Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
General Landlording & Rental Properties
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 5 years ago on . Most recent reply

User Stats

3
Posts
0
Votes
Eric Holm
0
Votes |
3
Posts

Renter has more people in house then original lease agreement

Eric Holm
Posted

I rented a 2 bedroom, 1&1/2 bath duplex to single mom and daughter 3 1/2 years ago for 975 a month. She is now on a month by month rental agreement. Last Sept, her dad and and an invalid man he cares for moved in.

It was to be a temporary situation while on a waiting list for low income senior housing. I told renter to pay 20.00 more per month for added water and septic. Total then was 995.   Im out of the area for 8 months a out of the year and did not keep up with what my market value is supposed to be. It is 1,550 per month per unit.... a place identical to mine. Currently, The dad and invalid are still there. October 1, I raised the rent to 1,045.  And now, I find out a boyfriend and his child are also there. The dad told me that it too is just temporary til the end of the month when the boyfriend will move into his mother’s winter house somewhere nearby.  I’m planning to send the renter notice to comply within 30 days to have no more than 4 people maximum living there.  And since our original lease agreement was a single mom and daughter then come December 1 , if 4 people are living there,I will be raising the rent again closer to market value.  Does anyone see a problem with me doing this?  What would you do?

Most Popular Reply

User Stats

3,601
Posts
4,335
Votes
Marcia Maynard
  • Investor
  • Vancouver, WA
4,335
Votes |
3,601
Posts
Marcia Maynard
  • Investor
  • Vancouver, WA
Replied

It is not uncommon for tenants to allow other people into their homes to stay, for the short term or for the long term.
That's why a solid rental agreement with clauses that cover Occupancy, Guests, and Unauthorized Occupants is essential.
I would begin with a conversation with the tenant of record about your concerns and encourage voluntary compliance with the terms of the rental agreement, provided your rental agreement covers such.  You can also serve a Notice to Comply (or the equivalent).

Two persons per bedroom is reasonable. HUD allows two per bedroom plus one. If you pay for utilities, you would be justified in charging a per person utility fee, as usage would be greater. Decide how much you want to charge and check the landlord-tenant laws for your jurisdiction as to how often you can raise rent and by what percentage.

The father and the man he cares for are essentially your tenants now (in most jurisdictions), as they have stayed long enough to establish residency (more than 30 days), and you knew they were still living there and sanctioned it by accepting the extra utility money. The original tenant may be unaware that they may have tenant rights now equal to her own.

Do you know how long ago the boyfriend and his child moved in? Has it been more than a month? If not, are they still within the time frame to be considered guests? Or have they too established residency?  Better get them out before they do.

Bottom line. It's your property, but their home. Tread carefully. Everything's negotiable, start there and try for a win-win. If unsuccessful, then proceed with legal notices. The original tenant needs to do what she can to comply with the terms of your rental agreement or risk losing her home. With a M2M rental agreement, you have a strong position. Good luck!

Loading replies...