Adult ‘occupant’ options.

[Christopher Dahl]

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.

[Lynnette E.]

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.

[Christopher Dahl]

My main concerns: 

1. Occupancy addendum properly states that he is required to leave with tenants.

I would think this could just be stated in occupancy agreement and if he wants to apply to ‘sublet’ entire property, then he can do full application?

2. He doesn’t have any major criminal offenses or property damage history.

I agree about proceeding with background check. However, If he is undocumented, can he still fill out a electronic background check or will he not even be able to complete the application?

3. That I don’t break any state/local laws regarding undocumented migrants. 

I think I would be ok if he is undocumented as long as I don’t break any laws in the process.
Not sure where to find that info. Also can I legally require tenants to put down an additional security deposit if occupant has history of property damage or no background? 

[Lynnette E.]

Extra security deposits depend on where the property is located.  Some places have limits, others do not.

Undocumented folks do have the  ability to do background checks.  Many have been in the US for decades.  Just have them say where they were living and run the checks for the areas they were in.

They may or may not have credit scores that reflect their true credit.  Some unpaid things may not be reported (due to no SSN, or private loans/bills) and their income may not be reported (paid under the table or under false id).  However they may have a credit score, your never know.  They may also have a tax id if no SSN.  

Personally, I would just say he is an occupant under the other folks lease.  When they leave he must leave.  If the other tenants leave and he wants to stay, then you can decide if you want to enter into a lease with him.  By then you may know more about him.  Cross that bridge if you get to it.  For now, just follow the first sentence in this paragraph.

Also, you should have some sort of signed agreement that if he vacated the property for more than say 2 weeks and rent is not paid that you can remove his stuff and...whatever...call a friend he identifies to get it, place it in a storage unit and mail him or a friend the combination.  Just do not get stuck storing his stuff when he is being sent by ICE ...somewhere...  Maybe have him pay a one month storage fee  upfront in case you have to go there, refundable if he takes his stuff when he leaves.  And make sure this is legal where you live.