Anyone experienced landlords here? Caught some of my tenants renting out rooms. Anything I should do?

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sngaw
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Anyone experienced landlords here? Caught some of my tenants renting out rooms. Anything I should do?

Post by sngaw » Thu Jul 12, 2018 4:12 pm

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.

ResearchMed
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Re: Anyone experienced landlords here? Caught some of my tenants renting out rooms. Anything I should do?

Post by ResearchMed » Thu Jul 12, 2018 4:54 pm

sngaw wrote:
Thu Jul 12, 2018 4:12 pm
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.
What does the lease say about whether subleasing is allowed, or number of "unrelated" adults living together (this might be a local regulation, rather than a lease issue)?

RM
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Carefreeap
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Re: Anyone experienced landlords here? Caught some of my tenants renting out rooms. Anything I should do?

Post by Carefreeap » Thu Jul 12, 2018 5:01 pm

ResearchMed wrote:
Thu Jul 12, 2018 4:54 pm
sngaw wrote:
Thu Jul 12, 2018 4:12 pm
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.
What does the lease say about whether subleasing is allowed, or number of "unrelated" adults living together (this might be a local regulation, rather than a lease issue)?

RM
+1

First lesson: Read and understand your lease and make a visit to your state's LL-Tenant website. Also you say this is a townhouse. You need to understand your HOA rules.

Personally I would not be o.k. with the situation as you screened and o.k. the current occupant but you have no idea who or what the rest of the other people are. Is this a month to month or a lease with term?

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goingup
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Re: Anyone experienced landlords here? Caught some of my tenants renting out rooms. Anything I should do?

Post by goingup » Thu Jul 12, 2018 5:19 pm

We have a property management company but I'll you why I would specify no sublets in the lease. As mentioned, you haven't screened the other 2 occupants. There will be additional wear and tear on your rental. These other 2 will have cars and likely overnight guests. If you want to tick off all your neighbors you can let this situation continue. When this happened at our rental, all tenants were asked to leave.

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knpstr
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Re: Anyone experienced landlords here? Caught some of my tenants renting out rooms. Anything I should do?

Post by knpstr » Thu Jul 12, 2018 6:12 pm

What does your lease say? That dictates your options.

Does it say subleasing is not allowed?
Does it dictate guest policy?
Does it say anything about unauthorized tenants?
Very little is needed to make a happy life; it is all within yourself, in your way of thinking. -Marcus Aurelius

Carefreeap
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Re: Anyone experienced landlords here? Caught some of my tenants renting out rooms. Anything I should do?

Post by Carefreeap » Thu Jul 12, 2018 6:13 pm

goingup wrote:
Thu Jul 12, 2018 5:19 pm
We have a property management company but I'll you why I would specify no sublets in the lease. As mentioned, you haven't screened the other 2 occupants. There will be additional wear and tear on your rental. These other 2 will have cars and likely overnight guests. If you want to tick off all your neighbors you can let this situation continue. When this happened at our rental, all tenants were asked to leave.
Which would be my inclination but we don't know what the lease says and we don't know the OP's market. I had a condo near a UC campus but would never rent to students even though I could have grossed a lot more. I didn't need the headache of revolving students and their boyfriends/girlfriends parties and maintenance/lack of maintenance issues. I saw what happened to unit across the way from mine. The owner bragged to me about how much money he was making. I smiled and said nothing. Sure enough his unit was trashed and he wound up doing a complete remodel and selling two years later.

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TNL
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Re: Anyone experienced landlords here? Caught some of my tenants renting out rooms. Anything I should do?

Post by TNL » Thu Jul 12, 2018 7:06 pm

As stated above, I would check your LL tenant laws and your own lease agreement -- hopefully you used a form residential lease which typically says no subleases without LL permission. In any event, to fix this problem, can you get all three people to complete a new rental app and a new lease? I think you should ask to collect an additional security deposit and see if you can sign all of them to a lease.

MotoTrojan
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Re: Anyone experienced landlords here? Caught some of my tenants renting out rooms. Anything I should do?

