When you own rental properties, it’s not uncommon to rent to roommates. You may have a property with three bedrooms and three roommates who want to move into the property and split the rental payment.
If you’re a landlord and you want to rent to roommates, make sure you know what you’re doing. A good property management company can help. You can also use the following tips to help when renting to roommates.
Top 7 Tips for Renting to Roommates as a Landlord
1. Always Put All Tenants on the Lease
You want to put all the tenants on the lease, whether it’s two, three, four, or even more. This helps to protect you from any issue of someone living on the property when they are not on the lease.
Each tenant needs to be on the lease to make sure they are held responsible if payments are not made or other issues happen.
2. Have One Tenant as the Point of Contact
When signing the lease, designate one tenant as your point of contact. This makes it easier to track the rental and the person you are dealing with. It can also make for better communication between you and your tenants.
3. Screen All Roommates
Don’t just rent to roommates because one of them qualifies. Make sure all roommates are stable with a stable income. Make sure they have good rental histories and have the ability to pay rent and take care of your property. Background checks on all roommates is also smart.
4. Require Renters Insurance for All Roommates
Make sure all roommates are protected with renters’ insurance. This is important because if only one roommate has renters’ insurance the things in the home may not be protected if they cannot prove they own them.
5. Only Allow One Full Rent Payment
Don’t allow roommates to pay partial rent payments and don’t charge per person. Allow only one full rent payment for your property, regardless of how many roommates you have. It’s a bit time consumer and a hassle to try to keep track of separate tenant payments.
6. Encourage Roommate Agreements
While you might not need to require a roommate agreement, you should encourage one. This helps roommates understand their responsibilities and stay on the same page. With a roommate agreement, it’s easier to make sure everybody knows what is expected.
7. Stay out of Roommate Conflicts
If you have roommates on a property, don’t get involved in their conflicts. While it might seem like something you can help solve, it’s not your business and can just lead to issues. Stay out of it and let them handle it. As long as they are not damaging anything or missing payments, it’s not your issue.
Renting to roommates doesn’t have to be a big deal. However, it can be, if you don’t follow these tips and screen everybody properly. With a good property management company, you will have everything you need in place when renting to roommates.