We have an Occupant Clause in Rental Lease. Tenant has asked why we need this info?

Question

Hi there,

We put an occupant clause in our rental lease for a 2 bedroom unit in New Mexico and our tenant has asked why this information is needed? I have not responded yet but I wanted to tell her that we have the right to add anyone as the Tenant if they are over the age of 18 as well as run background and credit checks on the additional Tenant. I also want to say that we are depicting who is considered a long-term occupant vs guest. We have a guest clause that says if someone is staying longer than 7 days, they must let us know and we must accept in writing. I said adding her children as occupants clears them up as long-term occupants vs guests for legal and insurance purposes.

Should I also let her know that I have to keep track of the number of people who is living in the apartment? It is a 2 bedroom apartment. I wouldn't want someone having their friends or family members come and live with them if there's really nowhere for them to sleep. It is her, her boyfriend, and her 3 kids.

Randall Alan · Answer

@Stephanie Noriega

I have a better answer for you. Let’s say that “friend B” moves into the apartment. Then “Tenant A” decides they are going to move out… be it because of a fight, or going to live with a boyfriend, or whatever. Sometimes this will happen without them telling you. Now you have some stranger (to you) living in your unit and you know nothing about them. Then they quit paying the rent and you don’t even know who to evict, or how to contact Friend B because all you knew about was Tenant A.

We also don’t like to have the unit sublet without us knowing about it. So any adult who is going to live in the unit has to be listed on the lease. We don’t charge any extra for it… It’s just information we need to have, and we will explain it how I explained it above, and usually they don’t find us on it. But we do tell them we will run a minor background check to make sure that we are OK with the person that’s going to be living in the unit.
We also explain to Tenant A that they remain responsible for the lease, and whatever Friend B does to the unit, Tenant A is still responsible for any damages, etc.

all the best!

Randy

Nathan Gesner · Answer

All adults must be screened, approved, and added to the lease before they occupy. This ensures you are aware of who lives on your property and it makes them subject to the terms of your agreement and the law.

If you have a rule, you should know "why" it exists and how to explain it easily.

Stephanie Noriega · Answer

Thank you! I did know my “why”. I just didn’t want to respond and put my foot in my mouth. I asked this question because I am starting out and wanted advice from others who have been doing this awhile. My lease was drafted by an attorney and I also posed the question to them as well. . I did respond to her with part of what I said and some added items after a conversation with the attorney who helped put together my lease. I did respond with part of what you and the previous post said, with added items such as keeping track of the number of occupants per federal and local housing regulations, letting her know it’s important to know who’s occupying in case of an emergency, and it also protects her and the children’s rights as tenants of the unit.

Corby Goade · Answer

Anyone over 18 should be screened. Every lease says something about guests staying longer than X days, but obviously that doesn't mean that you need to screen someone's mom visiting for two weeks, it's to keep other legit occupants from moving in.

If your applicant is really pushing back on that now, just imagine how much fun they'll be once they move in...

Stephanie Noriega · Answer

Agreed if it were someone who just didn't want to fill out an application because of the occupant info...We took over some slumlord managed apartments. The tenant actually replied  after my response and said they really appreciated me for explaining the why and she was very happy to have a landlord that wants to put specific items like that on paper so she can look back on the lease and know what she can or can't do. The last lease she had was one page..

Her initial concern was giving out her children's information. I told her that it would be kept confidential and the only purpose was for property management.

Michael Smythe · Answer

It's not, "everyone over 18".

It's actually, "everyone over 18 that is not claimed as a dependent on another tenant's federal tax return".

This covers college students still living with mom and/or dad as well as someone that requires a legal guardian.

Dan H. · Answer

We purchased a rent controlled building with one unit vacant, one unit significantly below market rent (~1k less than market rent), 2 units far below market rent (~$2k below market rent).  I was expecting to have to do no fault eviction for at least the two far below market rent when it came time to rehab the units.

We gave each tenant the application forms and indicated we would do credit and criminal checks.  Two of the tenants returned the applications and we provided them leases.  One tenant who was far below market rent did not.  We asked multiple times, no application.  We told them that not apply indicated they did not want to live there as we have to know who is living in our unit.   They gave us notice.  I question what the background check was going to show that made them give up a unit that was ~$2k below market rent.

You have to know who is living in your units.

Stephanie Noriega · Answer

Thank you. This helped confirm my line of thinking. I appreciate your reply and the thorough explanation and examples.

We have an Occupant Clause in Rental Lease. Tenant has asked why we need this info?

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