Boyfriend and Girlfriend tenants...ugggghhhh

General Landlording & Rental Properties
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Boyfriend and Girlfriend tenants...ugggghhhh

Shane Myers
Member since 2018 · 4 posts · 2 votes

They want to use both incomes to qualify for the house and neither one by themselves make enough to rent. So if there is a breakup...then what. I know even a married couple can break up, and a single renter can fall on hard times. 

Now i have a boyfriend and girlfriend that want to rent with another boyfriend and girlfriend ( 2 couples) in my 3 bed 2 bath. 

Last time i had this situation they split about 6 months into a lease and i did a early lease termination with her. 

BUT i am seeing this very often now. Call me old fashioned or whatever.....but i just don't know about putting one of them on the "hook" as the main lessor and letting them know if she leaves, its all on you. Help! Thanks everyone

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Jacob Sampson
Investor · Topeka, KS · Member since 2015 · 1k+ posts · 1k+ votes
6y

You don't put 1 on the hook.  They all sign and are all responsible and all need to pass background checks.  That way if the lease is broken you send them all to collections.  Further they are all responsible for 100% of the rent.  Meaning if one leaves or if all but 1 leaves the full amount still needs to be paid.  Same as a husband and wife on a mortgage.  Both parties are individually 100% responsible.

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  • Jacob Sampson
    Investor · Topeka, KS · Member since 2015 · 1k+ posts · 1k+ votes
    6y

    You don't put 1 on the hook.  They all sign and are all responsible and all need to pass background checks.  That way if the lease is broken you send them all to collections.  Further they are all responsible for 100% of the rent.  Meaning if one leaves or if all but 1 leaves the full amount still needs to be paid.  Same as a husband and wife on a mortgage.  Both parties are individually 100% responsible.

    8Reply
  • Aaron K.
    Specialist · Riverside, CA · Member since 2015 · 6k+ posts · 3k+ votes
    6y

    Two people are on the lease for a reason, both are responsible regardless of relationship status.  A lease is as much of a commitment as marriage and only slightly cheaper to get out of.

    3Reply
  • Jacob Sampson
    Investor · Topeka, KS · Member since 2015 · 1k+ posts · 1k+ votes
    6y

    or just say no.

    1Reply
  • Doug Pintarch
    Rental Property Investor · Harrisburg, PA · Member since 2018 · 369 posts · 406 votes
    6y

    This is why banks hate doing them for cars.    Me:  "So....you're not related..."    Her:  "We're fiancees"   Me: "So..that's a NO..."

    I have more than half our available lenders at all our stores now that won't even evaluate the application unless there is significant established joint credit.  Meaning an existing mortgage or car loan together.

    1Reply
  • Daryl Luc
    Member since 2019 · 226 posts · 107 votes
    6y
    follow their lead.
    0Reply
  • Bjorn AhlbladPro Member
    Investor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes
    6y

    Most of mine have been great-as good as married couples. Just screen really well and sign both up to lease. 

    2Reply
  • Ned J.Pro Member
    Investor · Manteca, CA · Member since 2017 · 1k+ posts · 2k+ votes
    6y
    The more people you have to having living there to pool income enough to qualify, the more unstable it is....... all it takes is one to bail and then things can go downhill fast...... As landlord you want stable, long term tenants that at the first "bump in the road" the car wont go veering off into the ditch and burst into flames..... Two unmarried couples where it takes all 4 incomes to qualify...... how long do you think that situation will last? I would only consider doing it if the pooled income of 2....or max 3....... would qualify them on income....if it takes all 4, then no way.... And even then, be prepared for a short stay.... 1-2 years MAX...... couples break up.....people get married and want their own place...... young and unmarried change jobs more often......
    2Reply
  • Jill F.
    Investor · Akron, OH · Member since 2016 · 2k+ posts · 4k+ votes
    6y
    I'll do it but only at a minimum of 4x rent (I'd check the debt levels and make sure they could scrape by on one income).
    0Reply
  • Kathryn M.
    Rental Property Investor · Member since 2019 · 9 posts · 7 votes
    6y

    @Shane Myers

    You don’t note where your market is, but in The NYC tri-state area this happens ALL the time. Young people can’t afford the rent. It’s kind of a trope among the 20 somethings, pairing off just to afford the nice apartment.

