Hi BiggerPockets! I'd like some advice.
I have an inherited tenant in one of my units. Let's call it Unit X, tenant 1 and 2. Looking through their lease, it shows both tenants 1 and 2 on the lease. However just recently I was talking to tenant 1 and I asked them about tenant 2. Tenant 1 said: "Oh tenant 2 doesnt live here anymore". However the lease clearly states tenants must inform landlords and file an occupancy addendum or they receive a $100 fine.
I was considering asking tenant 1 to sign an addendum to remove tenant 2 from the lease and make them the only person who has 'occupancy'. However, maybe its pointless. There doesn't appear to be any real reasons I should push it in this case. Only if they add a new person without updating occupancy is there a problem with evictions and liability. It looks like tenant 2 was added to the lease probably to be able to qualify but then left. However, tenant 1 is making rent no problems so far.
So Addend or not Addend?
I wouldn’t change it for two reasons. First, if there’s ever a problem collecting rent or any other money you’re owed, it’s one less person you can hold accountable. Second, and more importantly, you can’t legally just remove a tenant from a lease without that tenant’s knowledge/permission.