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Updated almost 6 years ago, 01/10/2019
Should newly added Tenants Pay additional Deposits?
Happy New Year! I need help with something I'm about to do present to my current tenant. I have done my research and have learned that the tenant has unauthorized people living in the property. I plan to meet with the tenant Friday to discuss this and to offer a 2 possible solutions. Solution A. The individuals not on the lease will have to be properly vetted just as the original tenant was. If tenant is not in agreement with this, I will present her with a 30 day notice for ALL to vacate. Solution B. If the tenant does agree and wants all to remain, I will ask for a non-refundable application fee from each person. I do background checks via Smartmove so each individual would pay for this and have to qualify separately.
Now here's where I need help. The tenant has of course already paid a deposit upon move in 2 years ago. Since then rent has increased. Should I require a NEW deposit from each individual? I'm thinking this deposit would be equivalent to the current rent rate. Or should I required a deposit amount equal to what the original tenant paid? I was thinking that if new people qualify I would inform them via a new lease agreement signed by all that the deposits they provide would not be returned by me until ALL have vacated the property. If there's a parting of ways these individuals would have to work out their disagreements among themselves and whomever remains would have to provide a deposit refund to the person(s) who vacate.