How to handle Roommates on a lease

[Matt Lord]

I'm a few months into my first rental property. Everything has been perfect. The tenant is great. Shes a young kid right out of college with a good stable job. She asked if her cousin can move in with her in a few months once she graduates from college and finds a job. I have no issues with this. What's the best way to go about adding the cousin to the lease? I have a roommate addendum from one of the BP books I purchased. So I assume I'll just use that. But the real question is how to handle the situation if one of them moves out. 

This would also apply to any future properties I purchase. I really don't care if 2-3 people want to split their living costs in one of my units as long as they all meet the requirements. But how do you hold each individual accountable in the lease? Do you have them all sign 1 lease and share the financial obligation? Or do you have each person sign a separate lease? I guess none of it really matters until one roommate wants out. What if one leaves and the one that wants to stay can't afford the rent? I'm sure this is an easy issue, I just don't know the answer. 

[Rick Beno]

Good questions, Matt.  And not that easy, as I am sure landlords to it in very different ways.  The simplest is to have both tenants qualify financially to pay the rent without a roommate.  In other words, vet each as if they were going to live there by themselves.  If they don't qualify to pay the full rent by themselves, then they are not approved to sign the lease.  

Another option is to have a "primary leaseholder" who takes responsibility for the full rent payment irrelevant of what the roommate situation is.  The other roommates are listed on the lease as occupants and cannot stay in the unit without the leaseholder.  If the leaseholder goes, then the occupants must go with her.