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General Landlording & Rental Properties

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Patrick Laffey
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Tenants wants to add 3rd tenant to 1br unit

Patrick Laffey
Posted Feb 2 2024, 11:54

I have two tenants that are pretty good tenants but don’t have a lot of money. The end of the lease is coming in a few months and they keep asking to keep the rent the same price because they can’t afford much higher (currently could rent maybe $50-100 more a month on the unit, but would need a lot of repairs, cleaning, and occupancy while I do this so I’m fine being a little under). 

Today the tenant asked if they could renew the lease in a few months but add a third person to the new lease. It’s a 1 bed 1 bath unit, maybe 600 sqft, but I assume they’re all trying to save money best they can. It seems like a positive would be that I would be more confident they can pay every month and I could probably charge a little more since it’s now split 3 ways and get closer to market rents without cleaning or repairs. 

Assuming this is legal in my city having 3 people in a 1 bedroom unit, are there any down sides I should be aware of? 

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Bill B.#2 1031 Exchanges Contributor
  • Investor
  • Las Vegas, NV
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Bill B.#2 1031 Exchanges Contributor
  • Investor
  • Las Vegas, NV
Replied Feb 2 2024, 12:29

If 3 unrelated tenants are allowed in 1 bedroom. I’d at least raise the rents that $100 to market or 25%, whichever is more. This is assuming you are sure you could rent it out quickly if they moved out. Explain to them that each of them is responsible for the entire rent even if 1 or two of them moves out. Do a complete application and background check on new guy. 

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Madeline Mercer
  • Rental Property Investor
  • Newark Nj
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Madeline Mercer
  • Rental Property Investor
  • Newark Nj
Replied Mar 2 2024, 15:50

I agree with BillB. in addition to, you must include in your new lease a requirement for additional tenants. I give guest 7 days visits afterwards they are in violation of their rental agreement and subject to eviction proceedings. No subletting allowed. any agreed upon additional tenants are subject to 100$ additional rent each adult (for wear and tear and water) they will be require to complete a background check at their cost of ______$. make certain the additional tenant knows the rent so the current tenants are not subletting and gaining financially. 

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