Rental Property Investor · Chattanooga, TN · Member since 2018 · 7 posts · 0 votes
About to start renting our current home after our new home is built. We've determined that for our 4 bedroom, 2 bath house we can get around $1500 in rent in our area. We've had some college girls, referred by our babysitter, express interest in renting. It makes sense to me that at a certain number of tenants the rent should increase, but I'm not sure if this is reasonable or common. For instance, if we have 3 tenants they rent at $1500, but every tenant thereafter increases rent by $250/tenant or something of the sort. Is this a common practice? If so, how have you seen this structured/how have you personally done this?
Portland, WA · Member since 2018 · 8 posts · 1 vote
8y
Usually a standard lease IE: California Apartment Association Standard Lease is pretty bullet proof.
Within the lease is a blank line for number of tenants. You would fill in 3 tenants and it continues to state "without written prior consent of the landlord". You would fill out a rental agreement addendum stating that you give prior consent "additional tenants $250 per occupant; not to exceed 5 tenants" (for example).
Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
8y
You are renting space and can run afoul of fair housing laws this way if this is a single family not rooms for rent. For students even if they sign one lease a way to get around this is to set occupancy limits of 1 /bedroom. If they have fewer students then the number of bedrooms I have locked off a room and this can motivate them to find the extra person but only if it benefits them. for example $1500 for 3, $1700 for 4. Keep in mind this doesnt always work as thwy sometimes just pick the lock. Also if you pay any consumption related utilities you can justify some increase by occupancy level but it is better to just have them pay utilities. Always set occupancy limits for students. Also check for unrelated persons ordinances on your area.