Anyone living in my rental property, who is legally an adult, must be listed on and sign the lease.
It’s a simple rule that I always follow, and it has never steered me wrong.
This is going to sound harsh, but I don’t really care if it’s just a college kid, home for the summer, or an elderly woman who’s moving back in with her daughter. I’ve heard all the excuses in the book, but it all comes downs to liability and my ability to collect rent.
I refer to long-term guests as “rogue tenants.”
Rogue tenants are individuals who have taken up residence in my property without approval or permission, and perhaps even changed their mailing address to receive mail at my rental property.
Liability and Accountability
If they are not on the lease, then they are not subject to the terms and conditions therein, and I cannot hold them accountable for rent. That’s a big problem.
Most of the time, they move-in under the assumption that they are only going to be visiting for a week or two. Before you know it, they have been living there for five months, never having received prior approval. They think of themselves as “long-term guests”.
Unfortunately, the words “long-term” and “guest” are contradictory.
Rogue tenants are not necessarily bad, they just need to be documented and accountable to the terms of the lease. After all, I do want my tenants to be happy. (tweetable?)
Whenever this situation arises, my answer is always the same:
“If you are an adult, living in my property, I need to know who you are – which is why you need to fill out an application – and that you will be jointly and severally liable for rent and damages – which is why you sign a lease.”
I believe that if I treat my tenants like adults, they will behave as such.
Use of Premises
To accomplish this, I use a rock-solid lease, and stick to it. The moment I deviate from enforcing any part of the lease, I set a precedent that I will waive other lease terms, such as late fees or eviction.
In my lease, I use a clause entitled “Use of Premises” to limit the number of people allowed to occupy the dwelling and to explain the difference between a tenant and a guest.
USE OF PREMISES.
The Premises shall be used and occupied by Tenant(s), for no more than FIVE (5) persons exclusively, as a private individual dwelling, and no part of the Premises shall be used at any time during the term of this Agreement by Tenant(s) for the purpose of carrying on any business, profession, or trade of any kind, or for any purpose other than private dwelling.
Tenant(s) shall not allow any other person, other than Tenant’s immediate family or transient relatives and friends who are guests of Tenant(s), to use or occupy the Premises without first obtaining Landlord’s written consent to such use. Any guest staying in the property more than 2 weeks in any 6 month period will be considered a tenant, rather than a guest, and must be added in the lease agreement. Landlord may also increase the rent at any such time that a new tenant is added to the lease or premise.
Tenant(s) and guest(s) shall comply with any and all laws, ordinances, rules and orders of any and all governmental or quasi-governmental authorities affecting the cleanliness, use, occupancy and preservation of the Premises.
As you can imagine, some tenants want to hide their guests simply because they don’t want me to raise the rent.
In fact, I rarely ever raise the rent when a college kid comes home, but I want to option to do so, just in case my individual tenant suddenly decides to move in seven extended family members.
Refusal to Sign
If a rogue tenant or long-term guests refuse to sign the lease, I have the option to terminate the lease, based the original tenants violation of the provision listed above.
The main purpose is not to raise the rent, but rather to have everyone accounted for and liable for the rent in case the original tenants abandon the lease.
Most tenants (rogue or otherwise) usually comply with signing the lease, especially if there is no extra expense.
Common Examples of Rogue Tenants
- SITUATION: Empty-nesters often want to downsize, so they sell their house and move into my rental. Then, their youngest either drops out of school and moves back in, or simply comes home for the summer.
- MY RESPONSE: As long as this does not violate any county occupancy ordinances, or increase utility usage that I pay for, I simply create a lease addendum that adds the additional occupant to the lease, by name, and then I have everyone sign it.
Sick or Elderly Parents
- SITUATION: An elderly parent takes a bad fall and now needs regular assistance. The children (my tenants) quickly volunteer to take mom in, without considering either the landlord or the lease.
- MY RESPONSE: Because mom is at higher risk of accidents and injury, I especially want to make sure she signs the lease, not so much for the rent collection aspect, but just so she acknowledges her responsibility to obtain her own renter’s liability and medical insurance. The sad truth is that landlords can be held responsible for the personal injuries of tenants, but some of that risk is mitigated if they sign a lease. Again, as long as this doesn’t violate any county occupancy ordinances, I think family should help each other and stick together.
- SITUATION: Sometimes a couple will want to rent my unit together, but only one of them has an income. They assume that only the person who is qualifying for the lease needs to be listed.
- MY RESPONSE: I’m all for true love, but I’m not stupid. Even though the couple might qualify based solely on one income, I still need both individuals to fill out separate applications and sign the lease, because they are both occupants. This protects my rental income if the couple breaks up or gets divorced.
The Perpetual Overnight Boyfriend of Girlfriend
- SITUATION: Three days after your new tenant moves in, the neighbors call and say “I thought you only had one new tenant?!?” When you approach your tenant, she says, “Oh, that’s just my boyfriend. He was fired from DQ, and doesn’t have any money, so he’s staying with me until he can get on his feet.“
- MY RESPONSE: In response, I simply point to the lease and say, “That’s fine, but if it’s more than two weeks, I’ll need him to fill out an application and sign the lease.“
The Forbidden Sublet
- SITUATION: If subletting is prohibited in the lease, or if there is an extra fee involved, sometimes tenants will try to hide their subletter. Sometimes jobs change, or they need to leave, but they don’t want to pay the early termination fee or the subletting fee.
- MY RESPONSE: If I learn that a subletter has moved in without my approval, I usually just require them to pay the one-time subletting fee (mentioned in the lease), under threat of a lease violation and subsequent termination. However, if the subletter wants to live there for a while, I might try to release the old tenant, and sign a new lease with the subletter (who then becomes the leasee). Therefore, I sign a longer tenancy, the original tenant is released, the new tenant doesn’t have to hide from me. Everyone is happy.
Share Your Story!
I’d love to hear your stories about long-term guests and rogue tenants. How did you handle them?
Please share in the comments below!