Multiple tenants for one rental

[Steve Huey]

I have a rental townhome on the market.  There are four tenants, all in their mid 20s.  Three are qualified and one is not qualified. These tenants are two non-married couples.  In the past, I’ve only rented to families so I’m not familiar on to handle this and if I should take this offer to rent my unit.  The renters are willing to pay two months security deposit for a 12 month lease.

I have a few questions.  

How should I handle a rental with four tenants?  

Should I wait and look for another possible tenant? 

[Nathan Gesner]

I have some stricter requirements for three or more unrelated renters. The reasons:

• unrelated roommates have a higher propensity for breaking up. When one moves out, the remaining tenants are unable to afford the rent;
• unrelated renters tend to have more conflict;
• The more adult renters, the more vehicles which can cause parking problems;
• more adult renters means a larger circle of friends and a higher likelihood of increased visitors, parties, noise complaints, etc;
• excessive wear and tear on the property

My requirement is that each adult must make two times the rent or higher And they must automatically pay a double deposit. If four friends rent a $1,400 house, each of them would have to earn at least $2,800 a month. Even if two of them decide to move out, the remaining two would earn a combined income of four times the rent or higher, ensuring it is still affordable. The double deposit mitigates the increased risk of excess wear and tear due to the number of adults and potentially higher number of visitors.

my policy is available on my website if you want to read it or you can search for "Fort Collins You Plus Two" and see how they've tackled it as a city ordinance.