Risks of Allowing Unauthorized Occupants in a Rental Home
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As a landlord, it can be frustrating to discover unwanted occupants in your rental property after going through the hassle of advertising, thoroughly screening renters, and signing leasing paperwork. Unfortunately, this is a common problem, and even while they might not be creating issues immediately, this could develop into a long-term concern.
That’s why it’s important to know who is a renter, who is a guest, and who is an unauthorized occupant. Also, being aware of your rights as a landlord can go a long way. Continue reading as this guide explores who unauthorized tenants are and the risks of accommodating them.
What is an Unauthorized Occupant?
In the absence of a lease, adults who occupy the property without a permit are considered unlawful occupants. If they have moved in or are staying longer than is allowed by your lease terms, they are no longer considered a visitor.
The legally valid lease arrangement between you and your renter does not include unauthorized occupants, nor do they have any legal right to be on the property. Although they could have been permitted to visit the property, their prolonged presence makes them unauthorized occupants. There is often a two-week maximum for visitor stays, though this will vary depending on the state, locality, and lease agreement.
Difference between Guests and Unauthorized Occupants
The primary distinction between an unauthorized occupant and a guest is that they moved into or stayed in your space for any period of time without being invited to do so. In this situation, a written agreement between the landlord and unauthorized residents is typically lacking. They are not covered by the lease even though they reside in the rented property.
A guest may be establishing residency if they stay overnight frequently, especially after the period stipulated in the lease agreement. In Florida, for example, a visitor who stays for more than 14 days in a six-month period or seven consecutive nights is often considered a renter. Additionally, it's a clear sign that a visitor has established residency when they begin to receive mail or shipments at your house. There is often an official link between the address and this activity.
Unauthorized occupants do not have permission to occupy the premises under the lease, do not owe the landlord rent, and usually did not sign the lease agreeing to the lease term. This can be problematic in cases of nonpayment of rent, causing damage to property, or not following the lease rules. It can also become a challenge if you need to evict them, as they may start to refuse or claim you cannot evict them.
Landlords must keep a keen eye out for unlawful residents. They should keep an eye out for indicators such as increased utility costs or an increase in the number of cars parked outside. Finding any changes in the occupants of the property can also be facilitated by conducting routine inspections. Bay Property Management Group Austin Texas can facilitate the proper process for adding occupants. It is beneficial to establish explicit guidelines in the lease regarding the duration and frequency of guest visits to prevent confusion.
Risks of Allowing Unauthorized Occupants in a Rental Home
1. Unpaid Rent
The unauthorized occupier may remain in the flat if the renter stops making rent payments or even moves out. This kind of potential tenant can be difficult, costly, and time-consuming to evict. As a result, during the eviction process, landlords will continue to incur financial losses. You increase your chances of finding yourself in this kind of predicament by letting an unlawful tenant remain on the property.
2. Lease Violations
Regarding leases, you should be concerned about more than just the possibility of damages. The terms of the lease have not been viewed or accepted by unauthorized occupiers. Even if your tenant requests it, they are not legally obligated to follow such guidelines. The issues they create could be as basic as parking infractions. It's not a big deal, but your other tenants will still find it annoying.
Furthermore, their presence can be a complete violation of the lease. Is there a provision in your lease prohibiting long-term guests or subleases? If so, this unapproved occupant most likely violates the terms of the lease.
3. Potential Damage to Property
It might be challenging to hold the unauthorized occupant responsible if they cause any damage to the property. Legal tenants are responsible for the behavior of their guests, and any damage that exceeds the security deposit may typically be covered by a tenant's renters' insurance. However, it could be challenging to hold various kinds of unlawful tenants accountable.
Final Thoughts
Making the regulations clear in the lease is the most important thing to keep in mind during the entire process of dealing with unauthorized tenants. Learn about the laws and regulations in your area pertaining to tenant guest policies.
On the owner's side, property managers offer additional expertise in developing legal procedures, vetting candidates, and enforcing regulations. Hiring a qualified property management team is also an effective technique for dealing with unauthorized tenants, excessive visitors, or legitimate tenants, protecting your investment as well.