2 tenants one abdoned

Denver, Colorado
General Landlording & Rental Properties
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2 tenants one abdoned

Holly Buell
Member since 2018 · 4 posts · 1 vote

I have a 2 bed rental in the resort area of the mountains. Tenant A has been living in the unit for several years and I went to college with her. Tenant B just up and left without notice, she has paid though the end of the month but all her stuff is gone. I'll reach out to Tenant B to make sure she has left but what are the other steps for eviction if only one tenant has left without notice? 

I charge under market rent for the unit and Tenant A knows this and wants to stay but is difficult to live with and she cannot afford to live by herself. I feel like every 6 months or so she gets a new roommate and there is always drama. Can I put her on the lease as being solely responsible and she can deal with her own roommate issues? Could tenant A create a document type lease for her roommate? What are the pros and cons and liability here?  

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Palmer Thomas
Member since 2015 · 54 posts · 88 votes
3y

It sounds like Tenant A is costing you money by both paying under market rent and running off other tenants.  Even though she is a friend, I'd get rid of her and get new tenants.

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  • Palmer Thomas
    Member since 2015 · 54 posts · 88 votes
    3y

    It sounds like Tenant A is costing you money by both paying under market rent and running off other tenants.  Even though she is a friend, I'd get rid of her and get new tenants.

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  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    3y

    If you are fine with tenant A finding a new roommate, that is your choice.  Normally both tenants are on the lease and if one moves, so does the other.  Both are responsible for the rent if their names are on the lease.

    I'd talk to tenant A as she's also your friend (not a good idea to rent to friends because problems can arise) and tell her she's under market value for rent and perhaps she should look for a less expensive place to live or move in to a 3 bed place with two other people (rent per person will be less). Then you can relist your place at market value.

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  • Robin SimonBusiness Member
    Lender · Austin, TX · Member since 2022 · 5k+ posts · 4k+ votes
    3y

    This is really why advice is generally always to get everything formalized, written, etc - even with friends or acquaintance relationships.  And "no good deed goes unpunished" is sadly very common in real estate, as it typically ends messy if you get in situations where you are giving under-market rent etc 

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  • Richard F.
    Honolulu, HI · Member since 2008 · 3k+ posts · 2k+ votes
    3y
    Aloha,

    As you are learning, dealing with roommate situations is difficult and time consuming. One option is to inform A that if she wants to continue renting, she will need to take responsibility for the entire rent amount. If she does not qualify on her own, then any roommate needs to go through the same qualification process, and, they both need to understand "joint and several" responsibility... each is responsible for 100% of the rent if the other does not pay their fair share for any reason, including walking away. The catch for them is, they both remain responsible until you are paid or handle it through the courts. You have a process to add or remove individuals from the agreement, but don't release B without an approved and paid C. A should advertise and show the prospective tenants to find a good fit, personality wise, while you vet the financial side. The combined household financial numbers and info would be your concern, not trying to fully qualify both individually. The Security Deposit split is up to to A and C to handle between them, with you holding 100% of deposit until unit is empty, when you return any deposit due in one check payable to both current tenants.
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  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    3y
    Quote from @Holly Buell:

    I charge under market rent for the unit and Tenant A knows this and wants to stay but is difficult to live with and she cannot afford to live by herself. 

    End the lease and move her out. She can't afford it, your rent is too low, and it's a revolving door of problems. Give your Tenant written notice that she needs to be out by the end of January and move to something she can afford. If she fights, tell her you will evict the moment rent is late and then stay true to your word.

    In case you missed it, get rid of her. You'll be so much happier when she's gone!


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  • Joehn B.
    Investor · Houston · Member since 2022 · 80 posts · 44 votes
    3y

    Simple:

    Renting by the room, and difficult roommate is underpaying.

    1. Give notice to Tenant A, she needs to go.  

    2. Don't mix investing with frienships.  ever.  See #1

    3. Raise rent to market and rent it whole or Option B Make it an AirBNB/STR (assuming you don't have HOA/Condo restrictions)


    AirBNB removes the need to deal with roomate issues and since your are in a resort area it may pay better than roommates.

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