Tenants chosing how to share rent (Los Angeles, CA)

[RichardBoothe]

I am a residential landlord in Los Angeles, California; I rent out a three-bedroom townhouse to three tenants. I've always let the tenants choose to share the monthly rent based on size of bedroom: Master bedroom pays 42%; medium bedroom, 34%; small bedroom, 29%. (Percentages are approximate). When a tenant moves out, the other tnants find a prospective tenant, who I then interview. Since I live an hour's drive away, it isn't easy for me to find tenants acceptable to the current tenants.

Three months ago, the master bedroom tenant's boyfriend moved into the vacant medium bedroom. When the small bedroom tenant moved out 1 month ago, the master bedroom tenant (and boyfriend) told a prospective tenant her share of rent would be 34%. When I objected, the master bedroom tenant replied I'd always let tenants "choose how to share rent," and the prospective tenant had agreed with the price. But the prospective tenant did not qwhen I interviewed her; 30% was the most she could afford, she said.

I see two choices: A] Insist the small bedroom tenant pay 29% of the rent. B] Let the tenants share the rent however they want, so long as I receive 100% of the rent each month. Which choice sounds best?

Note: it's possible a prospective tenant would move in to the medium bedroom, and the boyfriend would share the master bedroom with his girlfriend (which I suspect he already does)--but the master bedroom tenant never brought that up.

 

[Litigator22]

I am a residential landlord in Los Angeles, California; I rent out a three-bedroom townhouse to three tenants. I've always let the tenants choose to share the monthly rent based on size of bedroom: Master bedroom pays 42%; medium bedroom, 34%; small bedroom, 29%. (Percentages are approximate). When a tenant moves out, the other tnants find a prospective tenant, who I then interview. Since I live an hour's drive away, it isn't easy for me to find tenants acceptable to the current tenants.

Three months ago, the master bedroom tenant's boyfriend moved into the vacant medium bedroom. When the small bedroom tenant moved out 1 month ago, the master bedroom tenant (and boyfriend) told a prospective tenant her share of rent would be 34%. When I objected, the master bedroom tenant replied I'd always let tenants "choose how to share rent," and the prospective tenant had agreed with the price. But the prospective tenant did not qwhen I interviewed her; 30% was the most she could afford, she said.

I see two choices: A] Insist the small bedroom tenant pay 29% of the rent. B] Let the tenants share the rent however they want, so long as I receive 100% of the rent each month. Which choice sounds best?

Note: it's possible a prospective tenant would move in to the medium bedroom, and the boyfriend would share the master bedroom with his girlfriend (which I suspect he already does)--but the master bedroom tenant never brought that up.

Paron me for asking Richard, but what role does landlord tenant law play in this captivating monologue? I seem to have missed its legal essence. (Too absorbed in sorting out who belongs in whose boudoir I suppose.)

 

[adjusterjack]

I see two choices: A] Insist the small bedroom tenant pay 29% of the rent. B] Let the tenants share the rent however they want, so long as I receive 100% of the rent each month. Which choice sounds best?

I am a former landlord, having owned three rentals for 20 years.

As long as I got 100% of the rent on the due date I didn't care how the occupants divided the rent or the rooms.

You are foolish to be involved in their internal agreements.

 

[RichardBoothe]

Paron me for asking Richard, but what role does landlord tenant law play in this captivating monologue? I seem to have missed its legal essence. (Too absorbed in sorting out who belongs in whose boudoir I suppose.)

Litigator 22: My search through Property Management for Dummies and Internet searches for "shared rent" found no answers, hence my post. Since posting, I came across the term "co-tenant(s)" and found online an excerpt from a Nolo book and an article on co-tenants that both say, how co-tenants divide up rent is decided among themselves. Richard.

 

[RichardBoothe]

I am a former landlord, having owned three rentals for 20 years.

As long as I got 100% of the rent on the due date I didn't care how the occupants divided the rent or the rooms.

You are foolish to be involved in their internal agreements.

I find I must agree. See my response to Litigator22 in this thread.

 

[cbg]

As long as you get the full amount, it's none of your freakin' business how they choose to divide it. Do they get a say in how you manage your household arrangements? No? Then why do you get a say in how they manage theirs?

 

[Taxing Matters]

I see two choices: A] Insist the small bedroom tenant pay 29% of the rent. B] Let the tenants share the rent however they want, so long as I receive 100% of the rent each month. Which choice sounds best?

B is your better option. It's not really your concern how they divide up the rent. They are more likely to pay with an agreement worked out among themselves than paying a split imposed upon them by you. Just make sure the lease makes them all individually for the full rent of the unit. That way, if one roommate skips out without paying you still have recourse against the others.

