I would like to know what are some RISK letting tenants friends live in my rental without being on the lease?
I noticed my tenants are letting their friends stay and sleeping in the house. Should I be worry?
They do pay full rent on time every month.
Any advice would be great!
The issue is that if they decide not to pay rent, and you know they were staying there they are now tenants with rights. You would have to evict them separately from your lease signing tenant and lease occupants. Also, each person is more wear and tear on your fixtures, materials, doors, toilets, etc. So there is an additional expense involved with letting more people.
Are you talking about someone who is just staying the night for a night or two, or someone who is actually living there? If it's the former (just staying the night), there's really nothing you can do about that. Tenants are allowed to have guests, even overnight. Though often times there may be a clause in a lease that addresses how long the "guest" can stay overnight.
On the other hand, if you're talking about a friend of the tenant who has actually moved in and is living there, the "risk" is that you don't know who this person is and you haven't screened them. Also, if the tenant were to move out and leave their "friend" behind, you will likely have to go through the formal eviction process to get the friend out if they've established residency there. Yet you may not even know this person's name. There's still ways to do an eviction, but it becomes more difficult.
Bottom line is, even if rent is being paid every month, you need to know who is living in your property.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Join the Largest Real Estate Investing Community
Basic membership is free, forever.