    In Jersey it’s required that everyone over the age of 18 living in the apartment (sleeping over more then 7 nights a month) is on the lease regardless of relationship, and this includes adult children.

    Everyone is responsible for their behavior and care for the property.

    Just vet them well, background and credit checks.

    2Reply
  • Shane Myers
    OP
    Member since 2018 · 4 posts · 2 votes
    6y

    it is in the Louisiana area. I wasn't seeing this much a few years ago. But now, it's almost every other applicant.

    0Reply
  • Shane Myers
    OP
    Member since 2018 · 4 posts · 2 votes
    6y

    If we are looking for 3x or even 4x the rent in income. But you split it between 2 people, if one leaves then the math doesn't add up ( now left with someone who only has 2x or 1.5x the income for that property) Which i wouldn't approve them in the first place

    0Reply
  • Joe SplitrockPro Member
    Moderator
    Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
    6y

    @Shane Myers I have had more many married couples break than I have boyfriend/girlfriend, so I try not to guess what will happen. 

    You can't really require a boyfriend/girlfriend to qualify individually, because you assume a break up based on a bad experience. You need to use household income. 

    You just need to make it clear to all tenants that any adult on the lease is responsible for the duration of the lease, regardless of what happens in any relationship. Same for roommates and same for married people. 

    It is 2020 and it is very common for people to live together for many years before getting married. Some people never get married, but even go on to have kids and families. 

    Also keep in mind that married couples are more likely to make purchase a house, where people just dating will opt for a lease to reduce risk if something does happen. 

    5Reply
  • Anthony Wick
    Rental Property Investor · Ankeny, IA · Member since 2017 · 2k+ posts · 3k+ votes
    6y

    @Shane Myers

    Your place, your rules. But I have no problem with this scenario. You simply make every adult tenant responsible for the full lease. If one nails and they don’t pay the full rent, all 4 get eviction on their records. If anything, the chances are the other three will step up and pay that rent.

    1Reply
  • Anthony Wick
    Rental Property Investor · Ankeny, IA · Member since 2017 · 2k+ posts · 3k+ votes
    6y

    @Doug Pintarch

    So you’re saying banks won’t allow co-signers on car loans? Makes no sense to me. Where is this at?

    0Reply
  • Bob B.
    Investor · Jasper GA · Member since 2015 · 1k+ posts · 1k+ votes
    6y

    Good advice here.  "Your house, your rules.  Just say NO."  

    The last I heard 53% of the population are renters.  I'd bet you can find a tenant that will meet your guidelines.  

    As a retired banker I can tell you co-signer loans were a pain to collect and in 18 years of land lording I have never had a co-signer. 

    0Reply
  • Doug Pintarch
    Rental Property Investor · Harrisburg, PA · Member since 2018 · 369 posts · 406 votes
    6y
    Originally posted by @Anthony Wick:

    @Doug Pintarch

    So you’re saying banks won’t allow co-signers on car loans? Makes no sense to me. Where is this at?

     Not saying that at all, Anthony. They very rarely do boyfriend and girlfriend as co-signers anymore.  This is in PA - and these are both local and national banks, this is not a localized situation.  If they have an established car loan or mortgage together it's likely to get done, but if they have no credit together it's highly unlikely to get approved.

    0Reply
  • Account Closed
    Member since 2019 · 1k+ posts · 1k+ votes
    6y

    @Shane Myers

    Both go on the lease so you can garnish/ collect from both. Joint and several. Add this clause if your jurisdiction allows:

    6.35 The Tenant covenants and agrees to pay administrative costs of no less than $500 in addition to any security deposit deduction(s) for the request and/or termination of the Lease prior to the date agreed upon herein.

    0Reply
  • Mercedes Hernandez
    Member since 2020 · 1 post · 0 votes
    6y

    Every adult goes on the lease, even married couples can separate.  Base it on Income, credit score and previous rental history.  

