How much to raise rent for additional tenant

Question

Hi all:

I have a unit rented to some college students (in Ogden, Utah). So far they have been good tenants. One of them is a friend of the others as was planning to move out of town and was initially only a temporary tenant, so I gave them what I feel like is a really good deal because she was only staying 3 months. Well now she has decided she would like to be added to the lease and stay the remainder of the lease.

Has anyone dealt with this situation? What is typically a fair amount to charge for an extra person? It was rented as a unit (not per room), but I also pay utilities and build that into the rent. What would you do?

JD Martin · Answer

You did it backwards in my opinion. You don't give a great deal because they are only staying three months - you charge more because of your increased overhead. Of course they want to stay now, because they're getting this great deal. I would encourage the move-out unless they want to pay the true costs of renting the unit (FMV+whatever - utilities, etc). Then re-price the unit accordingly.

If you're going to give a discount, do it on volume, not lack thereof.

Rosston Smith · Answer

I think 50% of the current rent is a fair deal. They can take it or leave it. Would still be cheaper than other units.

Curtis Bidwell · Answer

Hi, @Mike Palmer  I rent to college students both in 2-bed apartments and in a 4-bed house.  My contract stipulates that occupancy is limited to 2 adults plus children related to one or both.  Exceptions allowed on a case by case with additional fee.  For a 3rd student in the apt I add $125, in the home it's $150 with maximum number of students being 3 and 5 respectively.

I simply use an addendum to add/remove tenant from the original contract.  If they want a walk thru its $100.  I am also strongly considering an transition fee for the amount of time involved in adding a new resident, probably $75.

For students, you can't look at it in terms of market rent.  they are often paying well under dorm rates even with the increase.

Thomas S. · Answer

If your lease does not state a limit on the number of tenants or the amount each tenant pays legally you have no right to charge for the additional tenant. Legally your options are to keep the additional tenant without charge or kick them out unless your state regulations state otherwise..

I would charge 1/2 of what each original tenant was paying.

Jim Adrian · Answer

@Mike Palmer

I would screen the tenant like you did the others unless you already have.  I think you will be stuck with this person if you find things that don't pass your screening since she is been here for 3 months.  Not knowing what market value or current rent is its hard to say because rent is based on the property not number of people.  I would add another $50 to rent.  I think $100 would be my max.  Look at your utility bills and compare them to past tenants to see if this extra person is costing you more in utilities.   I would not gouge them, but I could be too nice.   Either write a new lease with all names or issue a lease addendum adding the new name with all signatures.

Mike Palmer · Answer

Sorry, I think I posted this in the wrong section. Anyone know how to move it?

How much to raise rent for additional tenant

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