Post by MotoTrojan » Thu Jul 12, 2018 7:11 pm

I'd also be uncomfortable with this personally and would want additional compensation for the risk/wear. I'd also want to approve of the subs.

bampf
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Re: Anyone experienced landlords here? Caught some of my tenants renting out rooms. Anything I should do?

Post by bampf » Thu Jul 12, 2018 7:30 pm

I was a landlord for roughly 17 years. I dumped all my properties for a number of reasons, not the least of which was problems with a tenant that decided it was ok to run prostitutes out of the place. You really really don't want any drama when it comes to renting out your place. If you don't know who is living there, what prevents them from cooking meth in your garage, having your property seized and or having to do meth mitigation? This is a bad scenario I know, but, so is having a drug crazed prostitute holed up in your attic refusing to come down while putting holes in your ceiling. Not that I would know anything about that. If your lease has a gap, fix it. If it doesn't, then your client is in violation of the lease and you should take steps to remediate that as well. It doesn't actually get better on its own and you have an major amount of down side. Just saying...

dknightd
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Re: Anyone experienced landlords here? Caught some of my tenants renting out rooms. Anything I should do?

Post by dknightd » Thu Jul 12, 2018 7:45 pm

sngaw wrote:
Thu Jul 12, 2018 4:12 pm
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.
This is your first post. Welcome.
Like others have said, it depends on what your lease says, and on local laws.
As long as they are not causing a problem, or breaking a law, I would not worry about it.
If they are breaking the terms of your lease, you could break the lease. But then you would have to find new tenants.

DVMResident
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Re: Anyone experienced landlords here? Caught some of my tenants renting out rooms. Anything I should do?

Post by DVMResident » Thu Jul 12, 2018 8:40 pm

This happened to us. The tenants rented out a room on Airbnb. The landlord takes on a lot of risk of a non-vetted person that don't have renters insurance and can run afoul of your own insurance.

After getting burned, I added clauses into the lease banning all short-term rentals and visitors beyond 5 consecutive days without prior written notice, had a specific dollar value of added rent cost for additional occupants (which will be collected retroactively with a plenty without prior written notice), and checked Airbnd for postings once a quarter.

kupuna
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Re: Anyone experienced landlords here? Caught some of my tenants renting out rooms. Anything I should do?

Post by kupuna » Fri Jul 13, 2018 2:09 am

Welcome to the forum and welcome to the world of being a landlord. You'll find (again) there is no free lunch. Being a landlord is work.

Had rental property for over 30 years, including 18 years of owning/managing a 10-unit apartment. Subleasing and subletting should be covered in the contract, along with many other contentious issues. The most common conflict is return of security/cleaning deposit so it should be spelled out and discussed with the tenant. There are many sample leases available and it would be wise for you to look several over and customize one to fit your needs. If it's not in writing or covered by local/state laws, it is open for interpretation by you and your tenants. The goal is that you and your tenants have the same expectations, right down to who pays for the plugged-up toilet after the second (or third) time it happens, or what if a window gets broken. How about if the tenant gets locked out and breaks a window to get back in or calls you at 3 AM to let them in the apartment. All of these issues should be spelled out in the contract. You can't kick a tenant out for breach of contract if there is no contract. My contract stated a guest could not stay more than 7 days in any six month period, but any restriction will work.

There is an excellent book titled Landlording by Robinson that will help you get started. Nolo Press has excellent books on the legal aspects of what you can/can't do as a landlord.

Being a landlord is not for everyone. People will try to take advantage of you. You must decide early if it will be run as a business or a charity and then enforce exactly what the contract states. I could tell you dozens of stories, some tragic and some humorous. I've also had wonderful tenants.

Good luck. I hope it is as lucrative for you as it was for me.

TOM
"I can calculate the motions of the heavenly bodies, but not the madness of people." Sir Isaac Newton

jeremyl
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Re: Anyone experienced landlords here? Caught some of my tenants renting out rooms. Anything I should do?

Post by jeremyl » Fri Jul 13, 2018 6:04 am

I encourage you to buy or borrow the book on managing rental properties from the people at bigger pockets.com. I’m educating myself about rental properties before I start my real estate investing and I’m reading this now. I like how they have everything in step by step process or system to follow.

