Lease management is an essential aspect of having and owning 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, moreover, exactly account by name all of the tenants and various other inhabitants of the rental house. This is due to the fact that when renting a house, a property owner accepts a certain degree of liability with regards to the property and those residing there.
If an unauthorized resident damages the property, the landlord is only be allowed to hold individuals responsible if they are on the lease. The same holds true for collecting rent each month. Assuming 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 not listed on the lease.
There are numerous situations that will require an update to the tenant list on a lease. Among the most common of these are situations involving the death or divorce of a tenant. In circumstances like that, the remaining tenant(s) may want to continue to dwell in the rental house. If this is the case, the lease should be updated to reflect the actual responsible parties. Keep in mind that updating the lease, even in these cases, a landlord can require the remaining tenant to re-qualify for the house based on their sole income and circumstances.
Other cases that trigger the need for a lease update include marriage and/or any other additions to the household. As a general rule, any adult living in the rental home should be a listed party on the lease. This means family members as well as any other authorized roommates. Landlords will have to be very clear that all residents must be approved before moving in, and notified if and when they move out. Once an adult comes or moves inside or out of a rental home, the lease has to be amended to indicate the changes and adjustments. In case the lease in question is a long-term contract, the landlord can prepare an addendum to show the latest tenants planning to reside or will be living in the house.
Remember, tenants are unique and so are the laws governing who must be listed in the lease. Keeping up on each and every tenant and rental property is obviously time-consuming. For this very reason, employing Real Property Management of the Triad would be a wise decision. We help Rural Hall property owners with lease and tenant management, including any necessary lease changes. Feel free to contact us online or call our Greensboro office at 336-355-6677 or our Winston-Salem at 336-777-7444. We’ll be glad to answer any of your questions.