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California landlord. Lease clauses and continued roommate turnover without full vacancy

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California landlord, experienced with one-year lease SFHs leased to families. Now for the past four years I've also had a SFH leased to 2-4 roommates at a time as co-tenants (jointly and severally liable) that have frequent roommate turnover. (Yes, I always perform full tenant screening and tenants know in writing I must approve all new roommates.)

For those of you with roommate rentals, how do you construct your lease clauses with respect to roommate changes and damages? The rental has always been in perfect condition every time I inspect, but as time goes on I might have to face this scenario.

Four years ago, four roommates signed a one-year lease as co-tenants. Condition of rental was thoroughly documented (photos, videos, and descriptions), before and after move-in walk through documents were filled out and signed, etc. Per the lease, co-tenants are (jointly and severally) liable for all damages beyond reasonable wear and tear unless excepted by me in writing.

One of the original co-tenants departed at 10 months into the lease, and an approved replacement moved in. All remaining co-tenants and I signed a lease addendum 1) Releasing the departing roommate from the lease and refunding their deposit share, 2) Adding the new roommate as co-tenant to the lease and collecting their deposit share, 3) All parties agreed to accept the condition of the property as was documented at the start of the lease, 4) I found no damage at my recent (date) inspection, and 5) No current or past co-tenant had notified me in writing of any damage prior to my signing of this addendum.

The existing co-tenants signed a new one-year lease ("second" lease, for purposes of this post) at lease end two months later. This second lease was written same as the first, except for the condition of property clause, which was worded like the first lease's addendum: It stated all co-tenants and I agreed to accept the condition of the property to be as was documented at the start of the first lease. The first lease with all documentation and the roommate change addendum were attached to the second lease. I had inspected the rental prior to signing and it was still in perfect condition and I documented that.

Each subsequent roommate change has been in a lease addendum as I did for the first lease, and each subsequent one-year lease is the same as the second lease, in that it always refers to the condition of the property as being accepted how it was documented at the start of the first lease. Every lease, documentation, addendums, etc. are attached to each new lease.

Some of my concerns going forward this way are, 1) Even though signed by all as agreeing to accept the condition of the property as was documented four years ago, would that clause be likely to hold up in court should I have to go to collect repair costs? What if it goes six years, or ten years, without a full vacancy? 2) If a co-tenant just "takes off", I inspect and find damage that remaining co-tenants attribute to ex-roommate (and costs are more than ex's deposit share), what handling of this should I state in my lease, to protect myself if the ex-roommate denies responsibility? 3) And many other things I haven't thought of yet...

Thank you for your time and for any thoughts or suggestions on what I should consider changing or doing instead, that will be better for me and for my tenants.

--Kind regards.
 


quincy

Senior Member
California landlord, experienced with one-year lease SFHs leased to families. Now for the past four years I've also had a SFH leased to 2-4 roommates at a time as co-tenants (jointly and severally liable) that have frequent roommate turnover. (Yes, I always perform full tenant screening and tenants know in writing I must approve all new roommates.)

For those of you with roommate rentals, how do you construct your lease clauses with respect to roommate changes and damages? The rental has always been in perfect condition every time I inspect, but as time goes on I might have to face this scenario.

Four years ago, four roommates signed a one-year lease as co-tenants. Condition of rental was thoroughly documented (photos, videos, and descriptions), before and after move-in walk through documents were filled out and signed, etc. Per the lease, co-tenants are (jointly and severally) liable for all damages beyond reasonable wear and tear unless excepted by me in writing.

One of the original co-tenants departed at 10 months into the lease, and an approved replacement moved in. All remaining co-tenants and I signed a lease addendum 1) Releasing the departing roommate from the lease and refunding their deposit share, 2) Adding the new roommate as co-tenant to the lease and collecting their deposit share, 3) All parties agreed to accept the condition of the property as was documented at the start of the lease, 4) I found no damage at my recent (date) inspection, and 5) No current or past co-tenant had notified me in writing of any damage prior to my signing of this addendum.

The existing co-tenants signed a new one-year lease ("second" lease, for purposes of this post) at lease end two months later. This second lease was written same as the first, except for the condition of property clause, which was worded like the first lease's addendum: It stated all co-tenants and I agreed to accept the condition of the property to be as was documented at the start of the first lease. The first lease with all documentation and the roommate change addendum were attached to the second lease. I had inspected the rental prior to signing and it was still in perfect condition and I documented that.