If you’re not on that site, get on it. People there love helping others.

Good luck.

mrgeeze
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Re: Anyone experienced landlords here? Caught some of my tenants renting out rooms. Anything I should do?

Post by mrgeeze » Fri Jul 13, 2018 6:19 am

MotoTrojan wrote:
Thu Jul 12, 2018 7:11 pm
I'd also be uncomfortable with this personally and would want additional compensation for the risk/wear. I'd also want to approve of the subs.

Forgetting your comfort, I would want some extra security deposit on the subs.
I think you can reasonably expect more maintenance with more people.

Check your docs and make sure next time you renew you state clearly your desires if wording is ambiguous.

I would request (in writing) additional security depost to cover sublets.
If wording is ambiguous you may get some push back.
Again, this is a reasonable request.
Be firm but keep your head.

If you have good tenants, you want to keep them.
You may not like the sublet arrangement, but it may not be all that bad.
Money fixes about everything in a rental arrangement.

Grt2bOutdoors
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Re: Anyone experienced landlords here? Caught some of my tenants renting out rooms. Anything I should do?

Post by Grt2bOutdoors » Fri Jul 13, 2018 6:33 am

All of the above as noted.
Being a landlord is not all that it’s cracked up to be. Sometimes you have to run your rental as a charity, most times I wouldn’t. Having a good tenant is worth it’s weight in gold, you can keep raising the rent until you get the deadbeats who abuse your property leaving you with a huge capital outlay to bring it back to liveable condition. If I had to do it again, would just stick with a reit Index. Less headache, press sell when you want out.
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A440
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Re: Anyone experienced landlords here? Caught some of my tenants renting out rooms. Anything I should do?

Post by A440 » Fri Jul 13, 2018 6:36 am

kupuna wrote:
Fri Jul 13, 2018 2:09 am


There is an excellent book titled Landlording by Robinson that will help you get started.
Being a landlord is not for everyone. People will try to take advantage of you. You must decide early if it will be run as a business or a charity and then enforce exactly what the contract states. I could tell you dozens of stories, some tragic and some humorous. I've also had wonderful tenants.
+1 I agree 100%.

The Robinson book has some good sample lease agreements and many other resources that I used as a "newbie" landlord. I rented out a duplex for 5 years. I had great tenants on one side, and a great tenants on the other...until they weren't. :annoyed Perhaps by more than a touch of providence, I was able to purchase the building before the real estate bubble of early 2000's and sell at the peak.

As others have said, check the lease agreement and read your State's Tenant's Rights. More than likely you can find this online.

bg5
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Re: Anyone experienced landlords here? Caught some of my tenants renting out rooms. Anything I should do?

Post by bg5 » Fri Jul 13, 2018 8:18 am

I have been a landlord for over 16 years and have 6 rentals. I rent to college kids in a college town so my situation may be different.

Do they pay on time each month on the due date? If so let them be. IF not evict them ASAP

ITs that simple......if they pay let them stay....if they dont.....get them out ASAP. Who cares if they are renting a room out.

jebmke
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Re: Anyone experienced landlords here? Caught some of my tenants renting out rooms. Anything I should do?

Post by jebmke » Fri Jul 13, 2018 8:31 am

bg5 wrote:
Fri Jul 13, 2018 8:18 am
if they pay let them stay....if they dont.....get them out ASAP. Who cares if they are renting a room out.
It might violate local laws.
When you discover that you are riding a dead horse, the best strategy is to dismount.

david99
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Re: Anyone experienced landlords here? Caught some of my tenants renting out rooms. Anything I should do?

Post by david99 » Fri Jul 13, 2018 8:57 am

It is true that it might violate local laws in terms of the number of people allowed to live in a two bedroom apartment. In a local college town there was a fire in a house with too many college kids living there and one of the students died in the fire. I would imagine that the landlord is in big trouble if he was aware of the situation and the insurance company may refuse to pay for the damages.

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Pajamas
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Re: Anyone experienced landlords here? Caught some of my tenants renting out rooms. Anything I should do?

