Multiple Tenants - Do they all complete an application?

Question

I have a 3BR rental coming up as my first rental and applicant is 3 adults and have been told they're splitting the rent in thirds.  Do I have all 3 complete the application on SmartMove?  I imagine I would want to know the pertinent information for all 3, yes?

Aaron K. · Answer

Yes all adults need to complete an application, especially if they are planning on splitting the rent equally.

Joe Splitrock · Answer

Many states do not require deposits to be held in a specific interest bearing account. Check state laws, but if not required there would be no reason to hold deposit in the tenants name.

When we have more than one person on the lease, we put everyone's name on the check. We tell tenants it will be returned that way and they need to work out disbursement.

Each tenant should be aware that their lease agreement is not for 1/3 of rent. They are responsible as a group or individually for 100%. In other words, the lease gives you rights to collect unpaid rents from any of them. Same with damages. This is to avoid a situation where the tenant claims they "paid their rent" or "the damage wasn't mine so I am not paying for it".

As far as the original question, yes each adults should fill out an application. We use combined income and average credit score for approval.

Michael Jones · Answer

If it were me I would have all three be equally responsible for the full rent. Notice I did not say "their portion of the rent" but rather the full rent. In otherwords, if the rent is not paid and I have to evict I am evicting all three of you and it isnt my issue to manage how the money gets paid and from whom. Pay the rent or be all three will be evicted just like a single tenant.

Nathan Gesner · Answer

You should always screen every adult residing in the property, even if they don't pay rent. The background check can provide:

1. Identity verification

2. Criminal history, sex offender registry, terror watch list

For example, mom and dad want to rent a 3bed/2bath house and their 27-year-old son will live with them while going to school or something. Background check reveals he's a registered sex offender or that he was just released from prison for felony distribution.

It's also common for a decent tenant to want to add a roommate later on. You should always screen the new person first to ensure they're clean before letting them move in. After they are approved, they should sign the lease so they become legally responsible for any damages, unpaid rent, etc.

Filipe Pereira · Answer

I agree with what's been stated above, but wanted to add that if you do go with these tenants, make sure everyone knows very clearly who will be the primary account holder for the security deposit, unless you are going to open 3 different security deposit accounts. This will save you a lot of potential frustration on the back end.

Bryan Devitt · Answer

@Matt Cupp yes, all of then must pass the criteria individually and make sure you put them all on a single lease unless you want to be a babysitter/therapist/broke

Steve Vaughan · Answer

Before anyone even gets a response from me, I know how much they smoke and how many animals they have.  I hope you can answer these questions as well.

And yes, full screen every adult💪

Marian Smith · Answer

@Matt Cupp  Most apartment complexes’ leases hold all adult tenants “jointly and severally” liable for rent...so yes, to collect any back rent or damages jointly and severally you need an application from each and all the info about each person.  Any time you allow an adult to live on the premises for an extended period of time they can set up residency and to evict you need to know who the heck they are.

Also, your lease must also only allow 1-2 night stays for visitors if you do not want a fourth unknown “tenant” who has not signed a jointly and severally liable contract.  Sounds overbearing to limit visitors’ stays, but you have to to protect yourself.

Joe Cassandra · Answer

Make sure you know the relationship of these 3 adults. (coworkers, lifelong friends, etc.)

My rule is only two non-related adults allowed at a time. Else, if a relationship breaks apart,  you could be in trouble with trying to get rent...or tenants who can't pay the full rent because 1/3 of the group got married and moved out.

Not trying to raise red flags or worry you, just do a little more due diligence.

Congrats on the first rental :)

Filipe Pereira · Answer

@Matt Cupp @Chuck H. I used the term "primary account holder" loosely, and it's probably not the right term. My apologies. The back story of this is that the bank we use only allows the security deposit to be attributed to one person. Connecticut state law requires that tenant security deposit funds have to be in an interest bearing escrow account, in the name of the tenant. It's not possible (to my knowledge) to have more than one tenant on these accounts because we are required to submit a W-9 so that any interest goes to the tenant, and therefore the tax liability on that interest, as well.

One person from the lease is identified as the security deposit account holder. You can add verbiage in the lease to clarify who that person is and have everyone sign it. We also have "primary contacts" for each apartment, especially in roommate situations. We try as much as possible to do group chats, but sometimes that isn't possible, so we have a dedicated point of contact. That person is as equally responsible for the lease as the others, and the lease binds all parties who have signed it. If someone isn't comfortable having the security deposit in their roommate's name, they probably shouldn't be living with that roommate... Unfortunately splitting the deposit isn't really an option either because then it becomes a thing of "I didn't do that, that was person A, take it out of THEIR deposit!"

Multiple Tenants - Do they all complete an application?

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