Know Your Tenants

Q. We have a house that is used as a rental and we rented it last year to a couple and their 2 children.  A few weeks ago, I stopped by to post a notice of increased rent.  A man greeted me at the door whom I had never seen before.  When I asked him who he was, he said that he lived there.  My wife and I are in a quandary as to what to do.  My neighbor told me that this could be a problem if I ever need to evict.  Is this true?

A. I am not clear as to whether the man was just a roommate or if the old tenants moved out.  Regardless, it seems that you have a situation where the property has been subleased.  My first suggestion is that you review your Rental Contract to see if it has a “sublease clause”.  If it does, I would consider that a breach of contract.  Sometimes, tenants will rent a room in the house for extra income.  This is also subletting.  Your lease should specify that in either situation this will not be allowed without your prior written consent.  Occasionally, we have this situation come up in my management office. To help avoid it, we list in the Rental Agreement exactly who will be living in the property and explain at that time that no other people will be allowed to live there unless they are approved by us first. My second suggestion is to send the tenants a letter asking them to explain the situation.  You and your wife can then discuss it and decide whether you want to terminate the lease or try to work with them.  If he is a roommate and you have no problem with allowing him to stay, ask him to fill out an application and check him out so that you know who is living in your property.  The potential problem is that if the original couple moves and the man remains in the house, you have no information on who he is, or where he works.  If you needed to evict him, it would could be difficult to serve him notice and/or collect any rent owed.  Should you need to evict and there is an “unknown person” living in the property, be sure that your eviction notices are addressed to all adults named on the lease and any subtenants or occupants.  Otherwise, you may be requested by the court to begin your eviction process all over again.  This unfortunate situation can cost you an additional 1-2 months lost rent.

If you have any questions concerning your rental property, please call my office anytime at (805) 474-0100. I always enjoy hearing from you! Nancy Puder is the property manager and owner of Signature Properties, 124 S. Halcyon Rd #D, Arroyo Grande, CA 93420. Service areas are The Five Cities/Beach areas, SLO, Nipomo and Santa Maria.