Do you know the best way to set up a multiple tenant lease?
Most landlords are accustomed to leasing their rental property to a single family, but sometimes they are presented with a roommate situation where a multiple tenant lease is necessary. While the roommate concept is nothing new, especially in college towns, do you as a landlord know the best way to set up a lease with multiple tenants?
- One lease with all tenants’ name included
- One lease with the primary tenant taking responsibility
- A separate lease for each individual tenant
Answer: There is no wrong answer however; it depends on the situation.
Most landlords write up a single lease with all tenants names on the lease. This ensures all tenants are equally responsible for all aspects of the agreement. In some cases, only one primary tenant is considered on the lease and is willing to take total responsibility but that is a practice the Real Property Management franchise system does not endorse.
Considering a separate lease for each individual tenant would work better if you were leasing out individual rooms of the home, similar to a situation found in a college town where this practice is more prominent. In this case, an individual lease with separate deposits works well so that one roommate can move in or out independently of the other roommates.
If multiple tenant rentals are a common practice where your property is located, it is best to discuss the situation with your local Real Property Management office. They can provide their professional experience and guide you in the ideal solution for your rental property.
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