Every landlord who rents out a property to a tenant should require every adult living in the rental property to be listed on the lease agreement. Each of the adults listed on the lease agreement should also sign that contract. This is a basic requirement of a lease, and it is one that you should not overlook for the sake of your own liability.
There are many situations in which a long-term guest may begin living in your rental property without being on the lease agreement. The adult child of a tenant may move back in with mom and dad in your rental property during the summer or after finishing college. The parent of a tenant may move in to your rental property because they need more care. A friend may move in with tenants to help share the burden of the rent. Regardless of the circumstances, each of these people need to be listed on the lease agreement. If the person is not listed on the lease agreement or has not signed the lease agreement, then they are not held responsible to the conditions of that lease agreement. In addition, you cannot hold them responsible for the rent.
In many cases, the guest may begin staying at your rental property with the intention of it being a temporary and short-term arrangement. However, it is far too easy and common for that stay to drag on longer than planned, and suddenly you have an unofficial new tenant who is not identified anywhere on the lease. Days and weeks turn into months, and the guest is no longer a guest, but now a tenant. One of the risks in this situation is that the party who is listed on the lease will move out and leave the unlisted party to pay the rent. However, you cannot enforce the lease or collect payment from someone who isn’t listed on the lease.
Remember that this is nothing personal. If another person is going to move in with the current tenants, that’s fine; they just need to inform you of this and be added to the lease. As a landlord, you need to be consistent in your enforcement of this policy. If you let this issue slide, then tenants will question whether you will enforce other provisions of the lease, such as the rent deadline.
Use an airtight lease that clearly outlines your policies in regard to tenants and guests. The lease should specifically state how many people are permitted to occupy the premises and the names of all adults living on the premises. In addition, the lease should clarify the difference between a guest and a tenant. Typically, a guest who stays in the rental property for more than two weeks in a six month period is considered a tenant rather than a guest. Each landlord can specify his own terms, as long as you use the same terms consistently on all of your lease agreements. Landlords can also retain the right to increase the rent if another tenant moves onto the premises.
If you discover that there is an undeclared tenant living in your rental property, you should require them to be added to the lease and sign the lease. In the event that they refuse to sign the lease, you can evict the tenants, as this is a violation of the original terms of the lease agreement.
For more information on managing your rental property, get in touch with McMath Realty. We offer property management services in Phoenix and all of Maricopa County of Arizona to assist landlords in the day-to-day realities of renting a property. https://mcmathrealty.com//contact.php