Have you ever thought of adding someone to your lease? Maybe you want to share your apartment with a friend, a partner, or a family member.
Or maybe you need to sublet your place for a while and find a new tenant. Whatever the reason, adding someone to a lease is not as simple as it sounds.
There are many things to consider, such as the cost, the process, and the risks involved.
In this blog post, we will explain everything you need to know about adding someone to a lease, and give you some tips to minimize the costs and avoid the pitfalls.
Does it cost to add someone to a lease?
Adding someone to a lease can incur various costs, typically ranging from $25 to $150, depending on the property management or landlord’s policies. This fee covers administrative costs, including background and credit checks, to assess the new tenant’s suitability.
Cost Implications of Adding Someone to a Lease
1. Application Fees
An application fee is a fee that the landlord or the property manager charges to process your request to add someone to a lease.
The application fee covers the cost of verifying the identity, income, and credit history of the new person.
The application fee can vary depending on the landlord and the location, but it usually ranges from $25 to $100 per person.
2. Credit Check Fees
A credit check fee is a fee that the landlord or the property manager charges to check the credit score and the credit report of the new person.
The credit check fee is usually included in the application fee, but sometimes it can be a separate charge.
The credit check fee can vary depending on the credit bureau and the location, but it usually ranges from $15 to $50 per person.
3. Lease Amendment Fees
A lease amendment fee is a fee that the landlord or the property manager charges to make changes to your existing lease agreement.
The lease amendment fee covers the cost of drafting, reviewing, and signing a new lease document that reflects the addition of the new person.
The lease amendment fee can vary depending on the landlord and the location, but it usually ranges from $50 to $200 per amendment.
4. Increased Security Deposit
A security deposit is a sum of money that the landlord or the property manager requires you to pay before you move in to the property.
The security deposit serves as a guarantee that you will take good care of the property and pay your rent on time.
The security deposit is usually refundable at the end of the lease, minus any deductions for damages or unpaid rent.
The security deposit can vary depending on the landlord, the location, and the type of property, but it usually equals to one or two months of rent.
When you add someone to a lease, the landlord or the property manager may ask you to pay an increased security deposit to cover the potential risk of damage or default by the new person.
The increased security deposit can vary depending on the landlord and the location, but it usually equals to the proportionate share of the rent that the new person will pay.
5. Potential Rent Increase
A rent increase is an increase in the amount of rent that you have to pay to the landlord or the property manager every month.
The rent increase can occur for various reasons, such as inflation, market demand, property improvement, or lease renewal.
The rent increase can vary depending on the landlord, the location, and the type of property, but it usually ranges from 2% to 10% per year.
When you add someone to a lease, the landlord or the property manager may use this as an opportunity to increase your rent, especially if your lease is month-to-month or nearing its expiration.
The landlord or the property manager may argue that adding someone to a lease increases the wear and tear of the property, the utility consumption, and the demand for the property.
The potential rent increase can vary depending on the landlord and the location, but it usually equals to the market value of the property or the maximum allowed by the law.
The Process of Adding Someone to a Lease
1. Informing the Landlord or Property Manager
The first step is to inform the landlord or the property manager that you want to add someone to your lease.
You should do this as soon as possible, preferably in writing, to avoid any confusion or misunderstanding.
You should explain the reason why you want to add someone to your lease, the relationship between you and the new person, and the duration of the stay.
You should also provide the name, contact information, and other relevant details of the new person.
2. Filling Out Necessary Paperwork
The second step is to fill out the necessary paperwork that the landlord or the property manager requires you to complete.
This may include an application form, a consent form, a lease amendment form, and a sublease agreement form.
You should make sure that you and the new person fill out the paperwork accurately and honestly, and provide all the required documents, such as proof of income, proof of identity, and references.
3. Undergoing Credit and Background Checks
The third step is to undergo credit and background checks that the landlord or the property manager conducts to verify the eligibility and suitability of the new person.
The credit and background checks may include checking the credit score, the credit report, the criminal record, the eviction history, and the rental history of the new person.
The landlord or the property manager may also contact the references and the previous landlords of the new person to get more information.
4. Reviewing and Signing the Amended Lease
The fourth step is to review and sign the amended lease that the landlord or the property manager prepares to reflect the addition of the new person.
The amended lease may include changes to the rent amount, the security deposit, the lease term, the occupancy limit, the rules and regulations, and the rights and responsibilities of both parties.
You should read the amended lease carefully and make sure that you understand and agree with all the terms and conditions before signing it. You should also keep a copy of the amended lease for your records.