Post by Pajamas » Fri Jul 13, 2018 9:11 am

Offer the roommates the opportunity to apply to be added to the lease.

ensign_lee
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Re: Anyone experienced landlords here? Caught some of my tenants renting out rooms. Anything I should do?

Post by ensign_lee » Fri Jul 13, 2018 9:28 am

Apparently, I'm in the minority, but I would just let it be. You rented the space to your tenant, it's effectively his/her space while he/she is renting it from you.

If you have nothing in your lease preventing subletting, you're also on shaky legal ground to say that they can't.

Unless you see evidence of damage, etc, then let it alone. I know I personally would be furious if I was in your tenant's shoes and you dictated how I was to live in the space I rented. The chances of me renewing my lease at the end of it would be close to 0%, and you can bet I would start not caring at all about the property I was renting.

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Re: Anyone experienced landlords here? Caught some of my tenants renting out rooms. Anything I should do?

Post by jminv » Fri Jul 13, 2018 10:17 am

I'm also in the minority. If there's nothing in the lease preventing subletting then I would leave it alone and use it as a lesson, if you want, for next time. This is a student or young person, right? The way I would look at it is that you're leaving money on the table while an enterprising student is house hacking his rental. This is common in some college towns and can be convenient for landlords since you're outsourcing the sourcing of tenants to your own tenant. Kid is enterprising, has friends/aquaitances, and can fill the house/apartment that might otherwise go unrented or rent for less. There is, of course, added risk and the need to comply with local regulations.

If there was some language preventing subletting I might be inclined to redo the lease to add the other kid(s) once they applied and charge more per month.

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Re: Anyone experienced landlords here? Caught some of my tenants renting out rooms. Anything I should do?

Post by Ruger » Fri Jul 13, 2018 10:40 am

dknightd wrote:
Thu Jul 12, 2018 7:45 pm



As long as they are not causing a problem, or breaking a law, I would not worry about it.
I would however make sure they know I know what is going on, and I would raise the rent to cover the increased wear and tear on the property from three tenants being there instead of one.

tim1999
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Re: Anyone experienced landlords here? Caught some of my tenants renting out rooms. Anything I should do?

Post by tim1999 » Fri Jul 13, 2018 2:18 pm

When I was a landlord, the most difficult part of the business was getting tenants to pay on time every month. Assuming subletting is prohibited by the lease terms, I would tell the tenant that I am aware of the violation but will do nothing about it so long as they continue to pay on time every month without fail with no excuses, making it clear that if they are late on rent I am immediately serving them with an eviction notice on both violations.

JoeRetire
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Re: Anyone experienced landlords here? Caught some of my tenants renting out rooms. Anything I should do?

Post by JoeRetire » Fri Jul 13, 2018 3:00 pm

sngaw wrote:
Thu Jul 12, 2018 4:12 pm
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.
You can only do what your lease agreement and local laws permit.

Does your lease agreement specifically prohibit subleases? What do local laws say by default?
What does your lease/local laws permit you to do when any tenant not pay the rent on time? You can do that.
What does your lease/local laws permit you to do when tenants cause disturbances? You can do that.

Are you anticipating problems that may never happen? Or are you trying to nip this subleasing in the bud anyway?

For me, I'd never permit unauthorized subleasing. But I'd have written that into the lease in the first place.

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Re: Anyone experienced landlords here? Caught some of my tenants renting out rooms. Anything I should do?

Post by Hawaiishrimp » Mon Jul 16, 2018 8:04 pm

Have a conversation with them. If ignored, send them a formal letter. If ignored, legal letter from a law firm. Usually you won't need to get this far.
I save and invest my money, so money can make money for me, so I don't have to make money eventually.

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Re: Anyone experienced landlords here? Caught some of my tenants renting out rooms. Anything I should do?

Post by jalbert » Mon Jul 16, 2018 10:55 pm

mrgeeze wrote:
Fri Jul 13, 2018 6:19 am
MotoTrojan wrote:
Thu Jul 12, 2018 7:11 pm
I'd also be uncomfortable with this personally and would want additional compensation for the risk/wear. I'd also want to approve of the subs.

