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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  • Multifamily Syndicator 路 Houston, TX 路 Member since 2016 路 1k+ posts 路 2k+ votes
    7y

    @Chris Allen Sure, their friend is going through a hard time. What struck me was the "few" months turning into a whole year. 

    Now, you definitely should treat their friend as a tenant regardless of what your current tenants are saying. 

    In addition, there should be a rent premium to the rent for him and his pet, as more people in the house more wear and tear and potential damage. Don't forget to take a deposit as well. 

    Oh, by the way, congratulations on the new acquisition! 馃帀馃帀馃帀

  • Flipper/Rehabber 路 Roanoke, VA 路 Member since 2018 路 67 posts 路 64 votes
    7y

    @Chris Allen. Absolutely make him sign a lease. Not only that but increase the deposit and the rent. The more the people and pets means additional wear and tear to the property plus an increase in utility bills.

  • Member since 2019 路 295 posts 路 159 votes
    7y

    @Chris Allen I allow it but I also charge 200$ extra per head and that鈥檚 added to the monthly rent .

  • Rental Property Investor 路 Clarksville, TN 路 Member since 2018 路 21 posts 路 8 votes
    7y

    @Chris Allen just like all the responses. Vet like normal. Bump monthly rent and I鈥檇 secure a non-refundable pet fee. Those are big dogs.

    Additionally, both parties are still collecting BAH w/dependents rate, so the cash flow shouldn鈥檛 be a problem. At least until the divorce is final.

    **Last resort, if the situation should get volatile w/nonpayment of rent contact the tenants chain of command. The military will get involved and ensure all gets hashed out as BAH is still being payed out biweekly.** My .02

  • Temple, TX 路 Member since 2018 路 307 posts 路 215 votes
    7y
    Thank you all for the great input, seems like there is definitely a common stance.
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