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Updated about 5 years ago on . Most recent reply

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Adult ‘occupant’ options.

Christopher Dahl
Posted

I just rented out a home to a family of 4. The unit has a sort of basement apartment, but it’s all one unit and can’t be rented as a second unit, but the whole house has legal occupancy limit of 8. Upon signing lease tenants mentioned to me that they might be interested in letting a family friend occupy the basement, and I said that would be fine (but lease says no subletting without approval). I said we could just screen him and add him to lease. It’s only been about two weeks and they want him to move in, but they are balking at adding him to lease as they said he may not want to stay for entire lease term (which is 15 months) I’m not so much worried from a rent collecting perspective of having him on lease (i.e. making this person liable for rent), but i am a bit concerned about any other liabilities that I may not be aware of, from having an additional ‘rogue’ occupant. I’ve researched possibility of an occupant addendum which seems like a decent option that I would consider upon completion of background check. Is this a reasonable consideration? Any special clauses I should include?

On the other hand, I’m wondering if they are balking at background check more than lease. What if he refuses background check, or background check does turn up something questionable? Or what if he simply has no form of legal documentation to really even complete a background check even if he wanted to? Can I legally deny him occupancy? Even if I can, should I? Not sure what to do.

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Lynnette E.
  • Rental Property Investor
  • Tennessee
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Lynnette E.
  • Rental Property Investor
  • Tennessee
Replied

You can add him as an occupant, but definitely should have his full identification and do a complete background check.  Even if he is not responsible for the rent, you want to know if he is a risk to your property.  Was he evicted, and why?  Did a past landlord have damages that are documented in a court case?  Does he have a job, or will he be hanging out all day?  Will your house be listed on the registered sex offender's webpage?  Does he have a record for manu and selling drugs?  From you home in the future?

If he has no background because he is young or new to the country, that is your decision on if you allow it.  ICE generally does not kick in doors, if someone will open them:)  But you should find out what you can about a potential tenant.

Also, just FYI, sometimes people do not want to put someone on the lease because of their background, or because they are hiding from law enforcement or ICE or because they are subrenting your house.  If subrenting is possible, you need to stop that if your state will force you to honor the sublease if the tenants leave.

Protect yourself from this person staying if the tenants voluntarily leave.

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