Allowing home for multiple renters

By Tenant

Do you have a house that you are looking to rent out? Finding a family to rent your home out to; may prove to be hard as families nowadays opt to buy a house and settle in. Now your next best choice is to rent out your place per bed or per room, now in most states, the law allows 2 persons per room so if you have 4 rooms you can rent it out to 8 people. Now you ask, what are the upsides and downsides in renting to multiple tenants?
Pros:
• Since they pay rent individual, you can slightly increase the rent than when renting to a single family unit and still be considered affordable as they are sharing.
• You can almost be sure that somebody pays on time. So you always get rent every month.
• If you do evict somebody you still have other tenants so you still have income while looking for a replacement.
Cons:
• Multiple tenants equal multiple complaints.
• Maintenance costs doubles up.
• Stressful to collect rent from multiple persons.
So with these thoughts to consider and you decide to rent out to multiple tenants, here are some tips to ensure you don’t get into a lot of problems:
• Be sure to have the tenants sign separate lease agreements. That way the tenants cannot fight over each other when it comes down to who will pay for the back rents so that they will not be evicted altogether.
• Since they are not really blood related you can ask them their security deposit individually. This will be very convenient for you by the time the tenant moves out since you already have separate security deposits to give back or deduct from for any major damages.
• Specifically include in your lease the tenant’s individual responsibilities when it comes to damages and repairs. Since there are multiple tenants inside your apartment it is sometimes difficult to pin point who is responsible for the damages and who must pay for it.

Related posts:

Holy Cow, we couldn't find any other related post. Sorry. :(