Lease management is a vital aspect of managing a single-family rental property. As a binding contract, the lease should clearly explain all of the terms and responsibilities of both the tenants and the landlord or property owner. A lease should clearly show, by name, the tenants and other occupants in the house. This is why when renting a house, a property owner accepts a certain degree of liability for the home and everyone living in it.
Suppose an unauthorized resident damages the property. The landlord may only hold the person (or persons) who signed the lease responsible. The same restriction applies to collecting rent each month. In other words, if there are adult residents in the house who are not listed on the lease and the tenants fail to pay rent, the landlord cannot collect from those whose names are not written on the lease.
There are many reasons why a lease would need an update to the tenant list. Among the most common of these are situations involving the death or divorce of a tenant. In most instances, the remaining tenant may desire to stay in the rental house. In this case, the lease should be updated to reflect the actual responsible parties. In such a case, a landlord can require the remaining tenant to re-qualify for the house based on their sole income and circumstances.
Another regular situation that calls for a lease update is marriage or any additions to the household. Generally, any adult (over the age of 18) living in the rental home should be a listed party on the lease. That means that family members, as well as authorized roommates, must also be listed. Landlords must clearly indicate that all residents must be approved before moving in, and they should be notified if and when they move out. When an adult moves in with an existing tenant or if one moves out leaving the other tenants behind, the lease should be altered to show the updates. If the lease in question is a long-term contract, the landlord may prepare an addendum. There would be no need to re-draft a new lease. The addendum would merely state the name of the tenants planning to occupy the house.
Because tenant changes can be the result of a multitude of reasons and because the laws that govern who must be listed on the lease also changes a lot, it is important to view each situation on a case-by-case basis. Monitoring your rental properties closely, along with the tenants, may be a labor-intensive task. That is exactly why employing Real Property Management Southern Connecticut could be advantageous for you. We help West Haven property owners with lease and tenant management, including any necessary lease changes. Contact us or call us at 203-821-7303 for more information.