@Karen MargraveWith an extra seven (that's 50%) people, the wear and tear will greatly increase; there will be 50% more load on water and sewer systems; more laundry, etc.Your in a "lengthy eviction state", so, in your shoes, I would start the process immediately and issues he necessary notifications for non-compliance with the lease; if find a workable resolution, you can always halt the process.You could give them a deadline to have the numbers reduced (i.e.

i would not personally rent to people i know, it becomes a big mess if rent is late or overdue.

If they don't pay for the repairs, yes I will evict and it will come out of their sec. deposit and/or money judgement anyway.They have plenty of time to speak with their lawyer regarding the validity of the charges during the lengthy eviction process.

For an overdue update to this post:@Alexander Felice spot on. 

Also, I mentioned the lengthy amortization period in the same paragraph of that response you quoted.

In Baltimore if a house sits Vacant for more than a year it loses its multi family status and it can be a lengthy process (Some cases over a year) to get the status back.

You should have an attorney draft a partnership agreement based on a decently-lengthy discussion with them about the goals of the partnership, rights and responsibilities of the members, etc. 

Unfortunately in TN its quite lengthy and you're probably looking at three months if they push you.  

In the case of the landlord, like any other business, when a client (tenant) does not perform on their fiscal obligations, (i.e pay their rent on-time or kite a cheque) the landlord is injured by the lost opportunity over an above recovery of a dishonoured payment fee.With our commercial tenants - which are not governed by the Residential Tenancies Act, we assess a late fee ($50) and charge interest on overdue accounts at the rate of 1.75%/month.

You can see that the overdue column has a red dot meaning this account is way past due.  743 days past due to be exact, and the rent was $700.00.