Adding a new tenant to a lease is a question that comes up from time to time. In this week’s Ask Landlord Hank question he discusses the issue or adjusting the rent and the new tenant. Remember Hank is not an attorney and cannot offer legal advice. If you have a question for him please fill out the form below.
Dear Landlord Hank:
I have a tenant who wants to add another tenant to the lease.
Does this constitute an opportunity to adjust the rent?
All utilities are included in the rent.
Also, they are in the first year of tenancy. The cost of utilities has skyrocketed, and adding tenants will add costs to maintain.
-Terri
HI Landlady Terri,
I would talk to your current tenant and tell them what you just wrote to me: That if the tenant passes background screening, they could be added to the lease BUT the costs you pay for utilities would increase and you’d be passing that along to this unit.
Make sure you are generous with yourself about the utility-cost increase, and let tenant know.
Make sure you do screening of the new tenant to make sure you get a good one and not a problem. The rental term remains the same. Good luck!
Sincerely,
Hank Rossi
Each week I answer questions from landlords and property managers across the country in my “Dear Landlord Hank” blog in the digital magazine Rental Housing Journal. https://rentalhousingjournal.com/asklandlordhank/
Ask Landlord Hank Your Question
Ask veteran landlord and property manager Hank Rossi your questions from tenant screening to leases to pets and more! He provides answers each week to landlords.
“I started in real estate as a child watching my father take care of our family rentals- maintenance, tenant relations, etc , in small town Ohio. As I grew, I was occasionally Dad’s assistant. In the mid-90s I decided to get into the rental business on my own, as a sideline. In 2001, I retired from my profession and only managed my own investments, for the next 10 years. Six years ago, my sister, working as a rental agent/property manager in Sarasota, Florida convinced me to try the Florida lifestyle. I gave it a try and never looked back. A few years ago we started our own real estate brokerage. We focus on property management and leasing. I continue to manage my real estate portfolio here in Florida and Atlanta. “ Visit Hank’s website here.
Editor’s note: Always check to see if there are any local or state regulations in your area that may vary with Hank’s answer.