Both Tenants Want To Renew Without Roommate-What Would You Do?

Both Tenants Want To Renew Without Roommate-What Would You Do?

Tom GrayPro Member
Rental Property Investor · Pittsburgh, PA · Member since 2016 · 18 posts · 12 votes

Lease is up at end of April and I sent renewal letter. Tenant #1 initially found the house and did not qualify on her own based on income, Tenant #2 qualified on her own and they both signed a 1 year lease. The living arrangements have not worked out and both stated they would like to stay in the house. Tenant #1 has not kept steady employment and needed help from tenant #2 for rent and other living expenses. Tenant #2 would like to resign a lease with her and her boyfriend that would also qualify for screening standards of income, credit, etc. 

I know this is a very delicate situation and wanted some feedback on how other property managers might handle renewal. The best options I came up with so far are 1. Terminate their current lease and resign a new one with tenant #2 and boyfriend. 2. Terminate the lease and find new tenants.

What would you do? Thanks in advance. 

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Theresa HarrisPro Member
Member since 2019 · 15k+ posts · 11k+ votes
6y

@Tom Gray  If tenant 1 doesn't meet your rental criteria on her own, tell her that.  When the lease is up either renew it with tenant 2 or both or tell them you will advertize it for rent and they are both welcome to apply separately.

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  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    6y

    @Tom Gray  If tenant 1 doesn't meet your rental criteria on her own, tell her that.  When the lease is up either renew it with tenant 2 or both or tell them you will advertize it for rent and they are both welcome to apply separately.

  • Real Estate Broker · Northeast PA · Member since 2017 · 2k+ posts · 2k+ votes
    6y

    Maybe I'm missing something from your post, but I don't see this as a 'delicate situation'.  They don't get along, they don't want to live together, let them go their separate ways.  Raise the rent and as @Theresa Harris says, the lease will go to the best qualified.

  • Rental Property Investor · Villa Rica, GA · Member since 2014 · 220 posts · 360 votes
    6y

    Is this rent by the room? Duplex? Tri?

    If both tenants are paying, paying on time, and have not given you a reason to not renew then I think you renew with both. Once the tenant is unable to pay or breaks the lease you evict. If you just know tenant #1 situation and didn't want to renew with her let her know she won't be renewed because she doesn't meet tenant requirements.

    If the boyfriend moves into the room he needs to be put on the lease. That way he's on the hook too.

    Good luck!

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

    Extricate yourself from this nonsense.

    You don't have good tenants. Tell them you've changed you mind and the renewal offer no longer stands. Get them out by the end of the lease and start fresh.

    The DIY Landlord Book4.7248 Reviews
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