Investor · Oak Park, MI · Member since 2014 · 299 posts · 47 votes
Hi guys,
It's been a few years since I had to look for a new renter, I'm strongly considering a couple, one make 45K, the other 60K, both with stellar credit reports (rent is $1,325). They have been together for one year and it's going to be the first time they live together, so it wouldn't be totally far off for them to realize that they're not compatible once they start living together and break up.
So how should I handle this? Should I just put the higher earner in the lease as being the one responsible for rent or have them both as being responsible? In the case that they have a fight and break up I can imagine the problems trying to collect half from both but if one is responsible I can see one leaving and the higher earner staying and keep paying while maybe trying to find a roommate.
Am I far off? How do you guys set up your contract with this situation?
Real Estate Agent · Southington, CT · Member since 2008 · 5k+ posts · 3k+ votes
10y
@Roy Gutierrez Don't overthink this. They both have good income and good credit so they both go on the lease. Explain to them that you only want one payment per month for the rent and that if the ship goes down they are both going down.
Good people with good credit will pay their rent even if they break up.
Sacramento, CA · Member since 2014 · 513 posts · 319 votes
10y
@Roy Gutierrez, Looks like consensus is clear: Put every person 18 years or older on the lease and make both parties responsible for monthly rent and whatever other expenses you charge them. I would also have them each qualify with income minimally 2.5 x the rent so rent will still get paid, no matter who leaves or stays..
Never accept large amounts of cash up front (this is assuming they have it and it's not just talk) People who do this are usually hiding something (poor credit, eviction, an illegal cash type business, etc) I mean if they have a year's worth of rent saved up, why are they renting from you and not buying? When collecting first month and security deposit, accept secured funds only - money order, cashier's check credit, debit that shows a paper trail. Holding deposits can be calculated on a per day basis, but I wouldn't do it for more than a week. If they pass it over, they forfeit it; if they end up moving in, apply it to the security deposit or rent. Check the laws in your state and city on what is allowed.
Be a proactive landlord by learning what is required of you as a landlord in your state. An experienced tenant who knows their rights is not necessarily a PITA, but can become one if they know the landlord is taking short cuts or worse is uninformed so educate yourself on exactly what is required of you.
I agree with @Sue Kelley on the advantages of doing a month to month over a lease, because it resets every 30 days.
Surprise, AZ · Member since 2016 · 58 posts · 20 votes
10y
@Roy Gutierrez I have had past renters that were married for 12 years and then got divorced will living in my rental. Don't be so fast to just single people (dating couples...) since America has a 55% fondness for getting divorced! lol As pointed out, all adults living in your rental need to be on the lease.
St Thomas, Ontario · Member since 2013 · 575 posts · 408 votes
10y
@Roy Gutierrez Generally last month's rent deposit is for the final month that they live in the unit. Note that this is not used for the final month of the initial lease term, as you suggest. The purpose of a last month's rent deposit is to minimise the financial losses to you in case the renter leaves without giving due notice. Allowing them to use the last month's rent for the last month of a one year lease leaves you bare in case they walk out without notice.
Thanks for sharing this situation @Roy Gutierrez. I am researching prior forums on boyfriend / girlfriend tenant issues to see if anything fits the scenario that I am about to post.
Thanks for sharing this situation @Roy Gutierrez. I am researching prior forums on boyfriend / girlfriend tenant issues to see if anything fits the scenario that I am about to post.
Good luck Jeff, I'v switched all my houses to Short Term rentals so no more issues like this for now at least!