Unauthorized occupants in LTR?

Question

Hey BP, I've been reading up on all the posts I can, but I'm to the point where I'd like some specifics answered in regards to my personal situations if you please. Thanks in advance

So, I have one residence that I just re-upped their lease, when I received their updated tenant info they have an extra person listed on there. So, for one I'm happy they were forthright, but at the same time it's not someone listed on the lease. They've been good tenants so far, hardly ever call for issues and pay on time, very nice, good people. That being said I of course don't want to rock the boat, but know I can't let this slide. So, any good thoughts on how to go about it? My thought was send them a message saying I see we have so and so listed as an occupant, we'll need to run a background check and get them added to the lease. But my real kicker of a question is do I raise rent more or let that be? I feel I should, but of course that has the potential to sour the relationship on their end. My remedy I've thought of so far is to say we need to add them to the lease or they would need to vacate the property, if they'd like to stay it's an extra $100 a month if they're willing to pay it providing their background check comes back ok and we would need to further prove income? Thoughts?

My second situation is I believe I have someone residing in a residence that has not been brought to my attention. Do I just go by for a certain amount of time and document the vehicle I've noticed in the drive? Pretty sure I know who it is too as this person was there one day when I had to do some maintenance, claimed he was just there temporarily, but I'm pretty sure he's staying there now. Then any advice on following through on that one if he is indeed staying there?

John Morgan · Answer

@Cory Lucas

They all sneak extra people and pets in. lol. I just look the other way. As long as they pay rent and aren’t a hassle, I don’t really care.

Nathan Gesner · Answer

Reach out any time.

Jane S. · Answer

Hey y'all, lease violations cost me big bucks and there is no way around tenant bad behavior except to keep a list of their idiocies and count the days to end of lease! a couple of them told me theyre "scared" of me and I like it like that. When they start bitchin about how "often" you are at the property you need to start surveilling. I schedule 6-week inspections it's in the lease. I HATE doing it cuz theyre total slobs. I had great training for this, taught middle and high school in C minus neighborhoods so guess what, many of the kids turned into renters ... it's an unbreakable tradition. Why aren't the parents "blamed" for our public failed school systems? It's on them with their addictions and disrespect of learning... today's rent due day what % of y'all will collect full amount?

Cory Lucas · Answer

@Nathan Gesner I appreciate you chiming in as I was actually going to message you and see what your thoughts were, but chose not to as I didn't want to seem bothersome. So, really appreciate your feedback and wording, will definitely help

Jane S. · Answer

meaning i will focus on 3/2 with smaller floorplan

and contact usps to find out who else gets mail there

Nathan Gesner · Answer

If you have a rule in your lease, you should be prepared to enforce it.

For the first scenario, I would contact the Tenants and explain that you require all adult occupants to be screened, approved, and on the lease. Give them five days to complete the application. Once approved, give them five days to sign the lease and be done. I would not increase rent unless some utilities are included and an additional occupant will result in additional cost.

For the second scenario, just give them a notice of possible violation and a deadline to respond:

"Dear Tenant, I have reason to believe there is an unauthorized occupant in your rental. Per your lease, all adults must be screened and approved by me, then added to the lease. Please contact me within 72 hours to start the process."

If no response or they claim it's not true, then document and decide if you want to move forward with termination or some other option.

Cory Lucas · Answer

@Jane S. that sounds terrible, what is it you mean when you say "not going that way any more"?

Jane S. · Answer

ive had unknown squatters because my properties are large. not going that way any more since squatters are no different from burglars

Cory Lucas · Answer

@Jacob St. Martin good thoughts, appreciate the feedback and I agree with setting things in place from the get go to set expectations. Really appreciate that

And yes, I've thought about getting in touch with my lawyer on it as well for the other prop. Got an email out to him on another issue already, plus that's another iron in the fire, he's retiring soon. The hits keep on comin, ha. It'll all shake out ;) Happy holidays thanks for chiming in

Jacob St. Martin · Answer

Hey Cory! You are definitely right that you shouldn't let this slide. If I were in your shoes I would explain to your tenant that anyone not on the lease cannot reside in the property long term and inform them that the person will need to go through your application/tenant screening and if they meet the requirements they will be added to the lease. As for the rent, I don't think you should raise the rent for an additional occupant. If your tenants want to have a room mate to save on rent they should be able to do that as long as they still meet your minimum requirements. You should just make sure that your property is listed at or around market rent. If you are really set on getting extra money for an additional occupant it is something that you should include in your lease so it is clear from the get go.

For your second issue, I think documenting the vehicle is a good idea. I believe that each state has different laws dictating how to deal with unauthorized tenants residing in your property so if I were you I would do some research and/or contact a lawyer.

Unauthorized occupants in LTR?

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