Landlord Quick Tip
In some areas where the economy has not “stimulated”, many tenants who rented as “singles” are approaching their landlord about taking in a roommate…..landlords who say NO face lost rent and a vacancy depending on their tenant’s financial situation so having a policy to accommodate their tenants is a MUST.
Provide tenants with applications and require that their roommate complete it and return it to you. Charge any application or credit check fee as appropriate. Screen the applicant and if they pass, offer your tenant the option of approving them as an AUTHORIZED OCCUPANT under the current lease OR offer to re-write the lease and place them on record as a tenant who is jointly and severally responsible for the remainder of the lease term. I charge a fee for this lease re-write.
Option #1 allows your tenant to remain in control of the rented dwelling in case their new roommate does not work out.
Option #2 allows the landlord or property manager to now have 2 tenants on the hook for the rent AND responsibilities under the lease terms.
The security deposit at the inception of the lease remains the possession of the original tenant and the roommate should pay any deposit directly to the current tenant and they handle any disposition of the deposits between themselves. The landlord/property manager is not involved until the end of the lease or the unit is entirely vacant so that an inspection can be conducted.
See last week’s Landlord Quick Tip.
American Apartment Owners Association offers discounts for landlords on products and services related to your rental investment, including real estate forms, tenant debt collection, tenant background checks, insurance and financing. Find out more at www.joinaaoa.org.
To subscribe to our blog, click here.
Accessibility