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I am a new real estate investor and just bought a rental property in the Houston Texas area. One of my tenants rented the 2 bedroom townhouse themselves and I found is now sleeping in the living room and renting out the other 2 rooms to other people and did not inform me about this. The main tenant does not cause any disturbance and always pays the rent on time. The other people also are working students and do not cause any disturbance noticeable thus far.
I am just wondering what I should do in this case and what actions I should take right now, if the tenant does not pay the rent on time, or if the other people cause disturbances. I have heard from other real estate investors that this is very common in big working/college cities and that many students rent out 1-3 bedroom apartments and then “sublease” the other rooms (often without the landlord's permission). I just want to know what the landlord should do if it is done without permission (if anything) and who is responsible in this case.
Thank you.
The thing to remember here is that just paying the rent on time & not causing disturbances that you know of doesn't make this a "good" tenant. There's a lease & this tenant (probably) violated the conditions of it. Full stop.
Boot tenants, then replace - you don't sign a new contract with someone who doesn't respect your existing contract.
For all you know they moved in sex-offenders or criminal deadbeats without your knowledge.
At the very least, your tenant just handed the keys to a $xxx,xxx property over to people you don't know.
That's a *bad* tenant, not a "good" one & the only acceptable solution is evicting them.
If the only criteria for being a "good" tenant was paying the rent, then landlords would all be fighting to get marijuana grow houses as tenants. They usually pay the rent in full, in advance. And, "free upgrades" to the electrical system & hvac system.. ��
Last edited by Zippyman; 07-12-2018 at 07:04 PM..
Reason: Spelling
Can you talk to your tenant and then work something out where you add the other two "squatters" to the lease so now everyone's name is on the lease?
If you can get all 3 names on the lease that's the best thing. That way you any of them if they break the lease. If it's a condo and a person is living in the living room and renting the other rooms that may be an issue for the HOA.
More important than paying on time, what is the condition of the property? I would keep a real close eye on that before offering to put poor shepherds on the lease.
More important than paying on time, what is the condition of the property? I would keep a real close eye on that before offering to put poor shepherds on the lease.
Agreed. Make sure the other 2 tenants have been vetted before you consider putting them on the lease. For all you know, they may have some girlfriends or friends they plan to have move in with them or they're one straw away from being unemployed.
People with cramped up multiple roommates, with one living in a living room, aren't exactly known to have their fiances and life in order.
The big problem is the main tenant didn't even tell you, that's extremely rude.
as some posters above have alluded to re non-payment of rent and having to evict all of the parties …
here's the crux of the issue for you as a landlord:
the people who have now established a legal tenancy in your house are not accountable to you for any rent because they are not on a lease agreement with you.
even if your leased tenant leaves, those "guest" tenants do not need to leave. Nor do they owe you any rent. You may have a difficult eviction process and months ahead before you get possession of your place again.
PS: if those folk damage your house, you find that the it's a futile effort to recovery any money from them. A judgement is but a piece of paper without any real value unless you can get money from them.
Many standard lease forms limit how long a guest can stay before they need to be on the lease. If the one the OP is using does not have that, time to change that.
Need to talk with your tenant and explain that everyone living at condo needs to be on the lease. You need names and social security numbers and a check for the cost to run credit and legal background checks.
There is often an additional charge for additional tenants as well. More wear and tear on the apartment.
They are likely all wonderful people just trying to save money.
But nefarious characters who would never be able to rent a place on their own often move in as unregistered "roommates."
I am a new real estate investor and just bought a rental property in the Houston Texas area. One of my tenants rented the 2 bedroom townhouse themselves and I found is now sleeping in the living room and renting out the other 2 rooms to other people and did not inform me about this. The main tenant does not cause any disturbance and always pays the rent on time. The other people also are working students and do not cause any disturbance noticeable thus far.
I am just wondering what I should do in this case and what actions I should take right now, if the tenant does not pay the rent on time, or if the other people cause disturbances. I have heard from other real estate investors that this is very common in big working/college cities and that many students rent out 1-3 bedroom apartments and then “sublease” the other rooms (often without the landlord's permission). I just want to know what the landlord should do if it is done without permission (if anything) and who is responsible in this case.
Thank you.
How do you know this is even going on? Who spilled the beans?
Your lease should state that you have to approve: #1. Subletting & # 2. Those who are subletting.
What it sounds like is that your "main" tenant is making money off of your rental. Sweet deal for the shyster. This is common in Texas?
Tell your tenant that you are going to start the eviction process UNLESS the idiot (idiots?) living in the bedrooms sign a lease with you.
Make your tenant more than aware that all damages incurred by those who they are "leasing to" will be their sole responsibility to pay at the end of the lease.
There are laws against subletting. Three people do more wear and tear than one. Are you paying the utilities?
If you don't care that the extra people are living there, discuss that with your tenant, but change the pay structure. Charge the roommates. That extra money belongs to you, not your tenant. If the tenant doesn't agree, evict. The law is on your side here.
If you're alright with the arrangement amend the lease and add them.
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