unauthorized occupants, can I raise rent? prop mgr says no. NC

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unauthorized occupants, can I raise rent? prop mgr says no. NC

Wendy M.
Member since 2021 · 4 posts · 0 votes

Single mother and her 2 teens are on lease (March 2020) but she really moved in with her 27 yr old daughter plus her 4 kids, as well. Neighbor let me know as he had a friendly chat with them when they moved in. I told property manager at that time but they said nobody else lived there but people were helping them move in. Turns out neighbor was right and they lied back then because on a recent visit where I had to fix a problem the adult daughter verified that she was living there from the start. Told me she was not on lease but pays rent to her mother.

I went to property manager with this info and was told they can't do anything since they're family other than give them the opportunity to have her fill out application and be vetted and if she is approved by them then she can stay. I asked them to raise the rent for the remainder of lease as the terms (how many people were living there) had changed. There are 7 permanent and 2 part time residents now (the mother's college age kids who are home "due to covid" and schools being out.)

Is it not possible to raise the rent due to so many previously unauthorized tenants?  I am in NC.

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Kyle J.
Rental Property Investor · Northern, CA · Member since 2012 · 5k+ posts · 5k+ votes
5y

You can't just arbitrarily raise rent on a tenant if they're in the middle of a lease.  You can address lease violations though, like having unauthorized occupants living with them.  

We obviously haven't read your lease, but typically leases are written for the "sole use" of the named tenants (or verbiage similar to that).  Perhaps there's also a clause about the maximum number of days a "guest" can stay with them.

Point is, read your lease and address any terms/conditions that are being violated.  (In my state, I'd have to issue a "Cure or Quit" notice giving the tenants an opportunity to fix the problem or face eviction.  I'm assuming there's a similar type notice in your state.  Your property manager should know.)

Good luck.

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  • Kyle J.
    Rental Property Investor · Northern, CA · Member since 2012 · 5k+ posts · 5k+ votes
    5y

    You can't just arbitrarily raise rent on a tenant if they're in the middle of a lease.  You can address lease violations though, like having unauthorized occupants living with them.  

    We obviously haven't read your lease, but typically leases are written for the "sole use" of the named tenants (or verbiage similar to that).  Perhaps there's also a clause about the maximum number of days a "guest" can stay with them.

    Point is, read your lease and address any terms/conditions that are being violated.  (In my state, I'd have to issue a "Cure or Quit" notice giving the tenants an opportunity to fix the problem or face eviction.  I'm assuming there's a similar type notice in your state.  Your property manager should know.)

    Good luck.

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  • Julie Hartman
    Property Manager · Denver, CO · Member since 2021 · 667 posts · 587 votes
    5y

    I am a PM myself and we've had this issue come up several times. You cannot change a lease that is already in play. When this issue comes up, we consult with our attorneys and they tell us that unless you can PROVE these extra people are actually living there full time, there is nothing you can do. Proving something like that is very difficult. Tenants will tell you that these people are just visiting or staying a short time. If we know different, we simply wait for the lease to expire and get a new tenant in there. Good luck!

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  • Wendy M.
    OP
    Member since 2021 · 4 posts · 0 votes
    5y

    They've admitted to living there from the start. They denied it back in April but now they say they'll fill out an application on the additional adult that has her 4 children with her. Isn't that reason to adjust rent? 5 additional people living in the house? If not I guess I'll wait it out but I was just wondering what the legalities were.

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  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    5y

    You're both wrong. You can't raise the rent because they are under a written contract that states what the rent will be.

    However, they can't change the number of authorized occupants.

    Your solution is to give the tenant written notice she is in violation of the contract by adding an unauthorized adult. The adult daughter needs to move out within 48 hours or you will terminate the lease.

    If she comes back and offers to pay a higher rate, you can negotiate a new lease with new terms. Otherwise, she should be forced to comply with the agreement or vacate.

    I would start looking for a new property manager.

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