Rental Property Investor · Oakland, CA · Member since 2017 · 32 posts · 19 votes
I have a tenant in good standing who has a good job, pays on time, is responsive and responsible. He broke up with his partner (happens) and has a new partner who is moving in. He was very upfront about this and introduced her to me to do an application/screening.
Credit came back with 2 delinquent accounts. I don't rule out solely on bad credit but I tend to focus on delinquent payments. And, much bigger issue, she has a past eviction in the same town as my property she's moving into (Northern California). So, bad tenant I would have never rented to if she was applying on her own.
Not sure the best way to proceed. What do I communicate to the tenant? Is it worth losing a good tenant mid-lease? I don't even know what I'm allowed to do here. I do know he can cover the rent on his own. Is it better to have her on the lease or not?
Eviction was filed one year ago, judgement was 11 months ago.
This is very recent. Unlikely she has changed.
I would hesitate at even putting her on the lease. He could later argue he is only responsible for half the rent and you are stuck trying to collect from a dead beat. Tell him that he is 100% responsible and maybe even get some type of risk mitigation deposit if local laws allow it.
Also remember you can't share details of her financial situation with him without her approval. You can deny or tell him there are negatives that require certain actions, but specifics can only be shared with her permission.
You are not required by law to accept her in the property. If they got married, you would be required, but at this point she is just a roommate.
I wouldn't worry too much her past, unless she was evicted for an egregious reason. What was the reason for the eviction? How long ago was it? Was full restitution made to the previous landlord? What was the reason behind the poor credit history? What is she doing to improve her credit history and pay her debts? Find out the circumstances that led to her past problems and what she has done since. It's quite possible to work with this kind of situation and save the tenancy.
We accept people who have had one eviction in their past, but with conditions. Conditions such as requiring a higher security deposit to cover our risk. If a person still owes money to a previous landlord or utility company, we require the person to pay off that debt before we rent to them. You have a chance to make a former landlord happy! If she is in debt of $1000 or more, make sure she is in a payment plan with the creditor and current with it.
We also require a higher security deposit to cover our increased risk. Your current tenant may learn something about his new flame that he didn't know before. Don't give him any details from the confidential background check and credit report. He will need to find out about it from her. You can speak in general terms, such as "Based on the results of her background check and credit report, we would need an additional security deposit of $XXX.XX to approve her move-in."
Is the previous partner's name still on the lease? It should have been removed and the terms adjusted as necessary. It's easy to remove or add people to a rental agreement at any time if all parties agree to it. Make sure all adults who occupy the unit are listed as "jointly and severally" liable. Your "good tenant" will still be held accountable for the terms of the rental agreement, so there's no reason to believe he will suddenly stop doing anything different.
When was the eviction? If she's moving in with her partner, keep the lease in his name so he is responsible for the rent. Put her name down as an occupant.
Eviction was filed one year ago, judgement was 11 months ago.
This is very recent. Unlikely she has changed.
I would hesitate at even putting her on the lease. He could later argue he is only responsible for half the rent and you are stuck trying to collect from a dead beat. Tell him that he is 100% responsible and maybe even get some type of risk mitigation deposit if local laws allow it.
Also remember you can't share details of her financial situation with him without her approval. You can deny or tell him there are negatives that require certain actions, but specifics can only be shared with her permission.
You are not required by law to accept her in the property. If they got married, you would be required, but at this point she is just a roommate.
Do you have screening standards, any at all that you have you accept this person as a tenant. Would she be accepted as a tenant if the two of them had originally applied together. When your tenant moves out would you be OK with her staying or will you be forced to evict. Ignoring your own screening standards is a major mistake simply because a existing tenant wants to move in some unknown person.
I would tell your tenant that you will release him from his lease provided he pay the rent till a new tenant takes over and he must cover your costs to find that tenant.
I personally have screening standards and she would definatly not pass. I do not know of any landlords that would knowingly accept a applicant with a eviction less that one year old. Imagine the type of person she must be and the problems she is likely to present....NO thanks.
Accountant · Tulsa, OK · Member since 2018 · 312 posts · 349 votes
7y
@Eli Altman stick to your screening standards, if your normal standards say you wouldn't rent to someone with past evections (or evictions within X number of years) then pass on it. Inform your current tenant that she did not pass your screening and move on. Be sure to keep an eye out for him moving her in anyways. If he leaves, he leaves, but it's better (and cheaper) than getting stuck with an eviction.
