How do I address my tenent having a live-in guest?

How do I address my tenent having a live-in guest?

Lender · Ogden, UT · Member since 2016 · 9 posts · 4 votes

I began renting out my 3 bed 1 bath in November to two tenants that are roommates living in separate rooms. Less than a month later I stopped in for a scheduled maintenance request and found one tenant's boyfriend hanging out. I didn't think anything of it except that I saw they had put a mattress in the 3rd bedroom, which I thought was odd but not necessarily condemning since there is a built-in box in that room so there isn't much else to do with the space. When I returned to the house a couple weeks later to repair a door upstairs, the boyfriend was there again with the tenant, and he had his two kids there as well. As I was working on the door, I noticed the mattress in the 3rd bedroom had been removed, but the room was full of things as if it was being used for a bedroom (guitar on a stand, books up on shelves, etc.).  After everyone left and I was still working on the door, I checked the master bedroom and found the mattress had been thrown on the floor next to their bed. I'm not sure if they were trying to hide it from me? Also the roommate for whom I was repairing the door requested a lock on the door, so my curious mind says he wants it to keep the kids out of his room. I'm at a loss for what to do since they've been great tenants so far, in that they have kept the house immaculately clean and organized and the kids seem well behaved, but it might be too soon to tell. My suspicion is that the boyfriend is staying in the master bed with my tenant, and his two kids are sleeping in the 3rd bedroom. Adding fuel to my suspicion, after I finished the door for the one tenant, they requested I install a door for the 3rd bedroom so the cats won't get in. In my mind, they wouldn't care if the cats got in unless someone was sleeping in that bedroom every night. 

I read through my contract, and my understanding is that I can prohibit guests from living in the home, but unless I do that and they continue keeping him, then I don't see that they are in breach of contract. I am using the Rentler.com rental agreement in case anyone is familiar with that. I am curious if anyone has had experience with this and could share. How should I handle this? On the one hand, they have kept the house very clean and I feel they will be good tenants and I don't want to start off with a confrontation. On the other hand, I definitely would not have been open to renting my house out to 3 adults and 2 children in a home that only has 1 tiny bathroom! And I can't help but feel like they were planning this from the beginning and perhaps were attempting to avoid a background check for the boyfriend?? In any case, as this is my very first rental, your input is GREATLY appreciated! Thank you!

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Investor · Philadelphia, PA · Member since 2015 · 3k+ posts · 3k+ votes
9y

This could end badly. What happens if they break up and tenants move out leaving boyfriend and kids behind, not paying rent?

Meet with them. Offer to screen him and add him to the lease, along with the appropriate rent increase.

Other wise they are in breech of lease....

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  • Real Estate Broker · Chicago, IL · Member since 2015 · 531 posts · 266 votes
    9y

    If they pay their rent on time and take care of the property, how is this hurting you? 

  • Nicole A.Pro Member
    Rental Property Investor · Baltimore County Maryland and Tampa Florida · Member since 2013 · 2k+ posts · 2k+ votes
    9y

    Honestly, if they are otherwise great tenants paying rent on time and keeping the place in great shape and you're receiving no complaints, just let it slide. It's not worth your time to get ruffled feathers about when all is well. Others might disagree with me. In the end, this is up to you to decide.

  • Tuscaloosa, AL · Member since 2016 · 17 posts · 12 votes
    9y

    @Brad Crosby Unless you are renting per bedroom I don't understand why it's a big deal if they are paying the rent on time, keeping the place clean, and are good tenants.

  • Lender · Ogden, UT · Member since 2016 · 9 posts · 4 votes
    9y

    Thank you for the quick responses! I totally agree that it's not worth worrying over every little thing that could go wrong, but since I'm new I guess that's why I tend to worry more. I'm fine to let it go and address it when (if) it becomes an issue, but I guess another question would be if I have any legal complications with them in the future, am I somehow setting precedence or anything like that by allowing this to go on? Or am I taking on additional liability by having the kids living there (kids slipping and falling and tenant suing me, etc.?)

