my tenants had little credit, low scores and unconventional pay stubs so they used a co-applicant with better score and stable pay stub to secure the lease, i suspect this person never moved in, nor ever planned to move in.
is this a violation of their lease?
how can i determine whether or not the 3rd applicant lives there?
if she doesn't, is it enough to terminate their lease agreement early?
I once had a 1BR, rented to one person and he never moved in either. He maybe used it several days a month, goes home to mom for dinner, and sleeps there. Turns out he's a corrupt cop, collects payoffs, needing a hangout for his gang to split the loot. He pays me in cash (which I hate) but the rent includes utilities and my utility bill gone down tremendously.
Coming to think of it, I did rent to 2 roommates once, one of them moved in. The other had a change of circumstances, and told his roommate to find a new roommate. His roommate never got around to finding one, and the other guy didn't mind covering the rent in the meantime. Time flies, before we realized it, a year had pass, so they moved and I found myself a new tenant. Same as the other case, I cover utilities, and usage was low, and the place looked like it's in move in condition as the roommate who lived there was hardly ever there either due to his job.
Besides not violating the lease, in my case, as landlord, I came out ahead. The lease only specifies how much rent they have to pay, when it's due, but says nothing technically above how many days they stay there, and that the landlord takes attendance. They only do daily headcounts down at the local penitentiary.
I hate to be harsh but What on earth do you mean you suspect this and that ? Is it the person on the lease or not ? Do you screen or just let any idiot live there . Seems You don’t live near there do you . Do You have any idea what’s happening with your investment. Your going to have to be more involved or your going to have a difficult experience landlording . They are ripping you off before you even got started with them
Post your 24 hr notice and do a inspection. You should be able to tell how many are living there. I would suspect that if the qualified applicant is not living in though unit and contributing to the rent your tenant will likely soon default on the rent and you will end up evicting anyway.
Some landlords require non-related roommates to all qualify individually so if someone breaks up or moves out the remaining one has the ability to pay... for next time. I can understand wanting to evict because you feel they lied to you and you can no longer trust them. Depending upon your lease and your location you may need to wait until they actually don’t pay to evict. Have the eviction for non-payment rules for your area handy around the first.
Seems similar to a parent co-signing on a lease for their college kid 3 states away, the parents aren’t going to live there but they are still responsible for the lease.
Unless you mean to say that this “co-applicant” never existed. In that case, yes you probably have an issue because your tenants probably can’t meet your income requirement on their own, correct?
I'm curious as to whether the "co-applicant" was just a co-signer/guarantor or if they were signing to become an occupant. As Tyler said, if they were just co-signing then they were never planning on moving in. Knowing what your lease says could help to provide some insight as well.
I don't see the problem.... assuming they pay rent etc. It's going to cost you more time and effort to kick them out for something like this than it's worth.
Now if they don't pay rent on time etc... then you have a real reason to kick them out and it'll be worth the time/effort. You're a landlord, but not a detective to see how long/little someone ON THE LEASE is actually there.
As others have said, I don't think they are in breach of your contract - but it would definitely raise my antennae if this were me and would keep a close eye on that unit. My lease provides for periodic safety inspections. I think I would do what @Thomas S. suggested and do an inspection a month or two after their move in.
I might also casually mention during your inspection, "hey - whatever happened to John, did his situation change?" Then shut up and listen. You'll quickly learn by their body language whether there was a plan to defraud you the entire time or if there is a social dynamic that came in to play (which they may very well readily explain if that's the case).
Good points, I agree except to reiterate it's not "ok as long as the check clears." If the applicants are straw applicants or non-existent then the remaining tenants might not meet the income requirement and/or you could end up with a situation where a straw applicant has enabled criminal elements to occupy the unit.
Sally, Joe and Eric apply for your unit, they pass and you rent to them.
Later you find out:
Sally and Joe moved in with Bob.
Eric isn't a real person, he is a made up person, a stole identity basically, provided to you to pass the application screening.
and
You find out that Bob is setting up a meth lab in the basement of your unit.
I don't think that's ok as long as the checks clear.
I’ve seen many a house for sale that was a rental turned into a grow house or garages wirh grow rooms where tenants have illegally installed their own 220v electric.
Former co-worker had a 4bd 2 ba rental house converted into a grow op and cook op, luckily her insurance covered the repairs... it’s not so uncommon as to say it’s better to run your business under the “as long as the checks clear I’m happy” technique.