Potential Risks and Considerations
1. Shared Financial Responsibility
When you add someone to a lease, you share the financial responsibility of paying the rent and the utilities, as well as covering any damages or losses that may occur to the property.
This means that if the new person fails to pay their share of the rent or the utilities, or causes any damage or loss to the property, you may have to pay for it out of your own pocket.
You may also have to deal with late fees, penalties, or legal actions from the landlord or the property manager.
2. Termination or Breach of Lease
When you add someone to a lease, you may also affect the termination or the breach of the lease.
This means that if the new person wants to move out before the end of the lease, or violates any of the terms and conditions of the lease, you may have to face the consequences.
You may have to find a replacement tenant, pay the remaining rent, or forfeit your security deposit. You may also have to deal with eviction, lawsuit, or negative impact on your credit score.
3. Impact on Rental History
When you add someone to a lease, you may also impact your rental history.
This means that if the new person has a bad rental history, such as late payments, evictions, or complaints, it may reflect on your rental history as well.
This may affect your ability to rent another property in the future, as landlords or property managers may check your rental history and see the negative records.
4. Legal Implications
When you add someone to a lease, you may also face some legal implications.
This means that if the new person engages in any illegal or unethical activities on the property, such as drug use, theft, or violence, you may be held liable as well.
You may have to deal with police, court, or fines. You may also have to deal with the loss of your property, your safety, or your reputation.
Tips to Minimize Costs When Adding Someone to a Lease
1. Negotiate with the Landlord
One of the best ways to minimize the costs when adding someone to a lease is to negotiate with the landlord or the property manager.
You can try to negotiate with the landlord or the property manager to reduce or waive some of the fees and charges that they may impose when you add someone to a lease.
For example, you can ask them to lower the application fee, the credit check fee, or the lease amendment fee, or to keep the rent and the security deposit at the same level.
You can also offer them some incentives, such as paying the rent in advance, signing a longer lease term, or making some improvements to the property.
However, you should be respectful and realistic when you negotiate, and be prepared to accept a reasonable offer.
2. Understand All Fees Upfront
Another way to minimize the costs when adding someone to a lease is to understand all the fees and charges that you may have to pay upfront.
You should ask the landlord or the property manager to provide you with a written breakdown of all the fees and charges that they may charge when you add someone to a lease, and to explain the purpose and the amount of each fee and charge.
You should also ask them to provide you with a copy of the amended lease before you sign it, and to review it carefully to make sure that there are no hidden or unexpected fees or charges.
3. Check Local Laws and Regulations
A third way to minimize the costs when adding someone to a lease is to check the local laws and regulations that may apply to your situation.
You should research the laws and regulations that govern the rental market in your area, such as the rent control, the rent increase, the security deposit, the subletting, and the tenant rights.
You should also consult a lawyer or a legal aid organization if you have any questions or concerns about your legal rights and obligations.
You should be aware of your rights and responsibilities as a tenant, and to protect yourself from any unlawful or unfair practices by the landlord or the property manager.
4. Consider a New Lease Instead of an Amendment
A fourth way to minimize the costs when adding someone to a lease is to consider a new lease instead of an amendment.
Sometimes, it may be cheaper and easier to sign a new lease with the landlord or the property manager that includes the new person, rather than to amend your existing lease.
This may be the case if your lease is month-to-month or nearing its end, or if the landlord or the property manager is willing to offer you a better deal or a more flexible lease term.
However, you should weigh the pros and cons of signing a new lease, and make sure that you are not giving up any benefits or protections that you have under your current lease.
FAQs
Can I add someone to my existing lease agreement?
Yes, you can add someone to your lease, but you must get your landlord’s approval first.
What is the process for adding someone to a lease?
The process typically involves submitting an application for the new tenant, which the landlord must approve.
Will adding someone to my lease affect my rent?
It may or may not affect your rent; this depends on your landlord’s policy and the terms of your lease agreement.
Is there a fee for adding someone to a lease?
Some landlords charge an administrative fee for lease modifications, including adding a new tenant.
Conclusion
Adding someone to a lease can be a great way to share your living space and your expenses with another person.
However, it can also be a costly and complicated process that involves many fees, charges, steps, risks, and considerations.
Therefore, you should be careful and prepared when you add someone to a lease, and follow the tips that we have provided in this blog post to minimize the costs and avoid the pitfalls.
Resource:
https://www.marylandattorneygeneral.gov/Pages/CPD/landlords.aspx