  • Real Estate Investor · Minneapolis, MN · Member since 2016 · 9 posts · 1 vote
    9y

    Thanks for bringing this up. I'm curious if you ended up letting this be or not? I have a similar situation but am aware of it due to other tenant complainting, so not sure how to proceed. Would love to hear how this is progressing for you. Thanks!

  • Investor · Philadelphia, PA · Member since 2015 · 3k+ posts · 3k+ votes
    9y

    This could end badly. What happens if they break up and tenants move out leaving boyfriend and kids behind, not paying rent?

    Meet with them. Offer to screen him and add him to the lease, along with the appropriate rent increase.

    Other wise they are in breech of lease....

  • Investor · Milford, CT · Member since 2012 · 592 posts · 285 votes
    9y

    I'd do what Max suggested. At the very least get anyone over 18 on the lease ASAP

  • Investor · San Francisco, CA · Member since 2016 · 314 posts · 153 votes
    9y

    You need to lookup what happens to guests of tenants after they stay a certain number of days. If you have knowledge of it and there's an automatic "tenants rights after N days" you need to make sure they're out before the N days are up, or you'll automatically have a new tenant. This depends entirely on your local laws and how friendly they are to you. 

    If you live in an area that has easy evictions you can afford to be more lax about it. If you live in an area like CA where evictions are tough and there are very strong tenant's rights...you want them out asap before they become tenants by default

  • Real Estate Investor · Williamson County, TX · Member since 2011 · 1k+ posts · 961 votes
    9y
    My lease lists all occupants. I would not ignore the "extra occupants"...give an inch you risk them taking a mile. If you choose to alow more occupants then the rent should go up for the extra wear and tear. 5-10%? You said yourself you would not have rented to 5 unrelated tenants in a 3-1. That is a reasonable business policy....you are running a business.
  • Real Estate Investor · Sacramento, CA · Member since 2016 · 32 posts · 36 votes
    9y

    My (limited) understanding is that charging rent on a per person basis opens you up to lawsuits for violating fair housing  laws on familial status.

  • Lender · Ogden, UT · Member since 2016 · 9 posts · 4 votes
    9y

    Wow, great advice. Thanks for responding! So quick update, I have just let it be for the time being, and have not had any issues except that the other leesee has asked about his cousin moving in in the Spring, which I declined. They have really been good tenants so far. Your recent responses, however, have caused me to reconsider. Thanks @Wes Brand, I will look up my local laws and make sure I not going to be in trouble there first, then I think I will take @Max T. advice and meet with them and require him to be screened and added to the lease at the very least, however I may just decide to request they leave, since more people = more wear and tear and I do agree with @Jeff G. that it would be unwise to try and increase rent. I can foresee other problems coming from this now that I think about it. The other tenant may be upset if he has kept his part clean and organized but receives less of his security deposit back due to damage/wear from the other tenant's bf's kids. I also appreciate @Marian Smith for your comment. You're right, this is a business. At times I find myself in agreeance with Brandon Turner when he says he's not good at managing people because he's too nice. I should maybe consider taking his advice and delegating the management side of this out in the future.

    OK so now for another question, if you'd all be so kind. How would I go about this the most tactful way? Official letter specifically requesting he and the kids vacate within X amount of days, general letter reminding them that live-in guest are not allowed and they will be found to be in breach of contract if this is not the case, etc., or do I just visit with them and ask them about what's going on? Is it wise to communicate this sort of thing over email so I have evidence of when it was sent, or is it better to mail it and just keep a log? Thanks! 

  • Residential Real Estate Broker · Raleigh, NC · Member since 2016 · 36 posts · 17 votes
    9y

    The best way to meet with them at this point is however you are most comfortable do it. Because it has to be done and done quickly. So decide how you feel you can get it done the quickest. Simple and fast at this point just rip the band aid off. 

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