Tenants sometimes need to add or drop a person from their lease. A relative moves into town, their significant other wants to move in, or they are trying to help out a friend. Adding or dropping a tenant to an existing lease involves a few steps to ensure that all parties involved are protected and aware of the changes. Below is a guideline on how to add or drop a tenant in an existing lease:
Tenant Request To Add a Tenant: Responsible tenants who respect their rental will proactively contact their property management company and request a change. The property manager should inform the leaseholder that they need information about the new tenant, such as their full name and contact information, and that a rental application needs to be filled out.
Review the Lease Agreement: A strong lease sets the tone of the landlord/tenant relationship. If there is a change, DenCO Property Management (DenCO) takes the opportunity to review the lease with the leaseholder. More face time with the tenant builds trust and shows attentiveness to the renter’s needs. Our lease has specific provisions regarding adding or dropping tenants. Landlords must know who is living in the rentals under their management, and property manager approval is required before the tenant is allowed to stay.
Background Check: DenCO will instruct the new tenant to fill out a rental application on its website, which includes a background check. If approved, they will update the lease agreement accordingly.
Draft an Amendment: After approval, the property manager drafts an amendment to the existing lease agreement. The language will clearly outline the terms of the addition, including the new tenant’s name, defining their responsibilities, adding any changes to rent, and the effective date of the amendment.
Signatures: All parties involved, including the original tenants, the new tenant, and the property manager, need to sign the amendment to the lease agreement, ensuring that everyone agrees to the changes. The property management company updates its records to reflect these changes.
Legal Protection: A lease outlines the rights and responsibilities of the landlord and tenants. New tenants added to the lease become legally bound to the lease terms, including the total rent and care of the property, protecting the property manager if the new tenant fails to meet their obligations. Click here to view the summary of the City of Denver’s landlords’ and tenants’ obligations.
Removing a Tenant from a Lease: Things change, and sometimes a renter needs to move out. The process of removing a tenant from a lease is not dissimilar from that of adding a new tenant. DenCO believes leases should be updated on a need basis to accurately state who is living in a rental property at all times.
Refusal To Add: Once a lease is signed, property managers are not obligated to add new renters. They can refuse to add someone to a lease for various reasons, such as occupancy limits or issues uncovered by tenant screening. However, they cannot deny any applicant for discriminatory reasons. They expose themselves and their owners to significant legal risk if they do.
Sneaking In a Tenant: Sometimes, a friend or relative overstays and sets up residence in a rental without permission. The leaseholder forgets or decides not to bother the landlord about the addition. DenCO conducts two property inspections each year. Property managers should look for signs of more people living on the premises than stated in the lease. If they find a violation, the property management company presents the current leaseholder with a formal violation document. After talking to the current leaseholder and their guests, the property manager contacts the owner and assesses whether to add the tenant.
DenCO believes listing all adult occupants of a rental property in the lease agreement reduces risks and helps maintain asset value. If not on the lease, undocumented renters have no written obligation to follow the rules outlined in the lease, making it more difficult to pursue legal action against them if an issue arises. Adding them to the agreement protects the rental asset by allowing screening and legally binding new tenants to meet the terms and conditions of the lease.
Owners who are considering putting their rentals under professional management should call DenCO. We have been in business since 1999 and manage 150 rentals in the DU, Washington Park, and other Denver neighborhoods. Call us at 303-722-9688 or click here to complete a Contact Us form.
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