Note: it's possible a prospective tenant would move in to the medium bedroom, and the boyfriend would share the master bedroom with his girlfriend (which I suspect he already does)--but the master bedroom tenant never brought that up.

I suggest your lease have a provision that either bars additional tenants completely or requires landlord approval for anyone new and that requires the new tenant to meet the same qualifications and background checks as the others and that the new tenant sign onto the lease so he/she shares the obligations of the lease.

 

[quincy]

... I suggest your lease have a provision that either bars additional tenants completely or requires landlord approval for anyone new and that requires the new tenant to meet the same qualifications and background checks as the others and that the new tenant sign onto the lease so he/she shares the obligations of the lease.

^^^This.
The leases I use have an “occupancy” clause that requires all tenants residing in a rental must be listed on the application, with additional or different tenants permitted to reside in the rental only after written consent is obtained from the landlord. A lease can be terminated if anyone is found to reside in the rental without this prior written consent.

As to division of rent per my leases, all tenants in the rental are held 100% responsible for the entire rental amount. Who pays the rent and how much each tenant contributes to the total amount due is left for the tenants to decide. I just expect the full rental amount each month.

 

[zddoodah]

I've always let the tenants choose to share the monthly rent based on size of bedroom: Master bedroom pays 42%; medium bedroom, 34%; small bedroom, 29%. (Percentages are approximate).

Does this mean that your lease only obligates Tenant A for 42% of the rent, etc.? As opposed to obligating all tenants, jointly and severally, for 100% of the rent?

Three months ago, the master bedroom tenant's boyfriend moved into the vacant medium bedroom. When the small bedroom tenant moved out 1 month ago. . . .

For simplicity's sake, I'm going to call the master BR tenant "A," the tenant in the medium BR "B," and the other tenant "C."

Which choice sounds best?

I don't really understand this question. No one here knows what's "best" for you. However, if I were you, as soon as the opportunity becomes available, subject to the Los Angeles rent control ordinance, I would require leases that obligate all tenants, jointly and severally, for 100% of the rent. If the existing lease already provides for this, then who cares? As long as 100% of the rent is paid, it shouldn't make the slightest difference to you who pays what.

 

[AlmostThere]

Why are you complicating things so much? Just worry about getting all the rent, not who is paying how much. If my potential landlord was asking to know how each room is being used (maybe one room is being used as a shared office and not as a bedroom at all?) and who is sleeping in which room, I'd run.

When couples share a room, do you care what percentage each person pays?

 

[quincy]

I actually have never heard of any landlord micromanaging rent payments in the way suggested by RichardBoothe.

 

[STEPHAN]

If I rent a house to three tenants, they are all on the same lease, each 100% responsible for the rent. The stay on the lease until they all give notice. If they want one to move out and come with a new one to replace him, we do a normal credit check and make a new lease for all tenants again.

 

[LdiJ]

If I rent a house to three tenants, they are all on the same lease, each 100% responsible for the rent. The stay on the lease until they all give notice. If they want one to move out and come with a new one to replace him, we do a normal credit check and make a new lease for all tenants again.

In the college towns/areas around my state apartment complexes and other landlords often rent individual rooms (with common area use) to people on separate leases. So for me, it is not unheard of for a landlord to control the rent for each room and to have a separate lease with each tenant for just their room plus common area use.

I am not saying that is what is going on here, but it could be something somewhat similar.

 

[quincy]

In the college towns/areas around my state apartment complexes and other landlords often rent individual rooms (with common area use) to people on separate leases. So for me, it is not unheard of for a landlord to control the rent for each room and to have a separate lease with each tenant for just their room plus common area use.

I am not saying that is what is going on here, but it could be something somewhat similar.

Not all localities permit by laws or by zoning the renting out of rooms in a house under separate tenant leases. With shared living spaces, you have the need for division of house utility costs, and security deposits must cover both private and common areas in the house. Owner-occupied homes operate differently as do boarding houses.

 

[LdiJ]

Not all localities permit by laws or by zoning the renting out of rooms in a house under separate tenant leases. With shared living spaces, you have the need for division of house utility costs, and security deposits must cover both private and common areas in the house. Owner-occupied homes operate differently as do boarding houses.

If I remember correctly most of the landlords who do this include utilities and internet in the rent. I have no idea how the security deposits work. However it really is very common in my state. In college areas the apartment floor plans are even built with that in mind. I lived in one of those apartments once, it was a really great apartment. There were two bedrooms of equal size on opposite ends of the apartment, each with their own bathroom, although one of the bathrooms could also be accessed from the common area. The kitchen and living room were in the middle.

Anyway again, the point I am making is that is some areas, something similar is not unusual.