Each subsequent roommate change has been in a lease addendum as I did for the first lease, and each subsequent one-year lease is the same as the second lease, in that it always refers to the condition of the property as being accepted how it was documented at the start of the first lease. Every lease, documentation, addendums, etc. are attached to each new lease.

Some of my concerns going forward this way are, 1) Even though signed by all as agreeing to accept the condition of the property as was documented four years ago, would that clause be likely to hold up in court should I have to go to collect repair costs? What if it goes six years, or ten years, without a full vacancy? 2) If a co-tenant just "takes off", I inspect and find damage that remaining co-tenants attribute to ex-roommate (and costs are more than ex's deposit share), what handling of this should I state in my lease, to protect myself if the ex-roommate denies responsibility? 3) And many other things I haven't thought of yet...

Thank you for your time and for any thoughts or suggestions on what I should consider changing or doing instead, that will be better for me and for my tenants.

--Kind regards.
The security deposits can be collected from each tenant/roommate separately but the deposits from each need to cover the rental property as a whole. Damage by one tenant will affect all of the other tenants, just as a missed payment by one tenant will affect all of the other tenants.

The tenants as a group are responsible for the entire rent and the condition of the entire property.

Take what you need from the security deposit as a whole and let the tenant-roommates figure out how to collect the proper share from any tenant who doesn’t pay or who damages the property.
 
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Thanks for your reply. I'm not sure I understand... are you suggesting I don't need to do anything with my written lease the way I'm handling it now, and verbally advise the tenants it's their problem to collect from the responsible party?
 

quincy

Senior Member
Thanks for your reply. I'm not sure I understand... are you suggesting I don't need to do anything with my written lease the way I'm handling it now, and verbally advise the tenants it's their problem to collect from the responsible party?
I can’t tell you how to write your leases. That goes beyond the scope of this forum. However, I can tell you that the best way to structure your leases is so that the obligation to pay all rent and cover all tenant-caused damage to the rental will fall contractually on your tenants and not on you. How you do that is generally best accomplished through a professionally-drafted lease.

What “jointly and severally liable” means is that each individual tenant living in a unit with others is responsible for the entire rent per month and for any and all tenant-caused damages, not just their “share” of the rent or the damage they themselves cause. Should one tenant not pay rent or should one tenant cause damage, you can collect from them all.

If the tenants have a problem with a non-rent paying tenant or a damage-causing tenant, they can chase that tenant down and sue the tenant to recover their costs.
 
Yes I know what "joint and severally liable" means. I mentioned it in my post so a reader would know I have it since it is applicable to my questions.

I'm not asking you to write my lease, I was asking for clarification on your suggestion and confirmation I understood.

This seems an overly territorial answer. So I've joined the wrong forum. Thanks for your time.
 

quincy

Senior Member
... I was asking for clarification on your suggestion and confirmation I understood.

... Thanks for your time.
You seem to have understood my suggestion. :)

Although you appear to be a seasoned landlord, having a legal professional in your area review your leases in their entirety is the best way to learn if what you hope to accomplish with your leases has been covered.

Thanks for the thanks.
 
I already use a "legal professional" for my leases - an attorney. I'm asking for information on what others have done with their leases and arrangements. Perhaps I'll hear from another.
 

quincy

Senior Member
I already use a "legal professional" for my leases - an attorney. I'm asking for information on what others have done with their leases and arrangements. Perhaps I'll hear from another.
We have a few forum members who are, or have been, landlords so you are welcome to wait for their responses.

For my own leases, I have year leases and, if a tenant wishes to leave early, they are responsible for finding a subletter to take over the rental until the end of the year’s lease. Their security deposit is not used or refunded until the end of the lease.

I personally think it is a mistake to have overlapping leases on the same rental unit. Keep it simple and there is less chance for anyone to misunderstand what is expected of them.
 
Yes, I have those things as well. I'm not looking to cover those other things in my lease but to hear from anyone who has a rental that doesn't go vacant for years - but the "responsible parties" for damage may change over that time. You've made the suggestion to hold tenants responsible for everything, and I'll give that some thought. Now I'd like to hear how other people approach it.
 

quincy

Senior Member
Yes, I have those things as well. I'm not looking to cover those other things in my lease but to hear from anyone who has a rental that doesn't go vacant for years - but the "responsible parties" for damage may change over that time. You've made the suggestion to hold tenants responsible for everything, and I'll give that some thought. Now I'd like to hear how other people approach it.
Fair enough. Good luck.
 

STEPHAN

Senior Member
If we have roommates, we do it exactly as you do it and never had any trouble legally, even if we had to evict the tenants. Just make very clear, that it is a combined deposit and not single ones.
 

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