    0Reply
  • Quincy Lockett
    South Holland, IL · Member since 2017 · 376 posts · 432 votes
    6y

    @Shane Myers

    “Fiancé” (usually uttered by the female applicant) is just code word for boyfriend who will NEVER marry me. NEVER. I think they use that word because they believe it conveys a stronger commitment than boyfriend. It doesn’t. Those are tenuous lease agreements that I prefer not to enter.

    4Reply
  • Pat L.
    Rental Property Investor · Upstate, NY · Member since 2012 · 3k+ posts · 3k+ votes
    6y

    It's definitely becoming a trend & over the last 5-6 years my daughter's 6-plex has had a number of them. After evicting the array of late-pay inmates we inherited my daughter used social media to rent the apartments. The new stream of tenants are predominantly millennials living together to afford rents. In fact most of those leaving her building will refer other millennials to the upcoming vacancy, so it's been one couple leaving as the other couple are pulling in to unpack.

    Most of these 'quasi-engaged' couples seem to survive the 2x etc test. However, the couple, currently renting the $995/month unit, had their parents co-sign the MTM lease agreement as the GF has no income, yet!! BUT this couple has a NEW 2019 OLED 85inch TV & an array of very expensive computer/gaming setups. 

    Another couple who lived there for 2 years, got married on the property, split a year later, (he worked nights & played video games ALL day), & moved out into their respective parents basements (with Facebook etc my daughter still hears about their 'lives'). Another couple moved after 2 years to be closer to her job after graduating, Yep a barrister at Starbucks with an MBA. Another couple bought a home & left after 2 years. 

    So far they have ALL been great kids, very low key & they all love to Venmo so none have been late or a problem. 

    The married couple we have for 3 years split October 2019 & she's still there. She took on an extra job, cuts hair at clients homes & has ALWAYS pays CASH on-time. She definitely seems to appreciate the new living arrangements without him. 

    0Reply
  • Matthew Paul
    Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes
    6y

    In situations like that , take 1 check , not 4 . That way you wont hear " I paid my part of the rent" 

    0Reply
  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    6y

    @Shane Myers there is no legal requirement to allow boyfriend and girlfriend to rent, but you're cutting out a pretty large segment of the population. I recommend screening both separately, having all adults sign the lease, and ensuring you have a solid "joint and several liability" clause.

    I also highly recommend considering different standards for three or more unrelated people. You can see examples of it on my website or do a Google search for Fort Collins You Plus Two. in my case, if I have three or more people that are unrelated by blood or marriage, I require each individual to have a higher credit score and make 2 times the rent. if one person leaves, the remaining two still have a combined income of 4 times the rent which makes it less likely there will be problems.

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    2Reply
  • Shane Myers
    OP
    Member since 2018 · 4 posts · 2 votes
    6y
    Originally posted by @Nathan Gesner:

    @Shane Myers there is no legal requirement to allow boyfriend and girlfriend to rent, but you're cutting out a pretty large segment of the population. I recommend screening both separately, having all adults sign the lease, and ensuring you have a solid "joint and several liability" clause.

    I also highly recommend considering different standards for three or more unrelated people. You can see examples of it on my website or do a Google search for Fort Collins You Plus Two. in my case, if I have three or more people that are unrelated by blood or marriage, I require each individual to have a higher credit score and make 2 times the rent. if one person leaves, the remaining two still have a combined income of 4 times the rent which makes it less likely there will be problems.

     good points here. my biggest takeaway from this post is making sure if one leaves the other can handle the rent ( stand alone on their own (2x rent and good credit score).

    1Reply
  • Paul Z.
    Member since 2020 · 65 posts · 13 votes
    6y
    Originally posted by @Shane Myers:

    it is in the Louisiana area. I wasn't seeing this much a few years ago. But now, it's almost every other applicant.

    I feel for you Shane!

    I recently had a couple like this apply for my rental property in Ontario Canada. I also had these interesting combinations apply:

    - 2 new grad friends;

    - a married couple plus a mother and a niece;

    - 2 brothers and a mother

    I would much prefer a married couple with or without kids, than these unconventional mixes. For me, it's about stability and less potential headache.

    0Reply
  • Jason Brown
    Member since 2023 · 3 posts · 0 votes
    3y

    Hi my name is Jason brown I will like to rent apt please give me a call 518 805 5197 

    0Reply
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