Managing a property can sometimes come with unforeseen circumstances that need to be handled with care, so as not to create some friction with your tenants. An example of such a situation is when tenants’ guests become tenants themselves.
As a landlord, you may need to find a way to maintain a balance between allowing your tenants to enjoy their rights and ensuring safety on your property. Our professionals at Young Management Corporation will guide you on how to achieve this.
Telling the Difference Between a Guest and a Tenant
Tenants can be typically described as the people with whom you have entered into a lease agreement, and anyone else recognized under the lease. This may include spouses, partners, family members, friends, or even nannies and helpers who sleep in.
But a guest is a person who is familiar with the tenant and visits for a short period of time. The period of the visit could be anywhere between a few hours and a few days. But the length of their stay determines whether they’re still guests or they are now closer to tenants.
There are a few tell-tale signs that you can look out for to help you know whether a guest has become a tenant. Some of them are:
Do They Offer to Pay Rent?
When a guest offers to pay either part or the full amount of rent, this could be an indicator that they intend to stay on the premises for a while. In such a situation, the guest may have had a conversation with your original tenant and perhaps felt obligated to meet some of the costs.
Have They Moved Furniture into the Property?
If you notice the guest moving furniture into the property, it’s likely that they intend to stay. Additionally, if the guest has started keeping personal items or even pets on the premises, this could be a sign that the guest has moved in or plans on moving in the future.
Do they Receive Mail at the Property?
Probably the most common indicator that a guest has moved into the premises is if they receive their mail there. If the person starts receiving mail and packages at the property, it most likely will mean that they listed the premises as their primary address.
Do they have a Copy of the Key?
If a guest has their own key to the property, it proves they need access even without the tenant being there. Though you might not be able to tell how they got the key, it is safe to say that they are occupying the premises.
Understanding the Occupancy Status of Guests
Sometimes it might seem a little excessive for a landlord to keep track of who occupies their tenant’s premises. But it is important to understand that landlords have an obligation to maintain a safe environment on their property for all their tenants.
When guests establish residency without the landlord’s knowledge, they enjoy all the benefits of being a tenant without the responsibilities. Guests are not recognized under the lease agreement and so they are not bound by it or bound by the landlord-tenant laws.
These situations can evolve and become about squatters rights if guests are not handled with care. Please contact us at Young Management should you have any further questions.
Handling Guests Turned Tenants
Once you have confirmed that the guest is now considered a resident, there are certain steps you can take to safeguard your tenants, your property and avoid any potential liability:
Include the Guest in the Lease
It is prudent for a landlord to find out as much as possible about the guest since they might be occupying the premises for a prolonged period. This can be done by directly approaching the original tenant.
When having this conversation, landlords should avoid blaming the guest turned tenant and instead look to find an amicable solution.
As long as the process complies with Fair Housing Laws, the landlord may also look to perform a background check on the guest as they would when screening a new tenant. This would alert the landlord of any potential red flags.
Once a landlord is satisfied with the information they’ve received, the guest may be included in the lease agreement as a tenant.
Check-in with the Guest
As a courtesy, the landlord may look to pay a visit to the guest and ask if they would prefer to be included in the lease or if they plan on moving out.
If they agree to be included in the lease, the landlord should inform the new tenant of their freedoms and obligations resulting from it. This includes rent payment and their responsibility towards the property and other tenants.
Bottom Line
As a landlord, being proactive can help you avoid such circumstances as guests establishing residency.
As a preventative measure, a policy may be included in the lease agreement stating the circumstances under which a guest may be considered a tenant and the necessary recourse in such a situation.
If you require assistance in handling such an occurrence or need professional property management services, contact us at the Young Management Corporation.
We have a team of dedicated professionals who will ensure that your Kansas City property is well taken care of with maximum returns on your investment.