4 Tenants in a SFR

[Chris Adams]

Oh the joy of having to find tenants in November !

One of my tenants is moving out over Thanksgiving weekend, he gave me 60 days notice and understands he will not be receiving his last months rent back if I can not place a tenant prior to the end of December.

The house is a 1650sf 4 bed 2 bath w a nice size 2 car garage, on a 1 acre lot with a good sized driveway.

I have had 1 phone call about the house in the week it has been on Clist, this person is looking for a 4 bedroom home for her and her brother along with 2 other friends/boyfriend. They plan on splitting the rent 4 ways.

My initial thought was no, hell no. But the ore I thought about it, I'm starting to feel like a hypocrite. I'm constantly trying to teach my nieces and nephews about being financially responsible, and here in front of me are 4 people that might be trying to do just that.

I realize the pitfalls here, 4 people would have to be named on the lease. If 1 person leaves then there are 3 left to pay rather than 4. 4 people will put more wear and tear on the house that 2, but then a family with kids would probably be worse than 4 adults.

Typically in any situation where i feel less confident about the tenants I raise my Sec Dep requirements. As it is I require 1st/last and 1 month sec dep.

I'm meeting with them today to show the property, so I hope to get a better idea of their character. I also run credit & background checks.

I still have 7 weeks to find a tenant so I am in no rush here.

I'd love to hear some thoughts on the idea of 4 adults as tenants in a SFR

Thx

[Jerry W.]

Hey @Chris Adams , be sure to put on your lease that they are jointly and severally liable for rent and damages. Make sure that it is clear that you can sue any one of them for unpaid rent and damages and they must pay all of it, and it is up to them to get the money back from their friend if they want to only pay one fourth of the claim. the standard claim is I didn't do that Ralph did, or I paid my 1/4, etc. They need to understand each of them are liable in full, This might not sound fair but trust me it is very important.

Since I am posting I wanted to tell you how impressed I am with your acquisition model. I very much like your plan. Best of luck.