Rental Property Investor · Oakland, CA · Member since 2017 · 32 posts · 19 votes
7y
ok, so now i'm hearing two different things. one one hand i'm hearing to not put her on the lease and require an additional security deposit along with an addendum stating that he is solely responsible as a tenant. on the other hand i'm hearing that i should keep with my existing leasing standards and deny her.
i'm concerned that denying her will create more trouble than it's worth. i could have a bad situation on my hands immediately in that case. with additional deposit and a lease addendum stating that my existing tenant is the only party on the lease and that she is an "other occupant," i keep my existing tenant happy and have additional risk mitigation. i guess it comes down to if she has any legal standing w/r/t being a tenant and staying in the unit without my primary tenant.
Investor · San Diego, CA · Member since 2015 · 435 posts · 421 votes
7y
Whether she's on the lease or not, you'd have to evict her when she drives him out of the apartment and is left sitting in it, not paying you rent. Honestly, I'd tell him you don't want her because of her bad credit and recent eviction. So tell him you're not renewing, and get a better tenant. You'd be doing him a favor. He may not know any of this about her.
Real Estate Broker · Cleveland, OH · Member since 2017 · 719 posts · 658 votes
7y
If she's just a roommate - he might find someone to help pay rent.
If she's his girlfriend, you're expecting him to move out.
Since he's a good tenant, why start all that fuss because of her bad background?
Sign an addendum that she's not qualified to rent without him and is considered as an occupant only during his tenancy. Because there is additional risks for the landlord, you require last month rent to be deposited before she moves in.
If they'd applied both from start, you could deny both of them. Now it's not a good time to part with already good Tenant because of his choice of a g/f. What if he wants to marry her? He'd be responsible anyway
Unless you have aLready bunch of qualified Tenants, I wouldn't rock the boat.
Fort Collins, CO · Member since 2019 · 185 posts · 61 votes
7y
@Eli Altman It is important to be upfront and transparent about why you are putting her down just as an occupant instead of on the lease and you need to make your current tenant aware of the situation. You can easily explain your policies and say she passed part of the background check etc., but you were concerned about her past evictions. Hopefully, this helps!
Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
7y
Tell him she doesnt pass my screening criteria and let him sit on that first, say I need to give this some thought. The request may be withdrawn or delayed. If it isnt I agree that she needs to pay the judgements for consideration. She s probably at the apartment now anyway.
If she is only an occupant that may be better if there is a future dispute from a possession of the apartment standpoint. I dont know. Financially It is not as good.
Milford, CT · Member since 2014 · 13 posts · 6 votes
7y
I didn't see if this was cleared up, but is he paying the rent by himself now? If so, I don't see how her past will affect him continuing to pay rent. I've lived with girlfriend's who had low income and bad credit but it didn't matter because I paid the rent anyway and anything they contributed was just gravy. Don't over think it. It's not worth losing a good tenant to piss him off for not letting his new girlfriend move in.
Great Falls, MT · Member since 2017 · 97 posts · 172 votes
7y
@Eli Altman
Personally, I do not rent to roommates. They are not a protected class, and they are typically too much drama. Basically, these two are roommates. So, I wouldn’t allow him to move her in. If this costs me a tenant; so be it. Not worth the drama.
If you are okay with roommates; I would do the following:
1. Get twice the deposit from the current tenant. He can collect it from the partner on the back-end, but this ensures that you have only accepted money from the person on the lease.
2. Do NOT put the new partner on the lease.
3. Make it very clear that your tenant is solely responsible for the rent and any damages (regardless of who caused them). Also, make it clear that dividing up the deposit, whenever and however that occurs, is between them. AND no portion will be returned until all parties vacate the property.
Also consider that the chances of this relationship also ending is high. Do you want to set the precedent that he can move his “partner of the week” in any time he wants? It’s added stress and work for you.
As you have noted you are getting advice both ways. Some of us know when to avoid risk others prefer to toss the dice and gamble. My guess is you are a gambler. Since it does not matter to any of us what you do why not let him take her in and report back to us if/when it goes south. Just for laughs.
My vote is for your present tenant moving out within the year and you will end up having to evict her. Since she already has one eviction, and therefor nothing to lose, she will not likely leave voluntarily.
Rental Property Investor · Indiana...mostly · Member since 2019 · 468 posts · 245 votes
7y
I agree with @Rob Hoinsky based on your statement that this is a tenant in "good standing who has a good job, pays on time, is responsive and responsible" and "I do know he can cover the rent on his own."
Normally I'd want the new adult to be on the lease as the more adults who are severally and jointly liable the better it seems for me, but maybe not in this case. I'm curious why she was evicted....I rent to folks with bankruptcy but evictions are another matter...