Allowing a guest to move in with Tenant?

Allowing a guest to move in with Tenant?

Temple, TX 路 Member since 2018 路 307 posts 路 215 votes

Background: Just closed on my first househack duplex where I inherited tenants. The tenants are a married military couple who had just extended another year prior to me closing the property. I have already talked with them and they are okay with signing a lease with me as long as they can still keep their current terms, i.e pets, rent, lease term, etc...

Problem: My tenants have a friend who is going through a divorce and wanted him and his dog to move in for a few months while he gets things figured out; I told them I am okay with this as long as he passes a background check. Now they are wanting him to stay there for the full year, as my tenants husband just got orders to ship out for a year and she will still be living in the property. She does not really want him added to the lease. 

Question: How should I handle this? Assuming the friend passes my screening; should I draft a new lease for my tenants and just add him to it? Should I draft a new lease for my tenants and just give a written agreement for a long term guest? Just add some sort of addendum for him or what? Also, since he also has a dog, which will make 3 total, tenant has 1 service dog and one "pet" dog, should I make the guest give a security deposit and a pet deposit/fee? I want to protect both myself and my tenants, so that if my tenants decide they dont want him there anymore, he has very limited "rights" to the property, while also making sure I am protected.  

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Real Estate Broker 路 Northeast PA 路 Member since 2017 路 2k+ posts 路 3k+ votes
7y

@Chris Allen,

The scenario you describe could make a Hallmark movie:  young married military couple living happily in TX, husband gets deployed to a far-off land. The wife and husband's 'close friend' is in the midst of a painful divorce.  Friend moves in and cohabitates with the now lonely military spouse.  The friend's separated (and angry) wife finds out about the situation, and BOOM!

IDK, it might make an interesting (and predictable) movie, but it would suck as a real-life situation that YOU will have to deal with. 

You want drama? Go see a play or a Hallmark movie.

Good luck.

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  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker 路 Cody, WY 路 Member since 2010 路 28k+ posts 路 41k+ votes
    7y

    Screen him. If he passes, make him sign the lease. If the original tenant doesn't want him on the lease then don't let him stay there.

    I wouldn't allow it without a significant increase to the deposit (at least 50%) and an increase to the monthly rent. The new guy benefits from renting something cheap. The current tenants benefit by lowering their monthly rent payment even though the government is paying them the same housing allowance. You should benefit from this, as well.

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  • Investor 路 Hyattsville, MD 路 Member since 2012 路 822 posts 路 441 votes
    7y

    I'll note that adding the third tenant means the house is now subject to additional wear and tear from 3 dogs!!! 2 seems plenty enough in my eyes. You could easily deny this additional tenant because it exceeds the amount of reasonable animals that reside in the house and will cause you more maintenance move-out repair headaches. Military tenants housing allowance pays for their rent cost so they are not in financial hardship paying your rent so they don't have to take in this guest. You're gonna pay in the form of new carpets, poop in yards/landscaping repairs and additional damages from pets that the existing security deposit might not cover in entirety. 50% increase in deposit seems necessary as well as a pet rent for the extra pet ($35-40/month) and increased overall rent terms. Your washer/dryer, household appliances, WH, fixtures will all see higher use, so you'll need to be compensated for these items which you will have to replace sooner. There is no reason you need to be doing them a favor, modifying your existing lease (which you have no obligation to do) without you being compensated adequately for your eventual higher wear and tear that you will be on the hook for.

  • Real Estate Broker 路 Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH 路 Member since 2013 路 31k+ posts 路 20k+ votes
    7y
    Originally posted by @Chris Allen:

    Background: Just closed on my first househack duplex where I inherited tenants. The tenants are a married military couple who had just extended another year prior to me closing the property. I have already talked with them and they are okay with signing a lease with me as long as they can still keep their current terms, i.e pets, rent, lease term, etc...

    Problem: My tenants have a friend who is going through a divorce and wanted him and his dog to move in for a few months while he gets things figured out; I told them I am okay with this as long as he passes a background check. Now they are wanting him to stay there for the full year, as my tenants husband just got orders to ship out for a year and she will still be living in the property. She does not really want him added to the lease. 

    Question: How should I handle this? Assuming the friend passes my screening; should I draft a new lease for my tenants and just add him to it? Should I draft a new lease for my tenants and just give a written agreement for a long term guest? Just add some sort of addendum for him or what? Also, since he also has a dog, which will make 3 total, tenant has 1 service dog and one "pet" dog, should I make the guest give a security deposit and a pet deposit/fee? I want to protect both myself and my tenants, so that if my tenants decide they dont want him there anymore, he has very limited "rights" to the property, while also making sure I am protected.  

