Adding tenant to lease
A tenant would like to add her boyfriend to the lease. I pay trash and sewage. Do I raise rent for the additional tenant? And should I add this person to the lease or simply approve them moving in?
While I suggest speaking with an attorney for the consequences of simply letting them move in, at the very least, you should screen the new tenant as you would for anyone else.
I'd say he has to pass same criteria and fork up an equal deposit (if that amount is legal). That way, if he's just a bum who wants to live for free or can't qualify somewhere on his own or doesn't have a job or whatever - you'll have screened him out. I'd put it in writing in a friendly way, but having it in writing gives you documentation in case you need to kick him out. Like, "Sure, no problem. He'll just need to apply and be approved with the same criteria as you, and pay a deposit equal to yours. Please be aware that your lease does say (whatever your lease says about limiting overnight guests for whatever period of time), so if you choose not to go ahead and put him on the lease, he won't be allowed to stay beyond ___________"
I wouldn't start a new one-year lease, though, in case they end up drama queens. Month to month agreements are just so much better than long leases, in my experience. You just never know when relationships might change or crazy relatives move in, etc., and it's just easier to end a month to month tenancy.
If she says she changed her mind, be ready for him to move in anyway and deal with that.
The good news is she's being honest, but this can also be bad news. It might mean she wants him on the lease because she's afraid he won't pay his share of the rent and she wants him to have to sign a document, hoping it will make him behave.
Maybe it will work out fabulously and he'll turn out to be a great guy. Just be ready in case he isn't. Been there many times.
@Kristopher Tursky You definitely want to put them through the same screening process as the current tenant. If they check out just create a simple addendum adding them to the lease.
When I add a tenant I do a criminal back ground check at very the least .
@James Galla I will reach out but it sounds like screening and deposit will be the path forward. Thank you!
@Sue K. Great advice, Sue! I thought it was a little weird.
I’ll dig in! Thanks!
@Michael Noto following your advice. Thanks!
@Billy Smith thanks for your input!
@Kristopher Tursky
Definitely screen the tenant. Unless you’re charging per room like a sublet, I wouldn’t raise rent but that’s me.
@David Campbell noted. Thank you!
Screen him just like a new tenant..... credit and background check......do addendum to lease.....rent stays the same.....deposit now applies to both (doesn't matter who doesnt the damage etc, the $$ gets deducted and they figure out if someone gets paid back or not)
And be prepared that if he doesn't pass, he will probably move in otherwise.....and be perfectly clear with the tenant what will happen if that occurs....
If the lease is month to month, you should just draft a new lease and reflect that accordingly. Maybe in the new lease, turn trash and sewage to them, however, one extra person should not raise the bill that much.
I had this exact situation happen to me. Like most everyone said, definitely do a credit/back ground check before you allow anyone on the lease. I had the same mid set as you, that since there would be an additional person in the unit = wear/tear and I also pay trash/water, so I did in fact raise their rent to offset the cost (which they had no problem with).
After doing my due diligence, I just created an addendum and added him to the M2M agreement.