Forgetting your comfort, I would want some extra security deposit on the subs.
I think you can reasonably expect more maintenance with more people.

Check your docs and make sure next time you renew you state clearly your desires if wording is ambiguous.

I would request (in writing) additional security depost to cover sublets.
If wording is ambiguous you may get some push back.
Again, this is a reasonable request.
Be firm but keep your head.

If you have good tenants, you want to keep them.
You may not like the sublet arrangement, but it may not be all that bad.
Money fixes about everything in a rental arrangement.
All occupants should go through background and credit checks, and the each person should meet the landlord's objective criteria. The rental agreement should clearly state how many nights per month someone can stay as a guest without landlord's permission or being named on the agreement. Violations of the agreement should not be tolerated. How the current situation should be handled will depend on the terms of the rental agreement and state landlord-tenant law.
Index fund investor since 1987.

deltaneutral83
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Re: Anyone experienced landlords here? Caught some of my tenants renting out rooms. Anything I should do?

Post by deltaneutral83 » Tue Jul 17, 2018 10:39 am

Seems it's either let it go or evict them immediately. You can always just not renew their lease next time it's up, assuming you give them 60 days notice or whatever your state laws dictate. Gives you time to find new renters. If someone is willing to sublease without telling you, there's a lot more they are willing to do to your property in my opinion. Seems as though the situation is going as well as can be in terms of a hidden sublease in that they are paying you on time. Just don't renew their lease if it's bothersome, is it more than a couple months away?

DVMResident
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Re: Anyone experienced landlords here? Caught some of my tenants renting out rooms. Anything I should do?

Post by DVMResident » Tue Jul 17, 2018 11:13 am

deltaneutral83 wrote:
Tue Jul 17, 2018 10:39 am
Seems it's either let it go or evict them immediately. You can always just not renew their lease next time it's up, assuming you give them 60 days notice or whatever your state laws dictate. Gives you time to find new renters. If someone is willing to sublease without telling you, there's a lot more they are willing to do to your property in my opinion. Seems as though the situation is going as well as can be in terms of a hidden sublease in that they are paying you on time. Just don't renew their lease if it's bothersome, is it more than a couple months away?
You can modified the lease at renewal. See my approach above.
OP, I can send the specific language I used over PM.

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Re: Anyone experienced landlords here? Caught some of my tenants renting out rooms. Anything I should do?

Post by sailaway » Tue Jul 17, 2018 6:17 pm

deltaneutral83 wrote:
Tue Jul 17, 2018 10:39 am
If someone is willing to sublease without telling you, there's a lot more they are willing to do to your property in my opinion.
That is ridiculous. Most adults consider this a good way to get the place they want, then take time to get a good roommate, rather than trying to make magic happen to get the two to come together at once. We were kind of glad our property manager told us to deal with it ourselves because it makes it possible for us to have a month to month sublease, in case we have issues with a roommate. We have slightly more rights and slightly more responsibility.

OP, you need to be aware of local and HOA regulations regarding occupancy. You could be held liable for violations.

deltaneutral83
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Re: Anyone experienced landlords here? Caught some of my tenants renting out rooms. Anything I should do?

Post by deltaneutral83 » Wed Jul 18, 2018 7:36 am

sailaway wrote:
Tue Jul 17, 2018 6:17 pm
deltaneutral83 wrote:
Tue Jul 17, 2018 10:39 am
If someone is willing to sublease without telling you, there's a lot more they are willing to do to your property in my opinion.
That is ridiculous. Most adults consider this a good way to get the place they want, then take time to get a good roommate, rather than trying to make magic happen to get the two to come together at once. We were kind of glad our property manager told us to deal with it ourselves because it makes it possible for us to have a month to month sublease, in case we have issues with a roommate. We have slightly more rights and slightly more responsibility.

OP, you need to be aware of local and HOA regulations regarding occupancy. You could be held liable for violations.
If you spoke to the property manager about filling the space then by default, you didn't sublease without telling the property manager/landlord. This is an obvious apples to oranges comparison. I haven't met a landlord that doesn't prefer to at least know who's staying at their rental, and all of the ones I know require they be on the lease if they are staying there overnight x days a month.

shell921
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Re: Anyone experienced landlords here? Caught some of my tenants renting out rooms. Anything I should do?

