Rental Property Investor · West Des Moines, IA · Member since 2018 · 447 posts · 64 votes
Hello,
I generally keep my tenants on a month to monthease as it gives me some flexibility.
My last tenant vacated a 3bed 1ba abruptly due to a divorce during peak winter when it's not ideal to find a new tenant. Someone in my neighborhood was looking for an apartment with a total of five roommates and since they seemed like a right fit at that time I moved forward, they added another roommate later and now want to add another roommate as they are struggling to make payments. They haven't missed any payments last three months and requested to add additional roomates so that they can be on top of their payments
I personally think 7 roomates in a 3bed 1ba is little too much for the apartment that also has a shared laundry with another apartment,not to forget the wear and tear with so many people.Should I continue with them if they are keeping the place generally in condition or ask them to find another place within next couple couple of months or so.
Interested to hear thoughts from other experienced members here.
@Peter Morgan 7 tenants in a 3/1 would be the max allowed by my state. 2/bedroom and 1 more. Personally I feel like this is too many and no offense to any of the tenants can’t imagine why between the 6 of them they can’t afford the rent.
You haven’t said what amount the rent is but I’m sure it’s not NYC prices and reasonably between 6 adults if they’re working even part time jobs they would likely be able to come up with the rent.
I don’t think adding a 7th person is the solution. I’d ask them to move and find less tenants. All of my 3/1 units have a couple either by themselves or a few have one child. No reason for so many tenants.
@Peter Morgan 7 tenants in a 3/1 would be the max allowed by my state. 2/bedroom and 1 more. Personally I feel like this is too many and no offense to any of the tenants can’t imagine why between the 6 of them they can’t afford the rent.
You haven’t said what amount the rent is but I’m sure it’s not NYC prices and reasonably between 6 adults if they’re working even part time jobs they would likely be able to come up with the rent.
I don’t think adding a 7th person is the solution. I’d ask them to move and find less tenants. All of my 3/1 units have a couple either by themselves or a few have one child. No reason for so many tenants.
Peter, you need to cancel this lease and get them out.
Seven is the absolute maximum occupancy, but you should be very careful about roommate situations. There is increased drama, increased lease violations, parking problems in your community with up to seven different cars (plus visitors), increased wear-and-tear (particularly in a single-bath home), and a dozen other problems.
Despite having SEVEN able-bodied adults living in this rental, they can't afford rent? I looked at Des Moines rent and suspect it's around $2,000 a month. With utilities, $2,500. That's $360 each!!! An entry-level job at WalMart or McDonalds will easily earn them $2,000 a month, but they can't afford $360 a month? I bet dollars to donuts your tenant is paying you $2,000 and then he's charging his roommates extra and making money off your property.
My policy? If three or more unrelated individuals want to room together, each individual must make at least 2x the monthly rent. That ensures they can still afford the rent if one of them chooses to leave.
I hope you figure this out soon before it bites you. I also recommend you consider looking at a professional property manager that can protect you from these mistakes and maybe even put more money in your pocket.
They are all students and some of them are working parttime , I will have them find another place soon.
That still doesn't matter. Their parents can pay for their room and board. I don't offer discounts or special concessions for students. If they want to live off-campus, they need to pay a market rate.
A quick search tells me it costs $7,700 to live on campus. If you were charging these students $500 each, you would make $3,500 a month and the students would be saving money compared to campus. I think $500 is generous considering the wear-and-tear and issues you are facing.