How to structure lease in a House Hack situation

[Jack Bailin]

Alright, so I'm currently actively looking for my first deal, a house hack, and I have a few properties I'm visiting this week. All of them are multi-families, either 3 or 4 units. As I hope to have one under contract very soon, I'm starting to consider how to work out lease agreements, particularly in the case of the unit I will be occupying myself. I'll use one of the properties I'm going to look at on Thursday as an example.

The property is a triplex, 3/1.5, 1/1, 1/1. The numbers work very well, provided I live in the 3/1.5 and find two roommates to live with me, while renting out the 1/1's. Lease agreements for the 1/1's will be no problem, but I'm a bit confused on how to approach structuring a lease for roommates that I'd find to live with me in the 3/1.5.

Has anyone else out there come across a similar scenario, and if so, how did you handle it? I'm also very open to general suggestion on how to approach this situation. I figure it's in my best interest to start thinking about this now, and not when I'm on my way to the closing table! 

Thanks a million everyone, this community has taught me everything I know thus far about real estate, and I'm about to start turning my dreams into a reality!

[Daray Olaleye]

@Jack Bailin

If it's a triplex (as opposed to a single family with 3 rooms) then you would structure it the same as any other stand alone lease. Some things that you should consider when it comes to the lease are: Inherited tenants, Pet Addendums, RUBS - who pays for water, electricity, etc. There are lots of other things to consider like late payment fees, when payment is officially late, security deposits, etc but the aforementioned are things that you should consider in your underwriting before making an offer.