2 Units, Lender Insists 1 Lease

[David Britt]

Two structures on one lot.  Structure one is a typical 2 story house.  Structure two is a 2 story building with an apartment above a garage.  The obvious plan is to rent to two separate parties on two separate leases, but the lender is telling me all renters for this property must be under one lease.  Why does the lender insist on one lease and how can i get around it?

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[Eric Veronica]

If the 2nd unit above the garage is a legal accessory dwelling unit then you should be able to use two leases.  If the accessory dwelling unit is not a legal then you might not be able to use a 2nd lease.