Question regarding leasing property

[jy2581]

I know there are a few people in here with rentals. My wife and I are about to rent our home. Having never done this, I was wondering how the lease agreement is set up if there are multiple parties (in this case two roommates). Are there two separate lease agreements, or do they both sign one agreement. Sorry if this is a really stupid question. It's been almost 15 yrs since either of us signed a lease, so any info is very much appreciated.

 

[RunRonnieRun]

I know there are a few people in here with rentals. My wife and I are about to rent our home. Having never done this, I was wondering how the lease agreement is set up if there are multiple parties (in this case two roommates). Are there two separate lease agreements, or do they both sign one agreement. Sorry if this is a really stupid question. It's been almost 15 yrs since either of us signed a lease, so any info is very much appreciated.

You want them to sign a lease as "joint and several" tenants.

 

[jy2581]

If they break the lease, is it standard to require them to make payments through the lease term, or until the unit is re-rented? I thought that was fair (maybe a bit harsh). My wife said we should simply let them go but retain their security deposit. Thoughts?

 

[F4Gary]

If they sign a year lease, then they are responsible for 12 months rent. It's a business, not a friendship. If it's two roommates, then they are both responsible for the rent. If one skips out and leaves, then the other is responsible for the whole rent. They are also responsible for keeping up the yard.

 

[TennNole17]

Residential lease breaks are usually "rent responsible" through the end of the term or until you secure another tenant(whichever comes first); or xx amount months liquidated damages to break (usually two months). Security deposit can not be used towards rent owed/forfeited in lieu of finishing the term.

 

[TennNole17]

** standard exceptions for early termination should apply (job transfer with proof; military reassignment or deployment, etc)

 

[RunRonnieRun]

Military reassignment is covered under law. Job transfer isn't your problem. You can require rent through lease term or you can build in an early termination buyout.

 

[SeaPA]

You definitely include in the lease the requirement that they pay out the remainder of the lease term if they leave early. Without it, you are essentially just in a month to month rental, because there is no reason for the tenant to stay if he finds a more appealing alternative.

You always have the option to not enforce it if the something happens & the tenant has to move out (which I've done a couple of times). You don't have the option to enforce a clause you don't include.

 

[jy2581]

Security deposit can not be used towards rent owed/forfeited in lieu of finishing the term.

I didn't know this. We couldn't keep their security deposit if they just up and leave? Is that why some will require last month's rent? I can't seem to recall ever paying last months rent plus a security deposit. But then again, it's been almost 15 yrs since I've rented. Instead of the security deposit, I'd basically have go to court to collect the remainder of the rent?

 

[TennNole17]

I didn't know this. We couldn't keep their security deposit if they just up and leave? Is that why some will require last month's rent? I can't seem to recall ever paying last months rent plus a security deposit. But then again, it's been almost 15 yrs since I've rented. Instead of the security deposit, I'd basically have go to court to collect the remainder of the rent?

Here you can't, depending the lease language. "Security deposits" have to be held separately and used for damages first, then applied towards outstanding balance (I believe) after going to court.

Then again, I operated as a PM for a national company/landlord/reit and they just made shit up as they went along sometimes.

Check your local landlord/tenant act, most states spell it out pretty clearly. Tennessee goes as far to spell out a security deposit is not in fact for actual security services lol