Renter has more people in house then original lease agreement

General Landlording & Rental Properties
7yFollow

Renter has more people in house then original lease agreement

Eric Holm
Member since 2019 · 3 posts · 0 votes

I rented a 2 bedroom, 1&1/2 bath duplex to single mom and daughter 3 1/2 years ago for 975 a month. She is now on a month by month rental agreement. Last Sept, her dad and and an invalid man he cares for moved in.

It was to be a temporary situation while on a waiting list for low income senior housing. I told renter to pay 20.00 more per month for added water and septic. Total then was 995.   Im out of the area for 8 months a out of the year and did not keep up with what my market value is supposed to be. It is 1,550 per month per unit.... a place identical to mine. Currently, The dad and invalid are still there. October 1, I raised the rent to 1,045.  And now, I find out a boyfriend and his child are also there. The dad told me that it too is just temporary til the end of the month when the boyfriend will move into his mother’s winter house somewhere nearby.  I’m planning to send the renter notice to comply within 30 days to have no more than 4 people maximum living there.  And since our original lease agreement was a single mom and daughter then come December 1 , if 4 people are living there,I will be raising the rent again closer to market value.  Does anyone see a problem with me doing this?  What would you do?

0Reply
28 views

Most Popular Reply

Marcia Maynard
Investor · Vancouver, WA · Member since 2013 · 3k+ posts · 4k+ votes
7y

It is not uncommon for tenants to allow other people into their homes to stay, for the short term or for the long term.
That's why a solid rental agreement with clauses that cover Occupancy, Guests, and Unauthorized Occupants is essential.
I would begin with a conversation with the tenant of record about your concerns and encourage voluntary compliance with the terms of the rental agreement, provided your rental agreement covers such.  You can also serve a Notice to Comply (or the equivalent).

Two persons per bedroom is reasonable. HUD allows two per bedroom plus one. If you pay for utilities, you would be justified in charging a per person utility fee, as usage would be greater. Decide how much you want to charge and check the landlord-tenant laws for your jurisdiction as to how often you can raise rent and by what percentage.

The father and the man he cares for are essentially your tenants now (in most jurisdictions), as they have stayed long enough to establish residency (more than 30 days), and you knew they were still living there and sanctioned it by accepting the extra utility money. The original tenant may be unaware that they may have tenant rights now equal to her own.

Do you know how long ago the boyfriend and his child moved in? Has it been more than a month? If not, are they still within the time frame to be considered guests? Or have they too established residency?  Better get them out before they do.

Bottom line. It's your property, but their home. Tread carefully. Everything's negotiable, start there and try for a win-win. If unsuccessful, then proceed with legal notices. The original tenant needs to do what she can to comply with the terms of your rental agreement or risk losing her home. With a M2M rental agreement, you have a strong position. Good luck!

2Reply
See this reply in the discussion

9 Replies

Jump to latestLatest
  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    7y

    Give them notice.  Tell them the two other people (boyfriend and kid) cannot move in as it exceeds the occupancy for a 2 bedroom home. At a minimum you are looking at 4 bedrooms (assuming the boyfriend is the daughter's those two have one room, the kid has another, the woman and dad in a third and the other gentleman in a 4th.

    As for the dad and other gentleman, tell them they have also outstayed their welcome as it has been over a year and they need to find alternative accommodation. Tell them they have until the end of the month to get it sorted or they can find a 4 bedroom place to move to.

    1Reply
  • Eric Holm
    OP
    Member since 2019 · 3 posts · 0 votes
    7y

    Thanks that is what I was thinking to just needed someone to agree with me.

    Thanks Eric 

    0Reply
  • Jeshua Patrick
    Rental Property Investor · Charlotte, NC · Member since 2017 · 298 posts · 232 votes
    7y

    @Eric Holm does your lease clearly state the maximum number of occupants and a requirement for additional tenants to apply prior to move in? If so, issue the appropriate notice to cure and if they don’t file an unlawful retainer against them for the boyfriend and his +1. I would consult with an attorney regarding the dad and invalid as you knowingly allowed them to stay in exchange for a slight increase in rent. This may cause the state to treat it as a month-to-month and require you to issue them the appropriate notice of non-renewal before starting eviction proceedings. Also, your state may require you to evict all the occupants simultaneously.

