Looking to lease out my property and for the first time dealing with a group of 3 friends who are interested in leasing together. Individually, they can't qualify with income, but as a group, they're well above my requirements. I've communicated with them if one member leaves, then the rent will fall on the shoulders of the other 2. I'd like to put them all on 1 lease for simplicity - my question is are there any potential pitfalls I'm missing? Any specific clauses that should be included in the case someone bails and the other 2 have to be responsible? A new friend replaces one of the members in a few months? etc.
Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
2y
@AJ Cerbo Like student leases you make them jointly and severly liable and have them sign one lease. You run into the issue of one leaving and them bringing in a new roommate. If they have roomed together before might not be as big of an issue. Just be clear that if one leaves and they propose a replacement you have approval. Another issue you may run into is vehicles. You have 3 people and 3 cars, then you get a GFs or BFs so I have a car limit for the property to insure that you don't get some guy with 2 or 3 cars plus a couple significant others and you have a parking lot. Also set a line of communication. It is always best to have a lead person on the lease. Sometimes it is better to have them collect and send you the rent so you don't keep track of multiple people and when you impose a late fee it is on them to pass it on to whoever was late. Although I copy every one on property repairs. instructions etc, it is always good to have one person co-ordinate someone being around for say a furnace clean so you don't have to do it.
Looking to lease out my property and for the first time dealing with a group of 3 friends who are interested in leasing together. Individually, they can't qualify with income, but as a group, they're well above my requirements. I've communicated with them if one member leaves, then the rent will fall on the shoulders of the other 2. I'd like to put them all on 1 lease for simplicity - my question is are there any potential pitfalls I'm missing? Any specific clauses that should be included in the case someone bails and the other 2 have to be responsible? A new friend replaces one of the members in a few months? etc.
We use one lease and have names listed and/or on the lease. Make sure you have in there no subletting