3 bedroom rental - 3 roommates?

Question

I'm about to advertise a 3 bed/1 bath unit in an area that is typically rented by roommates (vs. families). I'm looking for advice on how to structure the lease if I do get roommate applicants that I anticipate getting. I've read on these forums about tenants moving out leaving the remaining roommates (and the landlord) in a quandary. I want to keep it as simple as possible. Any advice is appreciated.

Kelly N. · Answer

Screen them all, and use the "Joint and Several Liability" clause in your lease. Explain what it means- if they flake on the rent or damage the apartment, you are going to take the ones remaining to court, even if they aren't the problem.Spell out, in writing, your policy on one roommate leaving and another coming in- whether you prefer they sublet or just sign a new lease. The incoming tenant needs to fill out an app, pay the app fee, get screened before moving in. Have them sign an agreement with the tenants on your lease, make sure it states when they are moving in, who is moving out, and how they are handling the deposit.Sometimes, the change over of tenants is easy, sometimes it is a pain, it depends on how difficult they make it. You want to make it as easy as possible, that way they have no reason not to let you know who is living there...

Claude S. · Answer

Have a clause that states "joint and several liability" so that if one or two leave the remaining are still responsible for entire rent.

Kenneth Garrett · Answer

@Jim CranI do not like renting to three different tenants. Here is a thought. Put them all on the same lease, therefore if someone leaves the other two are responsible for making up the rent. I do this with my student housing. This way they self monitor themselves. Good Luck.

Jim Cran · Answer

So what's better, renting to families with destructive children or renting to younger singles. Sounds like a lose-lose to me.

Stephen E. · Answer

@Jim Cran If you rent to three unrelated room mates go in with your eyes open and expect to lose control of your property. One or more of them will move out and the remaining tenant may very well decide to move in alternates without your approval. Then what are you going to do? Here in Ontario tenants are allowed guests of whatever duration without the landlord's approval. You can see how that could become a problem. In Ohio you will have a stronger hand but the truth is that if they start swapping people in and out then as a practical matter pretty soon you will have no control over who lives there, what their backgrounds are, or what protections you might hope for against bad tenant behavior. Personally I would never rent to a group like this. There is too much to go wrong and not enough redress for a landlord should things head south. Good luck.

Jim Cran · Answer

Thank you all for your excellent advice. I feel more confident now than I did 24 hours ago. :-)

Frank Chin · Answer

I would check local zoning regulations.In some areas, they outlaw 3 unrelated people living together to discourage rooming houses. I owned a SFH rentals in a town on LI for many years. In this town, you don't park in front of other peoples homes. A tenant of mine had a beef with some tenants of a house down the street who park in front of his house and complained to the landlord.The landlord told him that people can park anywhere on a public street. My tenant told him, I know that, but you have illegal roomers renting rooms from you, and would you like me to report you? Well the landlord said, if it makes you happy, they will park somewhere else.I never checked the town zoning, I had rented this place to 3 roommates before, but I guess I've been forewarned.

Joe Splitrock · Answer

@Jim Cran require each applicant to submit separate applications and each pay an application fee. Require two good landlord references if all three can pass credit check and all 6 references pan out, go ahead and rent to them. Make it clear in the lease that they are jointly responsible for rent. Repeat it multiple times during application process and before lease signing. Also include a clause that nobody moves in without submitting an application and no subletting.

Chris Purcell · Answer

I've been doing the roommate thing for years.Screen them as you would any other property. Collect 3 months upfront. 60 day notice clauseMargins are higher if you're willing to deal with the micro-managing

Charlie Price · Answer

I've run roommate houses before. Don't run them any longer. Bigger headache then it was worth. There are pluses and minuses. I did them all on separate leases. Like $400-500 each. All utilities included. It was always a little challenging to find roommates that worked well together. And the "common" areas were always a challenge to keep clean. But it work out okay. Yes, I did run background checks separately for all parties.