Picture this: you put up an
However, a few months later, your new tenant suggests allowing them to bring in a roommate to help split the bills so they can continue to meet their monthly payments. It sounds like a great idea so what could go wrong?
Think twice before adding another tenant to an existing lease. As straightforward as it seems, many landlords often have to deal with financial and legal repercussions they made no arrangements to tackle.
Thus, allowing your current renter to bring in a roommate or sublet the rental could cost you more in the long run. Read on below to make a more informed decision before adding a tenant to an existing lease.
IMAGE: PEXELS
Complying With Local Laws When Adding A New Tenant
Research Local Laws
Ensure you comply with local laws and regulations before adding a new tenant to your lease agreement. Before making any definitive decisions, research your jurisdiction’s policies on occupancy limits and tenant rights.
For instance, if you’ve already reached the maximum capacity for your property type, bringing someone to live in the same house would be illegal.
Also, if the new tenant wants to modify the building or run a business from the apartment, you have to ensure they obtain the necessary permits.
Update The Lease Agreement
Create a formal amendment to your existing lease that includes the new tenant’s information.
After you’ve confirmed that bringing in a new renter doesn’t violate local rental laws, discuss these possible changes with your property manager before adding a tenant to an existing lease. The last thing you want is not being able to hold a new tenant liable for damages or rent because their name doesn’t appear in the lease.
As a result, this step is not only a legal necessity, it’s a form of protection for your business.
How Adding A Tenant Might Affect Shared Responsibilities?
Sharing Financial Responsibilities
Establish clear agreements on how to divide rent to avoid misleading assumptions. Most landlords tend to charge more when a tenant brings in another renter because of the increased risk of tenant damage and wear and tear on the facilities.
Despite that hike, rent is often cheaper for the existing tenant. However, it’s still crucial to outline how they’re expected to divide and pay the new fee.
Sharing Tenant Duties
Consider that your utility bill is bound to go up when you have an extra person or two living in your rental. As a result, if you pay for utilities like electricity, water, and internet, you may have to calculate the added cost of an additional occupant.
Likewise, tenants are responsible for minor repairs and maintenance like changing light bulbs or mowing the lawn. In that case, you should facilitate an open discussion on how to divide these duties so no one feels cheated.
You should also have a plan for how tenants…