Question: I am planning to rent to three adult roommates. I know they all have to fill out separate applications. But, how do I handle the security deposit? Do I ask each tenant for one-third?
Ted Kimball
Kimball, Tirey & St. John LLP
Answer: You should charge one deposit and not account for it until all tenants vacate. Make this clear in your lease so that if one tenant vacates, it is up to his or her former roommates to get reimbursed.
Question: I have reason to believe that a single tenant has moved out from my rental property and has an arrangement with a third-party couple now in residence. How do I best legally remove them and take back my apartment?
Answer: You can serve a three-day notice to perform conditions and covenants or quit if your lease has a prohibition against subletting or assignment of the lease, or, if there is a provision limiting residency to named occupants.
Question: I have an applicant for an apartment who informed me that she had bad credit because of her ex-husband’s irresponsibility. Her current employer has offered to co-sign. Is this a good idea to accept him as a co-signor, and how would this be done?
Answer: You should first determine whether or not you are going to have a policy of accepting applicants with bad credit on the condition they have a co-signor, in order to stay within fair housing laws. You should then decide what criteria the co-signor must meet, such as credit history, income, residency in the local area or at least in the state. Finally, require the co-signor to sign a separate guarantor agreement reviewed by legal counsel.
Kimball, Tirey & St. John LLP is a full service real estate law firm representing residential and commercial property owners and managers. This article is for general information purposes only. Laws may have changed since this article was published. Before acting, be sure to receive legal advice from our office. If you have questions, please contact your local KTS office. For contact information, please visit our website: www.kts-law.com. For past Legal Alerts, Questions & Answers, and Legal Articles, please consult the resource library section of our website.