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Updated over 3 years ago on . Most recent reply

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42
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Cory Melious
  • Investor
  • Hunterdon County, NJ
5
Votes |
42
Posts

How to treat additional tenants on the lease?

Cory Melious
  • Investor
  • Hunterdon County, NJ
Posted
Hi everyone. I'm trying to add language to my lease addendum that clearly states additional tenants. We have a tenant moving out who is the sole person on the lease. Evidently, they had their brother and girlfriend living with them the whole time, which puts additional wear and tear on the apartment. Since I didn't have any language in the lease prior to them being there, I'm trying to tidy the next one up so I'm covered for more rent and add the new people to the lease.

Do you:
-Add additional rent? If so how much?

-Add them to the lease? 

- Collect a background/credit check? How do you suggest the language be written to cover this?

-How do you deny them if they fail?

  • Cory Melious
  • Most Popular Reply

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    28,112
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    Nathan Gesner
    • Real Estate Broker
    • Cody, WY
    41,130
    Votes |
    28,112
    Posts
    Nathan Gesner
    • Real Estate Broker
    • Cody, WY
    ModeratorReplied

    From my lease: 

    OCCUPANCY. The Premises shall be occupied by the Tenants named above and _____ dependents under 18 years of age. No
    other individuals are authorized to reside on the Premises. Guests may stay on the Premises for no more than a combined total of
    eight (8) days per month. Unauthorized occupants will result in a fine of $50 per day. Tenant may not add / remove Tenant or
    dependents without Landlord permission. Contact office for instructions.

    If they want to add someone, they must notify us and submit an application. if the application is approved, they pay a $50 fee and the new tenant has to review and sign the lease. If the application is denied, we don't let them move in.

    Everyone aged 18 or older should complete an application, pay the fee, and be screened, even if they are not contributing to the rent. You don't want mom and dad moving in with their drug-dealing 21-year-old.

    I only increase the rent if utilities are included because an extra person means extra utility use.

    You should have a generic denial letter that is used for everyone, no emotion or excuses. Just tell them they didn't meet your criteria and move on. search for "adverse action letter" or see if your screening system provides one. It also helps to have your approval/denial terms in writing so you apply them consistently and can answer questions quickly.

    • Nathan Gesner
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