     Needs to be treated same as any other tenant. He jumps through same hoops as a regular tenant and signs a lease just like a regular tenant as that's exactly what he is.....A regular tenant.

  • Contractor 路 Coachella Valley, CA 路 Member since 2017 路 252 posts 路 176 votes
    7y

    I ran into this same dilemma with a property of mine.  I did exactly what was stated above.  I required the additional tenant to apply the same way as any other prospective tenant would.  Application, background & credit check, references ect.  However I did not require an additional security deposit although I should have.  

    However, be careful with this situation.  With one military member shipping out and the other going through a divorce, things could get hairy.  The Service Members Civil Relief act of 1974 allows military tenants to break a lease regardless of expiration date if they are on official military mobilization orders.  Additionally, throwing in the complications of a divorce could further complicate the situation.  Just my $.02

  • Theresa HarrisPro Member
    Member since 2019 路 15k+ posts 路 11k+ votes
    7y

    @Chris Allen  I don't know how the military benefits work ie if they show a copy of the lease to get money for housing; but I would add them to the lease. What happens if the current tenants decide to move their guest doesn't want to?

  • Real Estate Broker 路 Northeast PA 路 Member since 2017 路 2k+ posts 路 3k+ votes
    7y

    @Chris Allen,

    The scenario you describe could make a Hallmark movie:  young married military couple living happily in TX, husband gets deployed to a far-off land. The wife and husband's 'close friend' is in the midst of a painful divorce.  Friend moves in and cohabitates with the now lonely military spouse.  The friend's separated (and angry) wife finds out about the situation, and BOOM!

    IDK, it might make an interesting (and predictable) movie, but it would suck as a real-life situation that YOU will have to deal with. 

    You want drama? Go see a play or a Hallmark movie.

    Good luck.

  • Temple, TX 路 Member since 2018 路 307 posts 路 215 votes
    7y

    Thank yall for the input! I am not quite as worried about the wear and tear on carpet and things like that, when they move out I am already planning on flipping that unit; new flooring, paint, fixtures, fixtures, etc... but obviously I don't want the property to become in any worse condition, so I guess a significant deposit increase would be good to have. I am aware that they can break lease anytime with notice and papers, but I am okay with that, just means I can flip the unit sooner and raise rents more, but having another person in the unit could definitely make things more difficult if things go south. 

    @Marc Winter I should definitely pitch this idea to Hallmark, I could use the pitch money to go towards a new property haha. 

  • Rental Property Investor 路 Closter, NJ 路 Member since 2015 路 884 posts 路 722 votes
    7y

    Do not add this "guest" to the Lease. Create an Additional Occupant Addendum. Run your usual credit and background checks. State in the Addendum that he is NOT a Tenant, and when the actual Tenant's lease expires, and they vacate, he must also vacate. 

    To me this doesn't sound right. The military is paying the rent for husband and wife. They are taking advantage letting this guy move in for free at military expense.

    I would deny the request.

  • Temple, TX 路 Member since 2018 路 307 posts 路 215 votes
    7y

    @Judy Parker Can you explain how you feel they are taking advantage of him in this situation? They were wanting the friend to stay there for a couple of months originally so he could get back on his feet after the divorce. Now that my tenant's husband will be shipping out, they want this guest to stay for the remainder of their current lease so my tenant is not living by herself while her husband is deployed. Also, by putting a guest in as an addendum, would I still be able to collect a pet deposit/fee from this person as well as potentially request a monthly pet fee? 

  • Theresa HarrisPro Member
    Member since 2019 路 15k+ posts 路 11k+ votes
    7y

    @Chris Allen  I'm going to guess that Judy believes the couple is getting money from the military for housing and they will continue to get the same amount even though they aren't paying the same amount in rent.

  • Temple, TX 路 Member since 2018 路 307 posts 路 215 votes
    7y

    @Theresa Harris I guess that does make sense, but either way they are both in a hard situation, one going through a divorce, and one's spouse is leaving for a year. If two parties can prosper from a bad situation why not?

  • Rental Property Investor 路 Closter, NJ 路 Member since 2015 路 884 posts 路 722 votes
    7y

    Check with the military. See if they agree to continue paying rent on that unit while it is now being occupied by someone who is not in the military? I tend to think it may be similar to the Housing Authority paying rent for welfare tenants. Housing Authority specifically states who is permitted to live in the unit. Unauthorized occupants are cause for eviction and termination of benefits.

  • Temple, TX 路 Member since 2018 路 307 posts 路 215 votes
    7y

    @Judy Parker But it will still be a military spouse living there, so the housing allowance shouldn't change. And the friend going through a divorce is also military, so I can't imagine the pay would be an issue. But like you stated for the addendum, would I still be able to request a deposit if I went this route? 

