Caught some of my tenants renting out rooms. What to do?

[Nathaniel Smith]

I am a new real estate investor and just bought a rental property in the Houston Texas area. One of my tenants rented the 2 bedroom townhouse themselves and I found is now sleeping in the living room and renting out the other 2 rooms to other people and did not inform me about this. The main tenant does not cause any disturbance and always pays the rent on time. The other people also are working students and do not cause any disturbance noticeable thus far.

I am just wondering what I should do in this case and what actions I should take if the tenant does not pay the rent on time or if the other people cause disturbances. I have heard from other real estate investors that this is very common in big college cities and that many students rent out 1-3 bedroom apartments and then “sublease” the other rooms. I just want to know what the landlord should do if it is done without permission (if anything) and who is responsible in this case.

Thank you.

[Bob Okenwa]

Inform your tenant that they are violating the lease (if you have actually have a no subletting clause in your lease) and tell them that they need to rectify the situation immediately or will face eviction for violation of the lease. 

You must enforce the rules firmly to your tenants or they will take advantage of your weakness and push the limits until you are forced to take action.