Include third person roommate in lease?

Question

We are considering renting to a couple who also have a friend they want to have live with them to help cover the rent. The couple together make exactly the 3x rent that we require. The third person makes enough to bring this up to over 5x rent. This third person had some drug problems and an eviction but seems to have been doing well for the past year. He spoke very highly of his friends, says he understands if I don't want to rent to him but asked that I not hold it against the couple. I was considering just putting the couple on the lease and letting them have the guy live with them but I think things could get sticky if for some reason they were to leave or have problems and then I have a third person living in the house with no lease. Ideas? This is in Virginia.

Shera Gregory · Answer

Thanks @Phillip Syrios @Cal C. and @Marcia Maynard for your comments. These were all helpful in my follow-up discussions with the potential roommate/tenant. I will make sure that he is on the lease. They have all agreed to a deposit equal to two months rent. I found out that the roommate has been clean for about 2 1/2 years (the one year period was how long has has been on the current job). He has a good support system in place including monthly counseling sessions with drug testing. His current employer (who is aware of the full situation) is also a landlord so he understands the concerns I might have and spoke very highly of this individual. Nothing is ever 100% but I feel that we have a good shot at helping a deserving person. That is one thing that I enjoy about our role as a landlord -- we are not just a big corporation with strict criteria that can never bend.

Cal C. · Answer

If you tacitly approve of him being there, that can be interpreted as legal approval for residency, but possibly not for seeking a judgement against him.   If the couple moves out and you knew he lived there prior to that then he very likely has tenant rights, that will vary by jurisdiction but I'd say the vast majority will treat him as a tenant.

As @Phillip Syrios points out this doesn't seem to be a good situation.  If you do take them, make sure all three are on the lease.  To reiterate another of Phillip's points.  If they are 18 or over then they go on the lease.  I usually have the names of the under 18s on the lease also, but as residents not tenants.

Phillip Syrios · Answer

My advise is to have everyone over 18 on the lease. There is almost no benefit to let him live there and not put him on the lease. Usually when we rent to someone we make sure everyone (or every couple) on the lease can qualify on their own. You may want to see if the friend can get a cosigner. Overall this type of situation would make me nervous and I would not be excited about this rental group.

Then again I don't know your market and that always effects things a lot, but in my situation I would rather wait until I found a renter I had less doubts about.

Then again I don't know your market and that always effects things a lot, but in my situation I would rather wait until I found a renter I had less doubts about.

Marcia Maynard · Answer

@Shera Gregory Just a few thoughts to add.

1. One year of sobriety is not enough for him not to be high risk. If you accept him as a tenant, require an additional security deposit. Talk with him about his past and his risk for relapse. See how candid he is. What is he doing to reduce his risk of relapse? Make sure he made full restitution and amends to the previous landlord for that eviction before renting to him. Do a thorough background check.

2. Has this couple and this single guy shared housing before? Do they have the right temperament to share housing? Have they thought this through? Do they have a plan as to what they would do if it didn't work out?

3. It is possible to have a successful tenancy with someone who has unfavorable rental history or legal history. We have taken on people with a felony or eviction, but we do so with eyes wide open. There are some deserving people who have turned their life around and need a break, as they are facing an uphill battle with their past.  Just make you are clear about your expectations and about what needs to happen from this point forward. Compensate yourself adequately for the extra risk (for example, ask for higher rent, additional security deposit, and/or an additional move in fee.)

4. Don't be surprised if they want to install keyed locking doorknobs on their bedroom doors. Not a deal breaker, but something to be aware of. We see this when there are essentially two different parties living in the same residence.

Include third person roommate in lease?

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