Post by shell921 » Wed Jul 18, 2018 7:55 am

As jalbert says:

"All occupants should go through background and credit checks, and the each person should meet the landlord's objective criteria. The rental agreement should clearly state how many nights per month someone can stay as a guest without landlord's permission or being named on the agreement. Violations of the agreement should not be tolerated. "

I own a 4000 sq ft custom home in a nice neighborhood. My neighbor below lost his job 3 years ago and moved to another city.
He rented his 6000 sq ft custom home. The first tenant was great. He was there a year and a half. The family that moved in after the 1st tenant left
has been a source of on-going problems. Supposedly it was a husband and wife and one young daughter living there but I know
that there are at least 5 people living there! 6 cars that go up and down drive way all day long. 5 overflowing trash bins are put out weekly!
My home overlooks this rental and I see who comes and goes and no way is it just 3 people. I texted the owner and told him all this.
He said these tenants have broken every term of their lease. I urged him next time to get the driver's license numbers
and vehicle license plates of all people who will be living or visiting there overnight.

GuppyDriver
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Re: Anyone experienced landlords here? Caught some of my tenants renting out rooms. Anything I should do?

Post by GuppyDriver » Wed Jul 18, 2018 8:31 am

Two parts:

First, if the lease doesn’t have the favorable landlord clauses mentioned above (sublets, number of guests, duration of stay, etc.), have coffee with your property manager and ask point blank what you’re paying for. PPMs are a dime a dozen (a subtle pun) ... don’t hesitate to remove a poor performer.

Second, and this what I did to great effect when faced with the same situation, head over to the property to meet your “actual” tenant and let him/her know that you’re aware of the situation. Clearly remind her/him that no matter what, they are responsible for paying rent, damages, and the behavior of the others in the home. Then ask for IDs from the others living in the rental, collect a deposit for/from each and add them to the lease. One of two things will happen: everyone will play along and you’ll keep a rent paying tenant while establishing the option for legal remedy directly from the sublettors. This’ll work even if the lease documents in use are missing a sublet clause. If you meet resistance and have the sublet clause, bite the bullet and evict.

I’m not an attorney and I would never play one on TV.... if you are aware of the problem and allow it to continue you may be establishing a de facto lease agreement with the sublettors.

Being a landlord is work but with good processes in place rentals are an excellent way to create long term income and even wealth.

Cheers, GD

bampf
Posts: 165
Joined: Thu Aug 04, 2016 6:19 pm

Re: Anyone experienced landlords here? Caught some of my tenants renting out rooms. Anything I should do?

Post by bampf » Wed Jul 18, 2018 12:37 pm

GuppyDriver wrote:
Wed Jul 18, 2018 8:31 am
Two parts:

First, if the lease doesn’t have the favorable landlord clauses mentioned above (sublets, number of guests, duration of stay, etc.), have coffee with your property manager and ask point blank what you’re paying for. PPMs are a dime a dozen (a subtle pun) ... don’t hesitate to remove a poor performer.

Second, and this what I did to great effect when faced with the same situation, head over to the property to meet your “actual” tenant and let him/her know that you’re aware of the situation. Clearly remind her/him that no matter what, they are responsible for paying rent, damages, and the behavior of the others in the home. Then ask for IDs from the others living in the rental, collect a deposit for/from each and add them to the lease. One of two things will happen: everyone will play along and you’ll keep a rent paying tenant while establishing the option for legal remedy directly from the sublettors. This’ll work even if the lease documents in use are missing a sublet clause. If you meet resistance and have the sublet clause, bite the bullet and evict.

I’m not an attorney and I would never play one on TV.... if you are aware of the problem and allow it to continue you may be establishing a de facto lease agreement with the sublettors.

Being a landlord is work but with good processes in place rentals are an excellent way to create long term income and even wealth.

Cheers, GD
Well said GD. Well said indeed.

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