Split Lease Agreement
Conclusion: Look at your rents, your tenants and what you value most as a manager or landlord. With your new comprehensive understanding of the differences between common and individual leases, you are well equipped to choose the right structure for your real estate. We (the undersigned) signed a lease for 777 State Street, Ann Arbor, MI, on January 1, 2020, valid until December 31, 2020, for a rental price of $1,200 per month. We hope to ensure that the responsibility for the rental will be shared equally by all the roommates. That is why we are signing this agreement. An individual lease gives you a lot of flexibility. You can control who occupies your property up to bed – yes to some, and not to others. Since liability is not shared among a group of tenants, you can charge higher prices per rental bed or bed to offset the additional risk. In addition, you can negotiate rates individually with tenants. If you choose to do so, you must be careful with price volatility and be prepared to justify any differences. Another advantage is accountability.
Each tenant is responsible for the fact that they are complying with their own rental terms, so that none of your tenants can play the debt game. You will know exactly which tenant is violating the terms of their tenancy agreement if there is a problem. From the owner`s point of view, this responsibility is understandable. They don`t want to deal with the internal problems of the roommates, they just want the lease to be respected. An owner usually does not participate in roommate agreements, but that doesn`t mean you can`t propose or encourage. A roommate agreement is a document signed by each tenant that provides a detailed explanation of expectations, rules and responsibilities for life in the shared unit. The agreement can address many issues before they become problematic, for example: while it is up to you as the owner, we advise discourage you from allowing sublease. It can complicate matters, because the tenants do not have to sign the lease and go through the original tenant – if someone misses a rent, it affects all parties involved. Sometimes a subletting near you may be necessary, z.B. if you rent to university students who are often in and out, but in this case you could make an endorsement to the lease to get the new tenant signed. Roommate agreements often contain a mediation clause that requires roommates to seek some kind of mediation by third parties before taking action.
It is a good idea to include such a clause. At the end of the day, the Action of the Roommate affects you and vice versa. A mediation agreement will give you more control over the dispute. In student housing, for example, it is common for tenants to fall in and out of love, study abroad, attend internships, fight with each other and give you headaches to you, the landlord. This is why the flexibility of individual leases may be worth an additional risk. In addition, parents often finance the rented apartment. The requirement that a parent co-signed the lease can provide far more security than collecting from a group of 19-year-olds through a common contract. If you rent a property with one or more people, a landlord can have you sign the lease together for you to become a co-tenant. A lease or joint tenancy agreement means that everyone is responsible for rents and the maintenance of the property. Yes, yes. Since a tenancy agreement with several tenants makes them jointly liable, you must only withdraw the rent once and once if it is due. The tenants themselves must decide how the rent should be distributed and who actually pays the landlord.
Before the lease is signed, it is a good idea to let all tenants know that a person`s actions can have potentially negative consequences for everyone who lives in the rental unit.