  • Rental Property Investor 路 Concord, GA 路 Member since 2015 路 3k+ posts 路 3k+ votes
    7y

    The military provides a housing allowance that varies based on regional costs. It is not apartment or house specific. ie, if the BAH (basic allowance, housing) is $1300. It doesn't matter whether you rent a place for $700 or $2500. You still get $1300. If the service member lives in base housing, they get the housing and not the BAH. So I wouldn't let that factor into the decision. I would be very reluctant to agree to accept this additional person due to reasons others have stated.

  • Theresa HarrisPro Member
    Member since 2019 路 15k+ posts 路 11k+ votes
    7y
    Originally posted by @Chris Allen:

    @Theresa Harris I guess that does make sense, but either way they are both in a hard situation, one going through a divorce, and one's spouse is leaving for a year. If two parties can prosper from a bad situation why not?

    As long as they pass your criteria and you aren't getting paid directly by any organization for the rent, I would rent to them.  The 3 dogs in the unit is another question.  It is your house, so do what you are comfortable with.  Is the deposit non-refundable and for all animals or is it per animal (notice I said animal and not pet)? 

  • Member since 2019 路 32 posts 路 22 votes
    7y

    @Chris Allen imo this is somewhere land owners get to professional. No reason to make a big deal about a tenant helping a friend. Just get it in writing saying they live there and your tenants accept responsibility for them incase of damages (they can say in court well that guy did it, he's not here I'm the one being sued) and get away with it. Just make sure your tenants know they are liable for any damages or disturbances he causes.

  • Temple, TX 路 Member since 2018 路 307 posts 路 215 votes
    7y

    @Zack Howard So would you say just sign the new contract with them and write him in as an accepted guest via addendum and that the tenants are responsible for him?  Would I not worry about a deposit from the friend? My tenants deposit is only $500, and with this guest there will be three dogs total, two of which are a husky and an Akita... so I would think the only right way to get a security from someone who is bringing another animal into the property and will be staying there an entire year would be to just add him onto the lease? 

  • Member since 2019 路 32 posts 路 22 votes
    7y

    @Chris Allen I charge a pet deposit nomatter what. I wouldn't do a new contract of everything, just kind of an add-on/new addition saying "as the main tenants you here by accept liability for this guest____, his animals, and any and all legal issues that could arise from your allowance of said guests". if you really want to you could make them do a new lease depending the laws in your area and include him but I personally understand helping a buddy of family member out and want to make my tenant happy any way I can. I allow it but my butt needs covered nomatter what may arise.

  • Temple, TX 路 Member since 2018 路 307 posts 路 215 votes
    7y

    @Zack Howard Yeah, I understand that as well, that's why I am okay with him staying, just want to do it right and make sure my tenants are protected as well as myself. But I am doing a new lease anyways, because they are still under the previous lease since I inherited them with the purchase of this property and would prefer for them to be on a my lease. They have already agreed to this and said they would sign as long as I don't change anything major; so adding this person to the new lease wouldn't be difficult, especially if he really is staying for a full year. 

  • Real Estate Agent 路 Southington, CT 路 Member since 2008 路 5k+ posts 路 3k+ votes
    7y

    Tell your current tenants that the guest needs to be added to the lease if he wants to stay there. If not, he is not permitted to stay there for an extended period. If they balk at that there is probably a reason that you are unaware of as to why they don't want him on the lease. They know him better than you do. 

  • Saint Joseph, MO 路 Member since 2018 路 401 posts 路 244 votes
    7y

    @Theresa Harris it鈥檚 called Base Allowance for Housing(Bah) when you live off base, you get a certain rate based on zip code and your rank. It鈥檚 meant to cover your rent or mortgage along with the other costs of housing. They don鈥檛 reduce it if you have a roommate move in.

  • Real Estate Agent 路 Hoffman Estates, IL 路 Member since 2017 路 90 posts 路 68 votes
    7y

    @Chris Allen

    I would have them pass through the same vetting process and add the below addendum.

    https://eviction247.com/index.php/pages/download/24

    If the rent is at or above market and what my short term goals are, I might not increase the rent. Rent is definitely going up if it is below market.

  • Temple, TX 路 Member since 2018 路 307 posts 路 215 votes
    7y

    @Haseeb M. Thank you. 

  • Member since 2019 路 111 posts 路 36 votes
    7y

    Treat him as you treated the other tenants. Screen him and make him sign a lease. 

  • Rental Property Investor 路 Los Angeles, CA 路 Member since 2019 路 112 posts 路 38 votes
    7y

    @Chris Allen Hi here's what I would do but in LA we have rent control in its sucks big time but if your allowed To do this I would do lease to be renewed every 3 months That way it's some kind of compromise for both the lies to see how it's working out and I hope you're increasing the rent then you're not letting it just be a sublet

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