    1Reply
  • Marcia Maynard
    Investor · Vancouver, WA · Member since 2013 · 3k+ posts · 4k+ votes
    7y

    It is not uncommon for tenants to allow other people into their homes to stay, for the short term or for the long term.
    That's why a solid rental agreement with clauses that cover Occupancy, Guests, and Unauthorized Occupants is essential.
    I would begin with a conversation with the tenant of record about your concerns and encourage voluntary compliance with the terms of the rental agreement, provided your rental agreement covers such.  You can also serve a Notice to Comply (or the equivalent).

    Two persons per bedroom is reasonable. HUD allows two per bedroom plus one. If you pay for utilities, you would be justified in charging a per person utility fee, as usage would be greater. Decide how much you want to charge and check the landlord-tenant laws for your jurisdiction as to how often you can raise rent and by what percentage.

    The father and the man he cares for are essentially your tenants now (in most jurisdictions), as they have stayed long enough to establish residency (more than 30 days), and you knew they were still living there and sanctioned it by accepting the extra utility money. The original tenant may be unaware that they may have tenant rights now equal to her own.

    Do you know how long ago the boyfriend and his child moved in? Has it been more than a month? If not, are they still within the time frame to be considered guests? Or have they too established residency?  Better get them out before they do.

    Bottom line. It's your property, but their home. Tread carefully. Everything's negotiable, start there and try for a win-win. If unsuccessful, then proceed with legal notices. The original tenant needs to do what she can to comply with the terms of your rental agreement or risk losing her home. With a M2M rental agreement, you have a strong position. Good luck!

    2Reply
  • Jonathan GreeneBusiness Member
    Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
    7y

    I always lead with occupancy laws for the city or town based on the bedrooms so it's off of me and not just focused on the lease. It's always hard with overoccupancy, but it is very common. I try to think of all the good possibilities when a situation like this arises, but it's harder to know if you aren't local. Like, since the dad moved in does the original tenant have to take care of him more? And if so, might it help the upkeep (not the wear and tear, that is surely aggravated by more people) to have this new boyfriend there? Sometimes when a tenant has more people we have a knee-jerk reaction as landlords that it can't be good, but once in a while, that new tenant may be better than the old tenant and may provide more help which means less calls and less maintenance. Of course, they could be worse and make it more of a sh*tshow, but it's at least worth seeing if there is anything positive about it. But in the end, the occupancy is too high and a hazard.

    [email protected]Podcast Guest on Show BiggerPockets Daily 667: 5 Amazing Benefits Multifamily Investments Offer (That Single Family Homes Don’t) by Gino Barbaro
    Zen and the Art of Real Estate Investing59 Reviews
    WebsiteView Page
    1Reply
  • Jermell Shavers
    Member since 2019 · 295 posts · 159 votes
    7y

    @Eric Holm These are cockroaches hit them with above market rent or charge per head. Turn a negative into a positive get full market rent plus more that’s what my friend does normally he gets 850 but extra people move in it’s the hood LBVS he gets 1350 a month. These people don’t even complain they just pay regardless it amazes me but he tells me you won’t find a good tenant and they will keep doing this he just charges more

    1Reply
  • Judy Parker
    Rental Property Investor · Closter, NJ · Member since 2015 · 884 posts · 722 votes
    7y

    Send the Tenant a norice to Cease. You have an overcrowding situation. All unauthorized occupants must vacate immediately. Then send a Notice to Quit and file for eviction.

    Since you did nothing about it, the Tenant is taking advantage of you, and using your house as a Flop House. Good luck getting rid of them.

    FYI, my Leases state a maximum number of occupants. And each unauthorized person must first be vetted (credit and background checks). And I charge an extra $150.00/month, per person for each of the additional occupants.

    1Reply
  • Eric Holm
    OP
    Member since 2019 · 3 posts · 0 votes
    7y

    Thank you all for your advice,  the tenant responded to my notice and said that the boyfriend and kid will be  moving out this weekend.  

    Thanks Eric 

    0Reply
  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    7y

    @Eric Holm

    You're still making a mistake.

    $500 below market is costing you $6,000 a year. If you want to give away $6,000 a year, I know some very deserving charities that could use the help.

    You need to get rid of all of these occupants ASAP, clean the place up, and rent at market level.

    If you rent a $1,000 unit for $700, you end up with tenants that can barely afford $700 and they're more likely to treat it like a $600 rental than a $1,000 rental. It's one of the most common mistakes made by Landlords.

    The DIY Landlord Book4.7243 Reviews
    WebsiteView Page
    1Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free