I have tenants that are currently in a 1 year lease that expires in July. They have approached me to ask if there friend can live with them until their lease is up. I (landlord) pay for water, garbage, sewer for utilities on their side. The only one I am really worried about is water as the other two utilities are fixed.
Here are the things I have brainstormed for this to work. Please share any other thoughts that I may be missing.
1. Asking for an increase in monthly rent due to water utilities.
2. Having the new tenant complete a background check. (tenant pays).
3. Creating an addendum to the lease to have his name on it.
Please let me know if you would do anything differently. Also, if you have any good/easy/affordable background check companies to recommend, I will take it.
I would definitely require the new tenant to apply and qualify to meet the same qualifications as your current tenant. It may be hard to increase the rent without a notice and a new lease agreement (depending on your state laws), but you can do an addendum that any increase in the water bill will be forwarded to the tenant.
Mysmartmove.com is a good choice for credit and background checks.
I would definitely require the new tenant to apply and qualify to meet the same qualifications as your current tenant. It may be hard to increase the rent without a notice and a new lease agreement (depending on your state laws), but you can do an addendum that any increase in the water bill will be forwarded to the tenant.
Mysmartmove.com is a good choice for credit and background checks.
If all parties to the lease agree, you can terminate the current lease and enter into a new lease that includes the friend. This is much cleaner than doing an addendum.
Make sure all parties understand that the new tenant will be added to the lease as "jointly and severally liable" with the same rights and responsibilities as the current tenant. You may choose to raise the rent or change other terms of the rental agreement at this time as well.
Definitely require an application and background check of the friend. Cozy has worked well for us.
Draw up a new lease with all three on it each equally responsible for the entire rent, Screen as usual and increase the rent by 50%. If they agree win/win. If they do not agree no loss to you. Make them pay since you are taking o the additional risk.
I would prefer they not move in a friend which is the reason for the 50% rent increase but will accept the risk for a significant increase.
If they are wanting to change the terms of the tenancy, then you can have them sign a new lease with increased rent. as @Marcia Maynard stated, anything is negotiable as long as it's mutual. But @Thomas S., I would not make them equally responsible. I would make them "jointly and severally" responsible, meaning it doesn't matter who leaves, each is responsible for the full amount of the rent. If you only make them equally responsible, then one can skip and the others will only be liable for their portion.