How much to raise rent for additional tenant

[Mike Palmer]

Hi all:

I have a unit rented to some college students (in Ogden, Utah). So far they have been good tenants. One of them is a friend of the others as was planning to move out of town and was initially only a temporary tenant, so I gave them what I feel like is a really good deal because she was only staying 3 months. Well now she has decided she would like to be added to the lease and stay the remainder of the lease. 

Has anyone dealt with this situation? What is typically a fair amount to charge for an extra person? It was rented as a unit (not per room), but I also pay utilities and build that into the rent. What would you do? 

[JD Martin]

You did it backwards in my opinion. You don't give a great deal because they are only staying three months - you charge more because of your increased overhead. Of course they want to stay now, because they're getting this great deal. I would encourage the move-out unless they want to pay the true costs of renting the unit (FMV+whatever - utilities, etc). Then re-price the unit accordingly.

If you're going to give a discount, do it on volume, not lack thereof.