When Does a Guest Actually Become a Tenant?

Rental property owners, at one time or another, usually face the problem of a tenant who has a guest that actually seems more like a tenant. As a landlord, this is one of the most challenging and difficult issues to deal with if you rent out property. Is the person a guest, or a tenant? When this problem occurs, many property owners seek the help of a professional property management company. Property manager Lloyd Kipp, owner of Valley Management Group a San Jose property management company, offers the following suggestions.

Simply put, if there is an adult living at your rental property – you should know who they are. They should complete an application and be liable for rent and damages just as the initial tenant did before they moved in. In saying that, there are several factors that need to be considered – and this is where the fine line comes in.

Perpetual over-nighters: This situation can be a sensitive one. When you notice that an individual is spending most days and nights on your property for months or even weeks at a time – they are no longer a guest, but a tenant.

College students: If a college student comes home for the summer and breaks – but they return to school, they are considered a guest. However, if they come home for the summer and do not return to school in the fall – they turn into a tenant.

Elderly parents: This situation that occurs frequently. When elderly parents come to visit and help out for a few weeks they are guests. However elderly parents that move in with their adult children due to health or financial issues are tenants.

Nanny or housekeeper:  If someone is living on your property full-time, they are a tenant, regardless of their situation. In this case, their name should be on your lease, and subject to the rules you have set forth. If they come into the property to perform their duties during part of a 24-hour period, but do not live there – they are classified as a guest.

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Sub-lets: Even though you may have a ‘no subletting’ clause in your lease – this continues to be a problem for many landlords. There may be a good reason for your tenant to sublet the property, such as a job change or unexpected move – but many renters may try to hide the fact. The best case scenario is for you to release the original tenant from the lease and have the sub-letter sign a new lease if they meet your qualifications as a tenant.

Why You Should Consider Using a Property Management Company

It’s hard to stay on top of city and county laws that relate to renting a property. When you engage the services of a good property management company, you can rest assured that they understand the industry’s best practice measures and stay current with the ever-changing laws pertaining to rental property. The situations related to those mentioned above involve having serious conversations with your tenants – conversations you may not feel comfortable having. You can avoid these uncomfortable conversations with your tenants when you enlist the help of property manager who has the experience in relating information to tenants. If you’re looking for trustworthy and affordable San Jose property management company to take care of your property and your tenants, contact Valley Management Group. They have over 35 years of experience in property management and have received a lot of high reviews from both rental owners and tenants. They offer a free quote and one free month of property management services.

Reviewed and Approved by Lloyd Kipp
Property Manager and Owner of Valley Management Group