Hello everyone and hope all is well.
The tenant that signed the lease has her husband and brother listed as occupants. I did a site inspection and found another person at the house (brother's girlfriend). I explained what is listed on the lease in terms of having guests stay and that another option would be to add her as an occupant on the lease. What all I should do? I was thinking of raising the rent by $100.00., but not sure what if any percentage I should raise it?
Thoughts, advice, suggestions, ideas?
Thank you team!
If the lease your tenant currently signed doesn't mention an additional occupant fee, not sure you will be able to pull this off. Also charging rent on a per-person basis, is in a gray area for potentially violating the Fair Housing Act, as it might be discriminatory towards familia status. So be EXTRA careful if you are considering this.
You should absolutely make all occupants submit a rental application and go through your tenant screening process. What's the point of having only the lease signer provide a rental application, when it sounds like 3 other occupants will be calling this place home and should be responsible for rent, damages, and upholding lease terms.
My main concern is that total occupancy is under the limit I have set, that all occupants get a criminal check (require the tenant pay for this), and that the tenant understands that they must get your permission first (one strike, another brings heavy consequences). Agree you should not raise rent. Authorized occupants cannot be held responsible for rent or damages, need to be added as tenants for that to happen. We normally allow authorized occupants over tenants because it is less paperwork and they often aren't strong applicants anyhow, but something to consider, maybe plant the seed that are renewal they will need to be added as tenants with a one page application that will allow you to chase them down later if need be.
@Kaycee Wegener - When it is a married couple with a relative I don't have them go through the screening process. As @Michele Fischer mentioned they usually won't qualify. I do put them on the lease and stress they are responsible, but eviction fees for 3 people versus 1is also a consideration. I do agree that moving forward I will do a criminal background check on each person. Finding the 'perfect' tenant is also tough, I look for the first family to qualify and I don't make the screening process a walk in the park.
I'm not sure how to prove the new person is living there? Which would be a breach of lease which I would consider a reason for raising rent.
Thank you both for the feedback,
Breach of lease is a reason to get a new tenant, not a reason to raise rent. We do have some penalties built into our agreement, but it is a per occurrence, not a per month consequence. Like was mentioned earlier, don't want to be accused or found guilty of a fair housing violation.
I had a tenant move in a roommate once to help pay the rent. My tenant told me after the fact but I made sure she filled out an app so that I had her info for any damages.
I think it's a good idea to get their info but I didn't raise the rent.