4 adults renting....Huh? - Posted by acw

Posted by Beachbum on March 10, 2010 at 22:22:37:

Our typical residential leases run 4 pages plus house rules and other associated docs. It simplifies record keeping, or at least researching of files, to have the major points on the front page, which will be the first page you see when opening any tenant file. Term, dates, occupants, late fees and dates they kick in, security deposit amount, type of agreement (MTM, fixed term, auto roll over to MTM, etc.) All the rest of the necessary drivel is organized on following pages of the lease, with TENANT RESPONSIBILITIES a key section, as is MOVE OUT REQUIREMENTS. Make sure ALL the adults initial each of these pages.

All application paperwork and the movein condition form are kept under the lease documents. Other side of file contains tenant correspondence, newest on top, including late notices, complaint letters, letters FROM tenant, any and all docs…

4 adults renting…Huh? - Posted by acw

Posted by acw on March 08, 2010 at 14:56:01:

I have a house that a section 8 tenant is interested in. The neighborhood is lower middle class but, decent with no crime. Everyone keeps their yards and homes looking good. Perfect for a Section 8 renter.

This tenant is a single Mom with 3 adult children, who are all 18 and older.

According to the section 8 office, they all must be on the lease. 2 of the adults have children ages, 2 & 3.

I?m wondering what liability I have here with these tenants?
And because there are so many adults on the lease, are they Jointly responsible?

Who?s responsible if one or more default?

???

Re: 4 adults renting…Huh? - Posted by Beachbum

Posted by Beachbum on March 08, 2010 at 22:32:56:

Typically, with Sec 8 you will actually have two contracts. The first, YOURS, with your lease terms and spelling out every adult and minor that is authorized to reside there. The second, the HAP contract, which will be provided to you. The dates and dollars must match for Sec 8 to approve, but otherwise your lease is the one that matters if you need to go to court.

Keep in mind, however, your Sec 8 payments are “guaranteed” ONLY as long as the person remains on the program, and in my fairly extensive experience, you will never get anything over and above the security deposit from Sec 8 for ANY damages or past due tenant portion rent. If you complain to Sec 8 about tenant not following the rules or paying their portion, it is not unusual for them to kick them OFF the program. They do NOT evict for you.

Good Luck.

Re: 4 adults renting…Huh? - Posted by DJ-nyc

Posted by DJ-nyc on March 08, 2010 at 21:58:40:

The Adult with the Section 8 voucher is the responsible party if they or the other parties on the lease default. Are you referring to defaulting on their share of the rent payment? Of course the majority of the rent will come from HUD.

DJ-nyc

Re: 4 adults renting…Huh? - Posted by Mark(SDCA)

Posted by Mark(SDCA) on March 08, 2010 at 16:45:18:

I?m wondering what liability I have here with these tenants?

What do you mean by this? I don’t understand it. I don’t see that this particular situation adds any additional liability.

Who?s responsible if one or more default?

All of them.

BTW… this is more and more common nowadays given the economy.

Are all 6 of them going to live in the house?

Beach… - Posted by acw

Posted by acw on March 09, 2010 at 06:48:55:

Thank you.

Yeah, this is the first section 8 i’ve done and i’m a little concerned. Getting two different stories from Section 8 but that’s probably typical.

What’s unusual is that the all tenants are listed in lease…including Minors.

It appears that the only one responsible is the one with the Voucher.

Re: 4 adults renting…Huh? - Posted by ty

Posted by ty on March 08, 2010 at 18:37:00:

4 adults and no one working? I rented to 4 adults and their great! all have jobs! all are on the lease.

Re: Beach… - Posted by James - Michigan Investor

Posted by James - Michigan Investor on March 09, 2010 at 18:39:51:

Minors too? huh…

I’d say put them all on an addendum to be safe. Don’t need some judge saying you violated a 13 year old’s rights.

Somehow that didn’t sound right.

But I said it.

So, put them all on separate addendums.

James

Actually… - Posted by acw

Posted by acw on March 08, 2010 at 19:11:19:

Actually the kids a young adults in junior college, so section 8 gives the mom a credit for that. 1 adult working full time, the kids are working part time and going to school.

Maybe i’m getting this wrong but the kids have to go on the lease as leasee’s.

Re: Beach… - Posted by Beachbum

Posted by Beachbum on March 09, 2010 at 22:32:17:

It has been common practice at several PM firms over the years to include all authorized occupants on our lease as such:

John Doe
Jane Doe
Jack Doe (Guarantor only)
Johnny Doe (a minor)
Janice Doe (occupant only) --this for perhaps a live-in elderly parent or adult child (either student or special needs etc) with no or minimal income not included in household gross income when the primary head of household is “golden”, that is, very good credit, high income, stable, etc. Otherwise, ALL adults are jointly and severally accountable.

If the household is NOT “golden”, that is, if they are stretching, in any way, to meet your income requirements, the only notations would be for minors. And, be sure to change their status when they reach legal age at the first renewal opportunity.

By doing this, you document exactly who is supposed to be residing there so there can be no argument when “friends” or “relatives” are spending too much time there. You also have a good list of names to include in the eviction, along with the ever popular “et al”.

Re: Beach… - Posted by James - Michigan Investor

Posted by James - Michigan Investor on March 10, 2010 at 12:19:26:

I have a separate page in the lease that has all the names and birthdays and SS#s for all occupants of the house.

It’s made as a reference to the lease.

I like the way you suggested too.

James