Tenant wants to move her adult son into the home. What should I do?

[Melissa Faraias]

Hello BP community,

I am a newbie landlord and I have rented one of my units (SFH with 3 bedrooms/2 baths) to an older couple and their adult daughter. They have been wonderful tenants so far. The mom recently told me that her adult son is moving to the United States from Dubai and will be looking for a job here. He would like to stay at the house till he finds a job. His wife and child may be moving as well in a few months. He just got a social security number and has signed the lease. I wanted him to fill out the application and do a credit/income/background check but I'm not sure if he will pass since he has no history in this country. I do not want to reject him based on those grounds and I am considering increasing the rent by $100 a month and letting him move in. I did tell the current tenants that if the wife and child move in, it will be an additional $100 per adult and $50 per child to account for the wear and tear on the property. Does that sound reasonable? Should I have the current tenants sign some sort of document taking full responsibility for the family that is moving in? Thank you for any advice that you can give me.

[Bruce Woodruff]

In my opinion, they are taking advantage of you. From 3 people, you went to 6? That's double if I'm doing the math correctly :-)

I think that takes a lot of nerve.

I would say NO. But if you persist, then I would make sure that you have this covered legally - contact an Attorney first! What if the son can't find a job? That is very likely. Do you want 6 people in your house for year(s)? I would also charge more than $250 for the extra hassles and costs. Everything in the home will get double usage, especially the appliances.....

Also make sure your liability insurance knows that they are now responsible for insuring 6 people.

This just sounds like a bad idea to me....

[Gustavo Delgado]

I would be very careful here. I am leaning to saying no but I may ask for additional deposit PLUS additional rent. But you may have to rewrite a whole new lease or amend your current lease for the changes

[Melissa Faraias]

Quote from @Gustavo Delgado:

I would be very careful here. I am leaning to saying no but I may ask for additional deposit PLUS additional rent. But you may have to rewrite a whole new lease or amend your current lease for the changes

 Thank you for your response. I added an amendment to the current lease and I increased the security deposit and rent (not by much though) and told the tenants that I will not be accepting the wife and child when they move here in 4-6 months. I hope I haven't taken too much of a risk. Thank you once again.

[Melissa Faraias]

Quote from @Bruce Woodruff:

In my opinion, they are taking advantage of you. From 3 people, you went to 6? That's double if I'm doing the math correctly :-)

I think that takes a lot of nerve.

I would say NO. But if you persist, then I would make sure that you have this covered legally - contact an Attorney first! What if the son can't find a job? That is very likely. Do you want 6 people in your house for year(s)? I would also charge more than $250 for the extra hassles and costs. Everything in the home will get double usage, especially the appliances.....

Also make sure your liability insurance knows that they are now responsible for insuring 6 people.

This just sounds like a bad idea to me....

 Unfortunately I should have asked for advice before I started the process with the current tenants. I will only be accepting him and not the family. Thank you for your response. 

[Bruce Woodruff]

Quote from @Melissa Faraias:

Quote from @Bruce Woodruff:

In my opinion, they are taking advantage of you. From 3 people, you went to 6? That's double if I'm doing the math correctly :-)

I think that takes a lot of nerve.

I would say NO. But if you persist, then I would make sure that you have this covered legally - contact an Attorney first! What if the son can't find a job? That is very likely. Do you want 6 people in your house for year(s)? I would also charge more than $250 for the extra hassles and costs. Everything in the home will get double usage, especially the appliances.....

Also make sure your liability insurance knows that they are now responsible for insuring 6 people.

This just sounds like a bad idea to me....

 Unfortunately I should have asked for advice before I started the process with the current tenants. I will only be accepting him and not the family. Thank you for your response. 

 Good luck! Maybe since you aren't allowing his family, they'll all pass....?

[Jessica Stinnette]

Be careful how you word any of this though, if you had told the tenants the adult son could apply but not his wife and daughter it could be familial status violation for fair housing. I would just tread lightly. Reality is, the wife and child will likely move in if he does. You should answer with, anyone over the age of 18 must apply and be approved to be formally added to the lease and permitted to move in.

[Lynn McGeein]

@Melissa Faraias research Fair Housing laws because if you already allowed husband on lease but are denying his child or charging extra for his child, that may be a violation. You can deny if family doesn’t meet occupancy, like too few bedrooms per city or local requirements. I wouldn’t state any final decision on family until I talked to someone knowledgeable about Fair Housing and your local occupancy codes.

[Rick Albert]

I would be weary of charging different prices for an adult versus a child. To be honest, they cause the same wear and tear and you don't want to be accused of fair housing laws (family status). 

I would increase the rent because that is significant wear and tear. But if you increase the rent, how do you know they can pay it? With the new additions that are coming in, they don't have jobs so it might be tough on them.

If you like the tenants, then I would increase the rent and still do the background check. Even if it comes back blank because of lack of history, you at least rule out if they are lying.

[Brian Kloft]

You need to be very careful of federal housing laws. If the adults are able to pass the application process then you might not be able to say no without causing problems. Your current renters already meet the requirements for income to cover the rent. If the total number of people doesn't exceed 2 per bedroom then you could be treading on shaky ground legally. You have a 3 bedroom and if they wanted more than 6 people in there, no matter how young, then you would be fine denying. 

Also be careful about asking for extra rent because of more adults. If when you were renting the place in the beginning if a family of 5 came to rent it vs a family of 3, would you have charged them more money because they were 5 people? Would it be legal to do so? If no than I doubt it would be legal now. 

Make sure to run applications on any new adult. Also remember that no credit score typically can not be held against someone as it can be a sign of a form of discrimination, depending on the reason.

This is one where you should ask a legal expert if you risk violating any fair housing laws by doing this. 

[Theresa Harris]

I could see the son for a few weeks until he finds his own place, but having the entire family there for more than 2 weeks is a lot especially in a 3 bedroom house.  If it will be 4-6 months before the wife and kid move over, that gives the son plenty of time to find a place and they should be able to move directly into their own rental when they come over.

[Nathan Gesner]

1. Fair Housing may not apply to this landlord: https://www.equalhousing.org/fair-housing-topics/exemptions-...

2. Always treat every applicant the same. Even if he has no credit/criminal history in this country, you should process an application screening like you do for every applicant. Every adult should be screened and approved before occupying. If you don't get any information from his credit/criminal, you can at least verify identity and income.

3. If Fair Housing does apply, make sure you are treating everyone equally. Don't discriminate against children, charge different rates for children, etc.

4. $100 a month doesn't sound like enough. Let's say your home rents for $2,000 a month. If the son and his family had to find their own place, they would pay $1,200 - $2000 a month. Jumping into your existing agreement is a huge savings for them, with no benefit to you. I would charge a significant amount, like 25-50% more than you charge the current tenants. This is still a savings for his family, but it ensures you are compensated and risk is mitigated. 

[Melissa Faraias]

Thank you all for your valuable insights.