ridiculously high amount of rent

ridiculously high amount of rent

Residential Real Estate Broker · Fort Wayne, IN · Member since 2014 · 171 posts · 116 votes

I have a small, one bedroom apartment that was filled by a property management company with a household of 4 ( 2 adults 2 children ).  Being a one bedroom 900 sq ft space I thought a household of 4 was a stretch but who am I to question a professional management company.

Two months ago the renters allowed another 4 people to move in, taking the total household size from 4 to 8 (now 4 adults and 4 children).  I filed for an eviction and it was granted but now the renters are offering to pay an extra 50% over the originally agreed upon rent if I let them live like this.

I hate the fact that each member of the household has 100 sq ft of space, I hate the fact that there is no privacy and I feel like that is no way to raise children however this is what they want and they are willing to pay for it.

What are the repercussions for creating a separate lease and allowing so many people to share such a tiny space?

On the upside, the monthly income from the building is going to jump to 8.8% of the original purchase price which is an insane return on investment.  I know I will likely have a new set of headaches in 4 months but at least I postpone those headaches until the winter months have passed.

What do you think, should I take the high rent and let them live with just 100 sq ft per person, should I go through with the eviction or are there other legal ramifications that I should be concerned about?

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Investor · Birmingham, AL · Member since 2016 · 446 posts · 305 votes
9y

There is no way they are living like that and not tearing up the unit.

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  • Real Estate Agent · Austin, TX · Member since 2014 · 636 posts · 486 votes
    9y
    Originally posted by @John Casmon:

    Jacob Pereira it's still NOT legal as a second bedroom is needed for the 4th adult (and additional kids). It says one person can use a non-bedroom (not including small children). Local regulations still apply, but to be crystal clear the 8 people in a one bedroom is not legal from a federal level.

    Hi John,

    I didn't look up the whole regulation nor did I research case law about the issue because I would never rent a property with fewer than 1 room per two people, but the way the regulation you quoted was written it does appear to allow multiple people to live in areas other than bedrooms. I agree it's a bit ambiguous, and maybe there is other wording that clarifies, but the way I read it, all they're saying is that they acknowledge that adults can live in areas other than bedrooms, and that kids can stay with parents. They do specifically say "a third person" but they don't exclude a fourth, fifth, or sixth, at least to my understanding.

    Not saying I'm right, necessarily, but the way the regulation you quoted is written, it doesn't say you can't house many people in a room, provided you have 50 ft per adult person after the first two. Heck, when I was in the Marines, we housed 70 people in a squad bay that was about 20x60, although I suspect that they may have been exempt from standard landlord rules.

  • John CasmonPro Member
    Cincinnati, OH · Member since 2013 · 1k+ posts · 1k+ votes
    9y

    I didn't go further in the research, but the fact that they called out a "third" person and not additional people shows the intent. It is ambiguous and has probably been clarified somewhere else, especially at the local level. Either way the OP is exposed if he allows the 8 tenants to stay in his 1-bedroom. 

  • Member since 2016 · 13k+ posts · 12k+ votes
    9y

    I would evict for the sake of the kids. The parents are unfit to have children and as emotionally difficult as it may be on the children it will be much more damaging spending their entire child hood  raised in their present environment. 

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