residency for a number of reasons. If an employee is leaving employment by a company to work for a competitor, it is not customary to allow that employee to continue to live on site. The Employee Addendum spells out the guidelines to ensure that all are aware and on the same page when an employee moves on site and accepts the discount and terms of the Lease and Addendum. In closing, we generally do not allow a new hire to move onto a property and receive this discount until the 90-day probationary period has ended. Hope that helps answer any questions. I would encourage any company starting this benefit from scratch to be consistent in their practices.

We’ve been in property management since 1948 and are investment builders and developers.

We do offer a basic discount for full time maintenance staff members on their property which reverts to published rent upon termination of employment.

This however is secondary to having properly qualified and experienced team members. Our experience has shown us that most of our qualified and experienced maintenance team members do have their own homes, so while this benefit is available we have found it is not as big a draw as we had thought it might be.

We offer it at my company and we just implemented an employee lease after we fired someone and he took advantage of the extra time on the property - he was given 6 weeks to vacate and didn't have to pay rent. Our lease now gives 14 days to vacate upon termination which was standard when I worked for another company that offered free apartments to certain employees and discounted apartments to other employees